Annual
REPORT
Dear Shareholders,
2024 was a year of profound transformation for the TIM Group, marking the completion
of key strategic initiatives that redefined our structure and strengthened our market
position.
For the third year in a row, we achieved our targets. Over 18 months, we finalized the
divestment of NetCo, which many thought impossible, and completed a major debt
management operation, significantly improving our financial structure. The sale of the
remaining stake in INWIT and the acceptance of the binding offer for Sparkle further
strengthened our financial flexibility, while the earn-out assumptions and anticipated
other extraordinary income will help consolidate our cash position.
The Group has also reached significant milestones from a business perspective. In Italy,
TIM Consumer achieved a major turnaround, increasing margins by stabilizing revenues
and significantly reducing costs, while TIM Enterprise is positioning itself as a leader in
the Telco & ICT revolution thanks to its expertise in digital services and cloud solutions –
and the fact that it has the only large Italian sales network dedicated to this. In Brazil,
TIM is now the biggest and best digital and telco platform in Latin America, with
excellent margins and sustainable growth.
At the governance level, business delayering has brought tangible benefits. By moving
past vertical integration, we have reduced the regulatory burden, ensuring commercial
flexibility and focusing the investment strategy on mobile network infrastructure and
data centers. In addition, in 2024, the Board of Directors reduced its members from 15
to 9, improving the speed and consistency of decision-making.
The earnings results for 2024 are significant. Revenues grew by 3.1% over 2023, EBITDA
improved by 8.3% – with Brazil contributing as much as 50% – investments accounted
for 14% of revenues, and EBITDA After Lease net of investments increased by 24%
year-on-year. Thanks in part to the sale of INWIT, Net Debt After Lease fell to 7.3 billion
euros. As I pointed out, the performance of the domestic business was particularly
notable, with TIM Consumer reaching a stable phase and TIM Enterprise continuing to
grow beyond the market.
Looking ahead, our 2025-2027 plan takes this growth forward in a solid and sustainable
way. In particular, we foresee an increase in revenues from IoT, cloud and cybersecurity,
which in addition to being a differentiating factor in our proposition, will further enable
the deployment of smart-city solutions and the digitization of the Italian public
administration, so essential for the country's digital and environmental transition. Cash
generation will accelerate, supporting further debt reduction and strengthening our
deleveraging process. We expect to generate about 2.5 billion euros in Equity Free Cash
Flow over the three-year period, which will be used to further support growth and
ensure an optimized financial structure. Our leverage will gradually fall to about 1.3x by
the end of 2027, setting a new benchmark for the industry.
Being a strong company means generating structural cash flow to support future
investments, maintaining a healthy balance sheet with a leverage ratio in line with
industry best practices, and laying the groundwork for a return to shareholder
remuneration – a goal that until recently seemed distant, but is now closer than ever.
Our transformation will continue, working on two closely related levers. On the one
hand, we will continue to increase the efficiency of our operating machine, supported
by the adoption of the most innovative enabling technologies, and on the other hand,
we will persist with the cost rationalization plan. In doing so, we will set clear
sustainability goals, because we firmly believe that the Group's current and future
strength depends also on its ability to make sustainable choices for our environment
and society.
As such, emission reduction targets will not only lead us to reach Net Zero in 2040, but
will also play a big role in acting on the consumption lever, keeping operating costs
under control and increasing the resilience of our business. More broadly, our ESG Plan
2025-2027 will rest on four key pillars: human capital development, including greater
harnessing of people’s abilities, and the race to close the gender gap; infrastructure
efficiency, with investments aimed at environmental sustainability and controlling
consumption, as mentioned above; cybersecurity, with a strengthening of measures in
this area. Finally, we are further accelerating the adoption of artificial intelligence in
order to simplify the daily activities of TIM employees, but also to improve the customer
experience by optimizing complex processes such as customer care.
These results are the fruit of the determination with which we have pursued our
strategy, meeting complex challenges with bold choices and an unwavering
commitment to innovation and operational efficiency. Now, with a leaner structure and
a clear vision for the future, we can look forward with confidence and ambition.
We are back to being a strong, stable and efficient company, ready to take a leading
role in the evolution of the telecommunications industry as it pushes toward market
consolidation. I want to thank all TIM people for your incredible dedication, and our
shareholders for your trust in our work.
Pietro Labriola
CEO
TIM Group
RE
PO
RT
CONTENTS
REPORT ON OPERATIONS ...........................................
7
TIM Group ...............................................................................................
8
Key Operating and Financial Data - TIM Group ......................................................................
9
Consolidated operating performance ......................................................................................
18
Financial and Operating Highlights of the Business Units of the TIM Group .....................
22
Main Commercial Developments ..............................................................................................
28
Main changes in the regulatory framework ............................................................................
36
Competition ..................................................................................................................................
56
Consolidated Financial Position and Cash Flows Performance ............................................
60
Consolidated Data – Tables of detail ........................................................................................
66
After Lease indicators .................................................................................................................
73
Essential intangible resources ...................................................................................................
74
Innovation, research and development ...................................................................................
75
Events after December 31, 2024 ................................................................................................
83
Business Outlook for the year 2025 ..........................................................................................
83
Main risks and uncertainties .......................................................................................................
85
Information for Investors ............................................................................................................
94
Related party transactions .........................................................................................................
96
Alternative performance measures ..........................................................................................
97
TIM S.p.A. ................................................................................................
99
Review of Key Operating and Financial Data - TIM S.p.A. .....................................................
100
Tables of detail – TIM S.p.A. .......................................................................................................
113
After Lease Indicators - TIM S.p.A. ............................................................................................
119
Reconciliation of Consolidated Equity ......................................................................................
120
Corporate Boards .........................................................................................................................
121
Macro-organization chart at December 31, 2024 ...................................................................
123
Sustainability reporting prepared in accordance with
Legislative Decree 125/24 ...................................................................
124
Certification of sustainability report in accordance with Art. 81- ter of Consob
Regulation no.11971 of May 14, 1999 as amended .................................................................
272
Independent Auditors’ Report on the Sustainability Statement ..........................................
273
TIM GROUP CONSOLIDATED FINANCIAL
STATEMENTS ................................................................ 278
Contents ........................................................................................................................................
279
Consolidated Statements of Financial Position ......................................................................
280
Separate Consolidated Income Statements ...........................................................................
282
Consolidated Statements of Comprehensive Income ...........................................................
283
Consolidated Statements of Changes in Equity .....................................................................
284
Consolidated Statements of Cash Flows .................................................................................
285
Notes to the consolidated financial statements ....................................................................
287
Certification of the Consolidated Financial Statements pursuant to Article 81-ter of
Consob Regulation 11971 dated May 14, 1999, as amended ................................................
411
Independent Auditors’ Report ....................................................................................................
412
TIM S.p.A. SEPARATE FINANCIAL STATEMENTS ..... 423
Contents ........................................................................................................................................
424
Statements of Financial Position ...............................................................................................
425
Separate Income Statements ....................................................................................................
427
Statements of Comprehensive Income ....................................................................................
428
Statements of Changes in Equity ..............................................................................................
429
Statements of Cash Flows ..........................................................................................................
430
Notes to the Separate Financial Statements of TIM S.p.A. ...................................................
432
Certification of the Financial Statements for the year pursuant to Article 81-ter of
Consob Regulation 11971 dated May 14, 1999, as amended ................................................
558
Independent Auditors’ Report ....................................................................................................
559
OTHER INFORMATION ................................................. 569
Glossary .........................................................................................................................................
570
Useful information .......................................................................................................................
595
This document has been translated into English for the convenience of the readers.
In the event of discrepancy, the Italian language version prevails.
BOARD OF DIRECTORS
The composition of the Board of Directors of TIM S.p.A. is as follows:
Chairman
Alberta Figari (independent)
Chief Executive Officer and General Manager
Pietro Labriola
Directors
Domitilla Benigni (independent)
Paola Camagni (independent)
Federico Ferro Luzzi (independent)
Paola Giannotti De Ponti (independent)
Giovanni Gorno Tempini
Umberto Paolucci (independent)
Stefano Siragusa (independent – pursuant to Consolidated Law on
Finance)
Secretary to the Board
Agostino Nuzzolo
BOARD OF STATUTORY AUDITORS
The composition of the Board of Statutory Auditors of TIM S.p.A. is as follows:
Chairman
Francesco Fallacara
Standing Auditors
Anna Doro
Massimo Gambini
Francesco Schiavone Panni
Mara Vanzetta
Alternate Auditors
Massimiliano Di Maria
Laura Fiordelisi
Paolo Prandi
Carlotta Veneziani
Independent Auditors
EY S.p.A.
Annual financial report
at December 31, 2024
The Board of Directors and the Board of Statutory Auditors of TIM
S.p.A.
6
OPE
RA
TIONS
4,339
millions
of euros
EBITDA MARGIN
10,126
millions
of euros
ADJUSTED NET FINANCIAL DEBT
3,672
millions
of euros
7,266
millions
of euros
ADJUSTED NET FINANCIAL DEBT - AFTER LEASE
4,825
millions
of euros
EBITDA MARGIN
14,442
millions
of euros
EBITDA
REVENUES
17,521
9,366
2,129
millions
of euros
CAPITAL EXPENDITURES
26,887
numbers
Headcount
Italy
Headcount
Outside Italy
HEADCOUNT AT YEAR END
EBITDA LIKE-FOR-LIKE
EBITDA AFTER LEASE LIKE-FOR-LIKE
Key operating
and
financial data
KEY OPERATING AND FINANCIAL DATA - TIM
GROUP
Consolidated operating and financial data (*)
(million euros)
2024
2023
2022
2021
2020
Revenues
14,442
14,311
15,788
15,316
15,805
EBITDA
(1)
4,825
4,645
5,347
5,080
6,739
EBIT
(1)
1,545
1,342
606
(3,529)
2,104
Profit (loss) before tax from continuing operations
257
(38)
(588)
(4,515)
1,397
Profit (loss) from continuing operations
83
(94)
(2,654)
(8,400)
7,352
Profit (loss) from Discontinued operations / Non current
assets held for sale
(447)
(1,013)
—
—
—
Profit (loss) for the year
(364)
(1,107)
(2,654)
(8,400)
7,352
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
(2,925)
(8,652)
7,224
Capital Expenditures & spectrum
2,129
2,168
4,077
4,630
3,409
Consolidated financial position data (*)
(million euros)
12/31/2024
12/31/2023
12/31/2022
12/31/2021
12/31/2020
Total Assets
37,663
62,159
62,027
69,187
73,234
Total Equity
13,361
17,513
18,725
22,039
28,840
- attributable to owners of the Parent
11,957
13,646
15,061
17,414
26,215
- attributable to non-controlling interests
1,404
3,867
3,664
4,625
2,625
Total Liabilities
24,302
44,646
43,302
47,148
44,394
Total Equity and Liabilities
37,663
62,159
62,027
69,187
73,234
Share capital
11,624
11,620
11,614
11,614
11,588
Net financial debt carrying amount
(1)
10,237
25,776
25,370
22,416
23,714
Adjusted Net Financial Debt
(1)
10,126
25,656
25,364
22,187
23,326
Adjusted net invested capital
(2)
23,487
43,169
44,089
44,226
52,166
Debt ratio (Adjusted net financial debt/Adjusted net
invested capital)
43.1%
59.4%
57.5%
50.2%
44.7%
Consolidated profit ratios (*)
2024
2023
2022
2021
2020
EBITDA / Revenues
(1)
33.4%
32.5%
33.9%
33.2%
42.6%
EBIT / Revenues (ROS)
(1)
10.7%
9.4%
3.8%
(23.0%)
13.3%
Adjusted net financial debt/EBITDA
(1)
2.1
5.5
4.7
4.4
3.5
(*) On July 1, 2024, TIM S.p.A. transferred the “NetCo” business unit –consisting of the activities relating to the primary network, the wholesale
business and the entire shareholding in the subsidiary Telenergia S.r.l. – to FiberCop S.p.A., a company that already managed the activities relating
to the secondary fiber and copper network; concurrent with the transfer, TIM S.p.A. sold its entire stake in the share capital of FiberCop S.p.A. to
Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis Roberts & Co. L.P. (“KKR”)) and, together with FiberCop S.p.A., entered into a master services
agreement regulating the terms and conditions of the services provided between FiberCop S.p.A. and TIM S.p.A.. On that date, therefore, the
deconsolidation of the transferred entity occurred and the effects of the Transaction on the income statement and financial position were
recognized. The income statement figures of the Transferred Business Unit, Telenergia S.r.l. and FiberCop S.p.A., pertaining to the TIM Group until
the date of transfer as well as the comparative figures for fiscal year 2023, have been classified under "Discontinued operations/non-current assets
held for sale," in accordance with IFRS 5.
(1) Details are provided under “Alternative Performance Measures”.
(2) Adjusted net invested capital = Total equity + Adjusted net financial debt.
Report on Operations of the
TIM Group
Key Operating and Financial Data of the TIM Group
9
Headcount, number in the Group at year end (1)
(number)
12/31/2024
12/31/2023
12/31/2022
12/31/2021
12/31/2020
Headcount (excluding headcount relating to Discontinued
operations/Non-current assets held for sale)
26,887
47,180
50,392
51,929
52,347
Headcount relating to Discontinued operations/Non-current
assets held for sale
—
—
—
—
—
Headcount, average number in the Group (1)
(equivalent number)
2024
2023
2022
2021
2020
Headcount (excluding headcount relating to Discontinued
operations/Non-current assets held for sale)
23,752
24,966
45,912
47,942
49,099
Headcount relating to Discontinued operations/Non-current
assets held for sale
9,089
18,524
—
—
—
Financial performance measures
TIM S.p.A.
(euros)
2024
2023
2022
Share prices (December average)
- Ordinary
0.25
0.28
0.21
- Savings shares
0.29
0.28
0.20
Market capitalization (in million euros)
5,507
5,934
4,465
Market to Book Value
(*)
0.46
0.45
0.31
TIM Group
(euros)
2024
2023
2022
Basic earnings per share - ordinary shares
(0.03)
(0.07)
(0.14)
Basic earnings per share – savings shares
(0.03)
(0.07)
(0.14)
Diluted earnings per share - ordinary shares
(0.03)
(0.07)
(0.14)
Diluted earnings per share – savings shares
(0.03)
(0.07)
(0.14)
(1) Includes agency contract workers.
(*) Capitalization/Equity of TIM S.p.A..
Report on Operations of the
TIM Group
Key Operating and Financial Data of the TIM Group
10
Introduction
The TIM Group and TIM S.p.A. Consolidated Financial Statements for the year 2024 and the comparative figures
for the previous year have been prepared in compliance with IFRS issued by the International Accounting
Standards Board and endorsed by the European Union ("IFRS"). The accounting policies and consolidation
principles adopted are consistent with those applied for the TIM Group Consolidated Financial Statements and
the TIM S.p.A. Separate Financial Statements at December 31, 2023, except for the amendments to the
standards issued by IASB and adopted starting from January 1, 2024.
The TIM Group's operating performance is affected by other non-recurring net operating expenses connected to
events and transactions that by their nature do not occur on an ongoing basis in the normal course of operations
and which have been shown because their amount is significant. Non-recurring charges include, among others,
any goodwill impairment changes, charges associated with corporate reorganization/restructuring, provisions for
regulatory disputes and potential liabilities related to them, liabilities with customers and/or suppliers, provisions
for onerous contracts and prior-year adjustments.
On July 1, 2024, the transaction for the sale of the business related to the domestic fixed network (primary
network and wholesale business of TIM S.p.A.), to FiberCop S.p.A. and Telenergia S.r.l. (“NetCo”) was completed.
The P&L results from this business have been classified, in accordance with IFRS 5, as Assets Sold/Available-for-
Sale Assets. As a result of this classification by NetCo, the figures in the separate income statement and the cash
flow statement for 2023 have been consistently reclassified, as required by IFRS 5.
In this document, following the NetCo disposal transaction, in order to provide a better understanding of the
business’s performance, organic economic and financial information relating to the operating performance in
2024 and 2023 of the business in the “TIM ServCo” perimeter is presented below, restated based on operating
data. Such organic information is prepared by simulating the separation operation of the fixed network, with the
creation of the NetCo component and the consequent definition of the TIM ServCo perimeter, as it had occurred
at the start of the reference period (January 1). Therefore, for all organic data the like-for-like definition is used to
highlight both organic information (Brazil Business Unit) and organic information as reconstructed above (TIM
S.p.A, Domestic Business Unit, TIM Group), simulating for the first half of 2024, the impact of the relationship
between TIM and NetCo/FiberCop, regulated by the Master Service Agreement (MSA) and recording, for the
second half of the year, the actual accounting impact of the MSA and the Transitional Services Agreement (TSA).
The TIM Group uses some alternative performance indicators in addition to the conventional financial indicators
required by IFRS Accounting Standards.
Specifically, these alternative performance measures refer to: EBITDA; EBIT; organic change and impact of non-
recurring items on revenues, EBITDA and EBIT; EBITDA margin and EBIT margin; Net financial debt carrying
amount and adjusted net financial debt; Equity free cash flow; Cash flow from operations; Cash flow from
operations (net of licenses). Following the adoption of IFRS 16, the TIM Group also presents the following
additional alternative performance measures: EBITDA After Lease (“EBITDA-AL”), Adjusted net financial debt
After Lease, Equity Free Cash Flow After Lease.
In line with the ESMA guidance on alternative performance measures (Guidelines ESMA/2015/1415), the meaning
and contents of such are explained in the section on “Alternative performance measures” and the analytical
detail of the amounts of the reclassifications introduced and of the methods for determining indicators is
provided.
Finally, it should be noted that the section “Business Outlook for the year 2025” contains forward-looking
statements regarding the Group’s intentions, beliefs and current expectations in relation to the Group’s financial
results and other aspects of the Group’s activities and strategies. Readers of this Annual Financial Report are
reminded not to place undue reliance on forward-looking statements; in fact, actual results may differ
significantly from forecasts owing to risks and uncertainties depending on numerous factors, the majority of
which are beyond the scope of the Group’s control. For further details, please refer to the “Main risks and
uncertainties” chapter, which details the main risks relating to the TIM Group’s business activities which could
affect, including considerably, the ability to achieve the objectives set.
∂
Report on Operations of the
TIM Group
Key Operating and Financial Data of the TIM Group
11
Highlights
2024 was a year of profound transformation for TIM, marked by the completion of the journey begun in 2022
with the completion of the sale of NetCo to Kohlberg Kravis Roberts & Co. L.P. (“KKR”) and the resulting
reduction in financial debt.
The Group’s new structure is driving improved performance in the domestic market, while operational
efficiency and cash generation continue to grow in the Brazilian market.
On the financial front, TIM closed 2024 by meeting or exceeding the Group guidance provided to the market for
the third consecutive year and is laying the foundation for accelerating the company’s development.
2024 RESULTS (organic results1)
■
Group total revenues amounted to 14.5 billion euros, up by 3.1% year-on-year (+1.5% in domestic to 10.2
billion euros, +6.8% in Brazil to 4.4 billion euros); Group service revenues rose by 3.4% year-on-year to 13.5
billion euros (+2.0% in domestic to 9.3 billion euros, +6.6% in Brazil to 4.2 billion euros);
■
Group EBITDA grew significantly, increasing by 8.3% year-on-year to 4.3 billion euros (+8.3% domestic to
2.2 billion euros, +8.3% in Brazil to 2.2 billion euros);
■
Group EBITDA After Lease grew remarkably, rising 10.1% year-on-year to 3.7 billion euros (+8.5% in
domestic to 2 billion euros, +11.9% in Brazil to 1.7 billion euros);
■
TIM Consumer2 reported total revenues rising to 6.1 billion euros (+0.6% year-on-year). The entity
continued on its path of stabilization during 2024: factors supporting this trend include the positive effects
of repricing activities carried out since the beginning of the year and limited churn. Customer platform
revenues are also up thanks to combined broadband connectivity and entertainment offerings and ICT
services revenues for small and medium-sized enterprises (+7%);
■
TIM Enterprise2 reported total revenues of 3.3 billion euros (+4.1% year on year). The entity continued to
outperform the reference market (service revenues +6%) due to its strategy of defending its connectivity
business and growth in IT revenues, which account for 64% of the total. There was a 4.1 billion euro
increase in the value of contracts signed in the 12 months, with the contribution of the Polo Strategico
Nazionale (520 million euros compared to 300 million euros in 2023);
■
TIM Brasil reported revenues of 4.4 billion euros (+6.8% year-on-year) and an EBITDA After Lease of 1.7
billion euros (+11.9% year-on-year), continuing the growth trajectory of the last two years thanks to the
momentum from the mobile segment.
During the year, cost containment actions aimed at increasing the level of structural efficiency of the domestic
perimeter continued successfully (“Transformation Plan”) and 115% of the target of a reduction in excess of
the 0.2 billion euros forecast for the 2024 was achieved.
The Group’s Adjusted Net Financial Debt After Lease as at December 31, 2024 fell below 7.3 billion euros, down
0.8 billion euros from the value immediately following the completion of the sale of NetCo, thanks to organic
cash generation in the second half of the year and the sale of the remaining stake in INWIT, which was
finalized in November. The Group has achieved the stated deleverage target, with a ratio of Adjusted Net Debt
After Lease to Organic EBITDA After Lease3 below 2x.
The Group’s liquidity margin covers financial maturities until 2029.
Report on Operations of the
TIM Group
Key Operating and Financial Data of the TIM Group
12
1TIM Domestic’s financial results as at December 31, 2024 are based on preliminary and “like-for-like” management information, reworked
simulating for the first half of 2024 the impact of the relationship between TIM and NetCo/FiberCop, governed by the Master Service Agreement
(MSA), while, for the second half, the results reflect the actual accounting impact of the MSA and the Transitional Services Agreement (TSA). The
2023 results used as a comparison are also based on “like-for-like” information, simulating the effects of the TIM/NetCo relationship as if the NetCo
sale had taken place on January 1, 2023.
2 The revenues of TIM Consumer and TIM Enterprise and the related growth percentages are shown net of the ratios between the two areas and
include the effects of the Master Service Agreement with FiberCop and, from the third quarter of 2024, also the Transitional Service Agreement.
3 Organic EBITDA After Lease for 2024 is to be understood as the “like-for-like” organic EBITDA After Lease of the TIM Group after the sale of NetCo.
The following are the main financial results of the like-for-like TIM Group (“like-for-like TIM Group ServCo”) in
which the organic economic and financial information relating to the operating performance for 2024 and 2023
have been reworked based on management information. Such organic like-for-like information is prepared by
simulating the separation operation of the fixed network, with the creation of the NetCo component and the
consequent definition of the (new) ServCo TIM Group perimeter, as if it had occurred at the start of the
reference period (January 1).
Like-for-like TIM Group ServCo results
(million euros) - organic data (*)
4th Quarter
2024
4th Quarter
2023
% Change
2024
2023
% Change
Revenues
3,812
3,733
2.1
14,493
14,062
3.1
TIM Domestic
2,758
2,737
0.8
10,162
10,011
1.5
of which TIM Consumer
1,551
1,524
1.8
6,078
6,040
0.6
of which TIM Enterprise
1,018
998
2.0
3,291
3,162
4.1
of which Sparkle
231
273
(15.4)
971
1,021
(4.9)
TIM Brasil
1,062
1,006
5.7
4,366
4,089
6.8
Service revenues
3,472
3,417
1.6
13,497
13,049
3.4
TIM Domestic
2,465
2,460
0.2
9,314
9,129
2.0
of which TIM Consumer
1,378
1,393
(1.1)
5,546
5,538
0.1
of which TIM Enterprise
915
884
3.5
3,017
2,846
6.0
of which Sparkle
214
243
(11.9)
929
957
(2.9)
TIM Brasil
1,015
967
5.1
4,218
3,958
6.6
EBITDA
1,089
1,017
7.1
4,339
4,006
8.3
TIM Domestic
558
516
8.1
2,190
2,023
8.3
TIM Brasil
533
503
6.3
2,155
1,991
8.3
EBITDA AL
927
864
7.3
3,672
3,336
10.1
TIM Domestic
515
472
9.0
2,014
1,857
8.5
TIM Brasil
414
394
5.7
1,664
1,487
11.9
CAPEX (net of telecommunications
licenses)
757
641
18.1
2,091
2,064
1.3
TIM Domestic
535
432
23.8
1,311
1,291
1.5
TIM Brasil
222
209
6.3
780
773
1.0
EBITDA AL - CAPEX (net of
telecommunications licenses)
170
223
(23.8)
1,581
1,272
24.3
TIM Domestic
(20)
40
—
703
566
24.2
TIM Brasil
192
185
5.1
884
714
23.8
(*) The organic results exclude non-recurring items and the comparable base is calculated net of the foreign currency translation and the change in
the scope of consolidation.
Report on Operations of the
TIM Group
Key Operating and Financial Data - TIM Group
13
The main financial results of the TIM Group, in which NetCo is classified as Discontinued Operations, were as
follows: "TIM Group (NetCo Discontinued Operations)"). Specifically, the economic or financial results related
to the domestic fixed network component (TIM S.p.A.'s primary network and wholesale business), FiberCop
S.p.A. and Telenergia S.r.l. ("NetCo"), have been classified under IFRS 5 as results related to "Assets Sold/
Available-for-Sale Assets."
TIM Group (NetCo Discontinued Operations) financial highlights
(million euros) - reported data
2024
2023
% Change
(a)
(b)
(a-b)
Revenues
14,442
14,311
0.9
EBITDA
(1)
4,825
4,645
3.9
EBITDA Margin
(1)
33.4%
32.5%
0.9pp
EBIT
(1)
1,545
1,342
15.1
EBIT Margin
(1)
10.7%
9.4%
1.3pp
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
57.7
Capital Expenditures & spectrum
2,129
2,168
(1.8)
(million euros) - reported data
2024
2023
% Change
(a)
(b)
(a-b)
Equity Free Cash Flow
(1)
243
763
(68.2)
Equity Free Cash Flow After Lease
(1)
(321)
(64)
-
Adjusted Net Financial Debt(2)
(1)
10,126
25,656
(60.5)
Net Financial Debt After Lease(2)
(1)
7,266
20,349
(64.3)
(1) For details, please refer to the “Alternative performance measures” chapter.
(2) The change in the fair value of derivatives and related financial liabilities/assets is adjusted by the booked Net Financial Debt with no monetary
effect.
Report on Operations of the
TIM Group
Key Operating and Financial Data - TIM Group
14
Disposal of NetCo
At its meeting of July 6, 2022, TIM's Board of Directors approved the strategic objective of reorganizing the
Company with the aim of leaving behind the Company’s vertical integration.
In November 2023, the Board of Directors of TIM S.p.A., as a result of an extensive and thorough review
conducted with the assistance of leading financial and legal advisors, reviewed and accepted the binding offer
submitted on October 16, 2023 by Kohlberg Kravis Roberts & Co. L.P. ("KKR") for the purchase of TIM's fixed-line
network assets and equity interests held in FiberCop S.p.A. and Telenergia S.r.l. (also referred to as the
"NetCo"), by Optics BidCo S.p.A. (a subsidiary of KKR) (hereinafter referred to as the "NetCo Disposal").
Following acceptance of the offer, TIM S.p.A. then signed a Transaction Agreement with Optics BidCo that
provided:
■
the contribution by TIM S.p.A. of a business unit (the "Business Unit") - consisting of the activities related to
the Primary Network, the so-called""Wholesale" business and the entire stake in the subsidiary Telenergia
S.r.l. - in FiberCop S.p.A. ("FiberCop"), a company that already managed the activities related to the
secondary fiber and copper network, and
■
the simultaneous purchase by Optics Bidco of the entire shareholding held by TIM S.p.A. in FiberCop S.p.A.
itself, following the aforementioned transfer.
The Transaction Agreement also provided that the consideration for the sale of the stake could also be partially
paid through the transfer to Optics BidCo of part of the TIM Group's debt at the same time as the closing of the
NetCo Disposal ( Liability Management/ Exchange Offers).
In detail, three Exchange Offers were made of new bonds issued by Optics BidCo with bonds previously issued
by TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A. As of the closing date, a par value of
3,669,680,000 euros was exchanged for bonds issued by TIM S.p.A. and Telecom Italia Finance S.A., and a par
value of USD 2,000,011,000 for bonds issued by Telecom Italia Capital S.A. The new bonds issued by Optics
BidCo have essentially the same terms as the corresponding original bond series, including maturity, interest
rate, interest payment dates and so-called restrictive covenants.
Preliminary activities carried out by TIM S.p.A. for the Disposal of NetCo include obtaining the following
authorizations:
■
authorization on distortionary foreign subsidies and authorization under the Golden Power framework
(obtained in January 2024);
■
authorization of the divestment from the European Commission (obtained in May 2024).
Following those authorizations being obtained, TIM S.p.A. made the transfer of the Business Unit to FiberCop
with effect on July 1, 2024. also on July 1, 2024, TIM S.p.A. transferred to Optics Bidco the entire stake it held in
the share capital of FiberCop and signed, with FiberCop, the so-called Master Services Agreement governing
the terms and conditions of the services that are rendered between NetCo and TIM S.p.A.. .
It should also be noted that the sale agreement includes usual post-closing price adjustment mechanisms as
well as earn-out mechanisms in favor of TIM.
For further details, including the economic and financial impacts related to the NetCo transaction, please refer
to the Note "Discontinued Operations/Non-current Assets Held for Sale" in the TIM Group's consolidated
financial statements and TIM S.p.A.'s separate financial statements as of December 31, 2024.
Report on Operations of the
TIM Group
Key Operating and Financial Data - TIM Group
15
Complex contracts
As part of a process to identify and define initiatives to develop the Company’s internal risk management
system, in 2022 the TIM Group set up a Technical Committee to supervise complex contracts (the “Technical
Committee”).
The Technical Committee has defined:
■
the objective criteria according to which a contract can be classified as “complex”;
■
a process for evaluating and authorizing complex contracts involving multiple players and expertise
capable of assessing the various risk profiles (collective decision-making process);
■
an update to the policy governing the formalization process of contracts within the Group by providing for
a clear identification and formalization of the rationale underlying the decision-making process for
awarding complex contracts, as well as the related escalation mechanisms, thus strengthening the
process of identifying and reconstructing the sources, information elements and controls performed.
Since 2021, some multi-year contracts for the offer of multimedia content and a connectivity agreement have
showed an overall negative margin over the entire contract term, with provisions having to be made for
contractual risks for onerous contracts for the residual durations of the agreements. The residual value of the
provision and the forecasts of the total contractual margin are periodically revised in order to confirm or
update the initial estimates and the residual amount of the provision itself.
The utilization of the contractual risks provision for onerous contracts makes it possible to offset the negative
EBITDA component (referring both to business operating performance and the commitments in terms of fees
that TIM is contractually obliged to pay to counterparties) by recognizing a zero (organic) operating margin
over the duration of the contract.
At December 31, 2024, the provision for contractual risks for onerous contracts totaled 70 million euros, which
is sufficient to compensate the negative margins over the entire duration of the surviving contracts. It should
be noted that, during 2024, the contract was entered into with DAZN and the related risk provision (110 million
euros) was fully used.
Below are:
■
the amount used in 2024 and 2023 of the Provision for risks to cover the negative margin;
■
the amount of the total organic margins (organic EBITDA) without using the risk provision for onerous
contracts.
TIM Group
Domestic Business Unit
(million euros)
2024
2023
2024
2023
ORGANIC EBITDA (including the use of the risk provisions
for onerous contracts)
4,925
5,143
2,774
3,160
- Use of the risk provision for onerous contracts to cover
the negative margin
(112)
(98)
(112)
(98)
ORGANIC EBITDA (excluding the use of the risk provisions
for onerous contracts)
4,813
5,045
2,662
3,062
The amount of 112 million euros is the negative margin, for which the provision was used.
From a financial point of view, the negative margin covered by the provision impacts the net financial position
and cash flows equally.
With reference to multi-year contracts which, in some cases, require TIM to pay the counterparty fees by way
of a guaranteed minimum, it should be noted that the valuation of such contracts and the estimation of the
costs associated with them is subject to numerous uncertainties, including market dynamics, pronouncements
of market regulatory authorities and the development of new technologies to support the service. These
estimates are periodically revised on the basis of the final data to ensure that the forecast figure remains
within reasonably foreseeable ranges. Not all factors mentioned are under the Company's control and could,
therefore, have a significant impact on future forecasts about the performance of the contracts themselves,
the estimated margins (positive or negative), and the cash flows that will be generated.
Report on Operations of the
TIM Group
Key Operating and Financial Data of the TIM Group
16
Main changes in the scope of consolidation of the TIM Group
During 2024, the TIM Group:
■
on July 1, 2024, TIM S.p.A. transferred the Business Unit –consisting of the activities relating to the Primary
Network, the Wholesale business and the entire shareholding in the subsidiary Telenergia S.r.l. – to
FiberCop S.p.A., a company that already managed the activities relating to the secondary fiber and copper
network; concurrent with the transfer, TIM S.p.A. sold its entire stake in the share capital of FiberCop S.p.A.
to Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis Roberts & Co. L.P. (“KKR”)) and, together with
FiberCop S.p.A., entered into a Master Services Agreement regulating the terms and conditions of the
services provided between FiberCop S.p.A. and TIM S.p.A.. On that date, therefore, the deconsolidation of
the transferred entity occurred and the effects of the Transaction on the income statement and financial
position were recognized. The income statement figures of the Business Unit pertaining to the TIM Group
up to the date of sale have been classified as Discontinued Operations, in application of IFRS 5;
■
On June 24, 2024, through its subsidiary Telsy S.p.A. (Domestic Business Unit), TIM S.p.A. acquired control
of QTI S.r.l., raising its percentage ownership in the share capital from 49% to 80%. QTI S.r.l. is engaged in
the development, production and marketing of innovative hi-tech products and services.
The main changes in the scope of consolidation in 2023 were the following:
■
the acquisition on April 20, 2023, by Telsy S.p.A. of the entire share capital of TS-Way S.r.l., a company
engaged in the field of IT security (Domestic Business Unit);
■
the sale on August 4, 2023 by TIM S.p.A. of the entire share capital of TIM Servizi Digitali S.p.A. (Domestic
Business Unit).
Furthermore, in November 2023 the TIM Group, through Olivetti S.p.A., had sold the Olivetti business unit
dedicated to cash systems for the retail sector to Buffetti (Dylog group).
Report on Operations of the
TIM Group
Key Operating and Financial Data of the TIM Group
17
CONSOLIDATED OPERATING PERFORMANCE
Revenues
TIM Group’s total revenues (NetCo Discontinued Operations) in FY2024 amounted to 14,442 million euros,
+0.9% compared to FY2023 (14,311 million euros).
The breakdown of total revenues for the year 2024 by operating segment in comparison with 2023 is as
follows:
(million euros)
2024
2023
Changes
% weight
% weight
absolute
%
%
like-for-like
Domestic
10,111
70.0
9,937
69.4
174
1.8
1.5
Brazil
4,366
30.2
4,412
30.8
(46)
(1.0)
6.8
Other Operations
—
—
—
—
—
Adjustments and eliminations
(35)
(0.2)
(38)
(0.2)
3
Consolidated Total
14,442
100.0
14,311
100.0
131
0.9
3.1
Consolidated like-for-like revenues are calculated as follows:
(milioni di euro)
4th Quarter
2024
4th Quarter
2023
% Change
2024
2023
% Change
REVENUES
3,812
3,870
(1.5)
14,442
14,311
0.9
Foreign currency financial statements translation effect
(169)
(323)
ORGANIC REVENUES excluding non-recurring items
3,812
3,701
3.0
14,442
13,988
3.2
Impacts deriving from:
Master Service Agreement (MSA)
—
33
67
134
Other
—
(1)
(16)
(60)
Like-for-like ORGANIC REVENUES
3,812
3,733
2.1
14,493
14,062
3.1
EBITDA
TIM Group EBITDA (NetCo Discontinued Operations) in FY2024 is 4,825 million euros (4,645 million euros in
FY2023, +3.9%).
EBITDA by operating segment for 2024, compared to 2023, was as follows:
(million euros)
2024
2023
Changes
% weight
% weight
absolute
%
%
like-for-like
Domestic
2,674
55.4
2,512
54.1
162
6.4
8.3
Brazil
2,155
44.7
2,141
46.1
14
0.7
8.3
Other Operations
(6)
(0.1)
(8)
(0.2)
2
Adjustments and eliminations
2
—
—
—
2
Consolidated Total
4,825
100.0
4,645
100.0
180
3.9
8.3
Consolidated like-for-like EBITDA is calculated as follows:
(milioni di euro)
4th Quarter
2024
4th Quarter
2023
% Change
2024
2023
% Change
EBITDA
1,086
1,239
(12.3)
4,825
4,645
3.9
Foreign currency financial statements translation effect
(84)
(157)
Non-recurring expenses (income)
5
104
100
656
Effect of translating non-recurring expenses (income) in
currency
(2)
(1)
ORGANIC EBITDA excluding non-recurring items
1,091
1,257
(13.2)
4,925
5,143
(4.2)
Impacts deriving from:
New Master Service Agreement (MSA)
—
(446)
(902)
(1,814)
Reversal of previous MSA between TIM and FiberCop
—
178
341
699
Other
(2)
28
(25)
(22)
Like-for-like ORGANIC EBITDA
1,089
1,017
7.1
4,339
4,006
8.3
Report on Operations of the
TIM Group
Consolidated operating performance
18
For further details about "Non-recurring expenses (income)" please refer to the Note "Significant non-recurring
events and transactions" in the TIM Group's consolidated financial statements as of December 31, 2024.
TIM Group’s (NetCo Discontinued Operations) EBITDA was particularly impacted by the change in the line
items analyzed below:
■
Acquisition of goods and services (8,017 million euros; 7,445 million euros in 2023):
(million euros)
2024
2023
Change
Acquisition of goods
974
1,046
(72)
Revenues due to other TLC operators and costs for telecommunications
network access services
1,260
1,294
(34)
Commercial and advertising costs
1,715
1,683
32
Professional and consulting services
214
253
(39)
Power, maintenance and outsourced services
1,023
836
187
Lease and rental costs
1,067
930
137
Other
1,764
1,403
361
Total acquisition of goods and services
8,017
7,445
572
% of Revenues
55.5
52.0
3.5pp
The increase in Acquisition of goods and services is mainly due to higher network access charges (included in
Other) and higher energy and maintenance costs.
■
Employee benefits expenses (1,478 million euros; 1,950 million euros in 2023):
(million euros)
2024
2023
Change
Employee benefits expenses - Italy
1,121
1,587
(466)
Ordinary employee expenses and costs
1,034
1,107
(73)
Restructuring and other expenses
87
480
(393)
Employee benefits expenses – Outside Italy
357
363
(6)
Ordinary employee expenses and costs
357
361
(4)
Restructuring and other expenses
—
2
(2)
Total employee benefits expenses
1,478
1,950
(472)
% of Revenues
10.2
13.6
(3.4)pp
The reduction of 472 million euros in personnel costs is mainly attributable to:
•
to the decrease of 393 million euros in the item “Restructuring costs and other expenses” of the Italian
component. In 2024, 87 million euros in charges were provisioned, mainly relating to wage subsidies
under the solidarity contracts and individual redundancy plans, as provided for by the union agreement
signed by the Parent Company with the labor unions. In 2023, charges totaling 480 million euros were
incurred in relation to the exits of non-executive personnel – as provided for in application of Article 4
of Law no. 92 of June 28, 2012, in relation to in the agreement signed on March 21, 2023 by Parent
Company TIM S.p.A with the trade unions – and in relation to the top-up of provisions for charges
resulting from the agreements signed by Parent Company TIM S.p.A, Telecom Italia Sparkle,
Telecontact, Noovle and Olivetti in 2022;
•
the decrease of 73 million euros in the Italian component of ordinary employee expenses, mainly due
to the savings resulting from the reduction of the average Italian workforce by -2,126 units on average,
partially offset by the lower impact caused by the reduction in hours under the “Solidarity contract”
signed on April 12, 2024 as compared to the prior Expansion agreement signed in 2022 and terminated
on February 28, 2024 (+946 average units compared to 2023);
•
the decrease of 6 million euros in the foreign component mainly related to the impact of turnover, the
exchange rate change and the local salary dynamics of the Brazil Business Unit.
Report on Operations of the
TIM Group
Consolidated operating performance
19
■
Other income (233 million euros; 141 million euros in 2023):
(million euros)
2024
2023
Change
Late payment fees charged for telephone services
37
37
—
Recovery of employee benefit expenses, purchases and services
rendered
17
11
6
Capital and operating grants
16
17
(1)
Damages, penalties and recoveries connected with litigation
7
24
(17)
Estimate revisions and other adjustments
96
40
56
Income for special training activities
1
2
(1)
Services related to the MSA in place with FiberCop S.p.A.
42
—
42
Other
17
10
7
Total
233
141
92
The increase from 2023 is mainly related to:
•
income from the Master Service Agreement signed by the Parent Company TIM S.p.A. with FiberCop
S.p.A. as of July 1, 2024 (42 million euros);
•
the increase of 56 million euros in estimate revisions and other adjustments of the Parent Company,
mainly related to the repayment of part of the penalty pertaining to the A514 proceeding, as per the
November 13, 2024 Council of State ruling.
■
Other operating expenses (662 million euros; 772 million euros in 2023):
(million euros)
2024
2023
Change
Write-downs and expenses in connection with credit management
232
226
6
Provision charges
56
86
(30)
TLC operating fees and charges
213
218
(5)
Indirect duties and taxes
78
60
18
Penalties, settlement compensation and administrative fines
9
24
(15)
Subscription dues and fees, donations, scholarships and traineeships
9
9
—
Sundry expenses
65
149
(84)
Total
662
772
(110)
Depreciation and amortization
In 2024 the item amounts to 3,189 million euros (3,292 million euros in 2023) and breaks down as follows:
(million euros)
2024
2023
Change
Amortization of intangible assets with a finite useful life
1,419
1,462
(43)
Depreciation of tangible assets
1,194
1,191
3
Amortization of rights of use assets
576
639
(63)
Total
3,189
3,292
(103)
Net impairment losses on non-current assets
Net impairment losses on non-current assets in FY2024 amounted to 94 million euros.
In accordance with IAS 36, goodwill is not subject to amortization, but is tested for impairment on an annual
basis, when preparing the company’s separate and consolidated financial statements.
In preparing the Annual Report for 2024, the TIM Group carried out an impairment test on goodwill. The results
of that testing, carried out in accordance with the specific procedure adopted by the Group, confirmed the
amounts of Goodwill allocated to the Group’s individual Cash Generating Units.
On February 12, 2025, the Directors of TIM S.p.A. accepted the binding offer for the sale of the entire stake
(100%) held in Telecom Italia Sparkle, and the recoverability of the related net assets was verified after
allocating the portion of Domestic goodwill allocable to the Sparkle group, estimated at 52 million euros. As a
result of this assessment, it emerged that it was necessary to make an impairment charge that resulted in a
total impact on the income statement of 80 million euros, 52 million euros of which related to the allocated
goodwill.
For further details, please refer to the Notes "Goodwill" and "Provisions for risks and charges" in the
Consolidated Financial Statements as of December 31, 2024 of the TIM Group.
EBIT
TIM Group EBIT (NetCo Discontinued Operations) in FY2024 is 1,545 million euros (1,342 million euros in
FY2023).
Report on Operations of the
TIM Group
Consolidated operating performance
20
Other income (expenses) from investments
The item was positive for 75 million euros in 2024 (positive for 53 million euros in 2023) and
mainly refers to:
■
the net gain (62 million euros) related to the sale of TIM's remaining 10% stake in the share capital of the
holding company Daphne 3 S.p.A., which holds 30.8% of the share capital of Infrastrutture Wireless Italiane
("INWIT");
■
to net capital gains related to the sale of investments in Italtel S.p.A., NordCom S.p.A. and Swascan S.r.l.
totaling approximately 8 million euros.
The balance for the 2023 financial year mainly includes the income connected to the definition of the Adjusted
Closing Price relating to the acquisition by the Brazilian subsidiary TIM SA of part of the Oi group's mobile
telephony assets (56 million euros).
Finance income (expenses), net
Finance income (expenses) showed a net expense of 1,343 million euros (negative for 1,404 million euros in
2023). The reduction is essentially attributable to the dynamics of interest rates.
Income tax expense
In 2024, income taxes amounted to 174 million euros (56 million euros in 2023) and mainly refers to Brazil
Business Unit companies which recorded a positive pre-tax result.
Profit (loss) for the year
This item breaks down as follows:
(million euros)
2024
2023
Profit (loss) for the year
(364)
(1,107)
Attributable to:
Owners of the Parent:
Profit (loss) from continuing operations
(99)
(270)
Profit (loss) from Discontinued operations / Non current assets held
for sale
(511)
(1,171)
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
Non-controlling interests:
Profit (loss) from continuing operations
182
176
Profit (loss) from Discontinued operations / Non current assets held
for sale
64
158
Profit (loss) for the year attributable to Non-controlling interests
246
334
The result related to “Discontinued operations/Non-current assets held for sale” was negative 447 million
euros; specifically, it includes a gain of 183 million euros, which is net of incidental costs, recognized in the
second half of 2024 following the completion of the NetCo sale.
The Net loss for 2024 was 364 million euros (loss of 610 million euros attributable to owners of the Parent).
Specifically:
■
the second half of 2024 saw a profit of 139 million euros (profit of 36 million euros attributable to owners of
the Parent);
■
the first half of 2024 resulted in a loss of 503 million euros (loss of 646 million euros attributable to the
owners of the Parent), also related to the assets included in Discontinued Operations, which were sold on
July 1, 2024.
Also, please note that the Master Services Agreement governing the relationship between TIM S.p.A. and NetCo
became effective as of July 1, 2024.
Report on Operations of the
TIM Group
Consolidated operating performance
21
Key Performance Indicators di TIM Consumer
2,674
2,101
millions
of euros
millions
of euros
EBITDA MARGIN
10,111
millions
of euros
REVENUES
EBITDA
ORGANIC EBITDA AFTER LEASE
LINES
ARPU MOBILE
4,366
2,155
1,664
62,058
31.4
millions
of euros
millions
of euros
millions
of euros
end
of period
EBITDA
EBITDA LIKE-FOR-LIKE
2,014
millions
of euros
EBITDA AFTER LEASE LIKE-FOR-LIKE
REVENUES
15,984
10.6
at period end
thousand
€/month
7,169
5,478
30.2
thousand
thousand
€/month
Total
Accesses
Consumer
Arpu
Consumer
Arpu
Human calling
Lines
Active
Ultra Broadband Accesses
Fixed
Mobile
Key operating
and
financial data
FINANCIAL AND OPERATING HIGHLIGHTS OF
THE BUSINESS UNITS OF THE TIM GROUP
Domestic
(million euros)
2024
2023
Changes
(a-b)
(a)
(b)
absolute
%
%
like-for-like
Revenues
10,111
9,937
174
1.8
1.5
EBITDA
2,674
2,512
162
6.4
8.3
% of Revenues
26.4
25.3
1.1pp
EBIT
589
516
73
14.1
% of Revenues
5.8
5.2
0.6pp
Headcount at year end (number) (°)
17,751
37,901
(20,150)
(53.2)
(*) Includes agency contract workers: 63 as of December 31, 2024 (31 as of December 31, 2023).
Revenues
Domestic Business Unit (NetCo Discontinued Operations - Domestic ServCo) revenues amounted to 10,111
million euros, up 174 million euros compared to 2023 (+1.8%).
Domestic like-for-like revenues are calculated as follows:
(milioni di euro)
4th Quarter
2024
4th Quarter
2023
Changes
2024
2023
Changes
%
%
REVENUES
2,758
2,704
2.0
10,111
9,937
1.8
Foreign currency financial statements translation effect
—
1
—
Non-recurring income/(expenses)
—
—
—
—
ORGANIC REVENUES - excluding non-recurring items
2,758
2,705
2.0
10,111
9,937
1.8
Impacts deriving from:
Master Service Agreement (MSA)
—
33
67
134
Other
—
(1)
(16)
(60)
Like-for-like ORGANIC REVENUES
2,758
2,737
0.8
10,162
10,011
1.5
“Like-for-like” service revenues amounted to 9,314 million euros (+185 million euros compared to 2023,
+2.0%), thanks to the growth in ICT and Multimedia revenues despite the impact of a competitive market on
the customer base.
“Like-for-like” Handset and Bundle & Handset revenues, including the change in work in progress, totaled
848 million euros in 2024, down 34 million euros from the previous year, due to a decline in both the TIM
Enterprise and Wholesale International Market segments.
Following the completion of the delayering operation, resulting in the sale of NetCo, the presentation of
revenues has been changed, so that the revenues shown below are divided between TIM Consumer, TIM
Enterprise, and the Wholesale International Market (TI Sparkle group), complete with the breakdown of the
reference perimeter.
■
TIM Consumer. The reference perimeter is made up of the set of telephone and Internet services and
products managed and developed in Landline and Mobile for individuals and families (from public telephony,
from caring activities and administrative management of customers) and for customers of SMEs (Small and
Medium Enterprises), SOHO (Small Office Home Office) and other mobile operators (MVNOs); it includes the
company TIM Retail, which coordinates the activities of its stores).
The main Key Performance Indicators of TIM Consumer were as follows:
12/31/2024
12/31/2023
12/31/2022
Total Fixed accesses (thousands)
7,169
7,499
7,799
Of which active ultra-broadband accesses (thousands)
5,478
5,404
5,269
Fixed Consumer ARPU (€/month) (1)
30.2
28.2
28.4
Mobile lines at period end (thousands)
15,984
16,397
16,812
of which Human calling (thousands)
13,280
13,578
13,991
Mobile churn rate (%) (2)
19.4
19.2
20.4
Mobile Consumer Human calling ARPU (€/month) (3)
10.6
10.8
11.0
(1) Organic Consumer service revenues in proportion to the average number of Consumer accesses.
(2) Percentage of human lines discontinued in the period compared to the average human lines.
(3) Organic consumer service revenues (excluding visitors and MVNOs) in proportion to average human calling lines.
Report on Operations of the
TIM Group
Financial and Operating Highlights of the Business Units
of the TIM Group
Business Unit Domestic
23
(million euros) - organic data
4th Quarter
2024
4th Quarter
2023
2024
2023
% Change
(a)
(b)
(c)
(d)
(a-b)/b
(c-d)/d
TIM Consumer revenues - like-for-
like
1,551
1,524
6,078
6,040
1.8
0.6
Service revenues
1,378
1,393
5,546
5,538
(1.1)
0.1
Handset and Bundle & Handset
revenues
173
131
532
502
32.1
6.0
TIM Consumer’s FY2024 revenues amounted to 6,078 million euros and were an improvement of 38 million
euros compared to FY2023, despite the impact of the challenging competitive environment.
Service revenues, which totaled 5,546 million euros, increased by 8 million euros compared to 2023
(+0.1%).
TIM Consumer’s Handset and Bundle & Handset revenues totaled 532 million euros, +30 million euros
compared to the first half of 2023: the change is mainly related to higher sales volumes of mobile
terminals.
■
TIM Enterprise. This segment comprises the connectivity services and products and the ICT solutions
managed and developed for Top, Public Sector and Large Account customers. The following companies are
included: Olivetti, TI Trust Technologies, Telsy and Noovle.
(million euros) - organic data
4th Quarter
2024
4th Quarter
2023
2024
2023
% Change
(a)
(b)
(c)
(d)
(a-b)/b
(c-d)/d
TIM Enterprise revenues - like-for-
like
1,018
998
3,291
3,162
2.0
4.1
Service revenues
915
884
3,017
2,846
3.5
6.0
Handset and Bundle & Handset
revenues
103
114
274
316
(9.6)
(13.3)
The segment’s revenues amounted to 3,291 million euros, up 129 million euros (+4.1%) from 2023, mainly
due to the service revenues component (+6.0%), driven by cloud and security services.
■
Wholesale International Market. Includes the activities of the TI Sparkle group, which operates in the
market for international voice, data and Internet services for fixed and mobile telecommunications
operators, ISPs/ASPs (Wholesale market) and multinational companies through its own networks in the
European, Mediterranean and South American markets.
Revenues for 2024 in the Wholesale International Market segment amounted to 971 million euros, down
compared to 2023 (-50 million euros, -4.9%), due to the geopolitical situation that resulted in the
postponement of several deals related to fiber/spectrum sales and the rationalization of traditional voice
revenues, partly offset by growth in revenues related to mobile operator solutions.
EBITDA
Domestic Business Unit (NetCo Discontinued Operations - Domestic ServCo) EBITDA in 2024 amounted to
2,674 million euros (+162 million euros compared to 2023, +6.4%).
Domestic like-for-like EBITDA is calculated as follows:
(milioni di euro)
4th Quarter
2024
4th Quarter
2023
Changes
2024
2023
Changes
%
%
EBITDA
553
655
(15.6)
2,674
2,512
6.4
Foreign currency financial statements translation effect
—
—
—
—
Non-recurring expenses (income)
5
102
100
648
ORGANIC EBITDA excluding non-recurring items
558
757
(26.3)
2,774
3,160
(12.2)
Impacts deriving from:
New Master Service Agreement (MSA)
—
(446)
(902)
(1,814)
Reversal of previous MSA between TIM and FiberCop
—
178
341
699
Other
—
27
(23)
(22)
Like-for-like ORGANIC EBITDA
558
516
8.1
2,190
2,023
8.3
In relation to the results of the Domestic Business Unit (NetCo Discontinued Operations - Domestic ServCo)
and the dynamics of the main items, it is highlighted that the same dynamics already commented on in the
consolidated Group context influenced the main trends; in detail:
Report on Operations of the
TIM Group
Financial and Operating Highlights of the Business Units
of the TIM Group
Business Unit Domestic
24
(million euros)
2024
2023
Change
Acquisition of goods and services
6,447
5,789
658
Employee benefits expenses
1,145
1,612
(467)
Other operating expenses
265
384
(119)
Specifically:
■
Other income amounted to 208 million euros with an increase of 82 million euros compared to 2023:
(million euros)
2024
2023
Change
Late payment fees charged for telephone services
19
23
(4)
Recovery of employee benefit expenses, purchases and
services rendered
17
11
6
Capital and operating grants
16
17
(1)
Damages, penalties and recoveries connected with
litigation
6
24
(18)
Estimate revisions and other adjustments
96
42
54
Income for special training activities
1
2
(1)
Services related to the MSA in place with FiberCop S.p.A.
42
—
42
Other
11
7
4
Total
208
126
82
The increase in Other income is mainly due to the income (42 million euros) from the MSA entered into
with FiberCop S.p.A. during the year and the increase of 54 million in the estimate revisions and other
adjustments, mainly relating to the repayment of part of the penalty pertaining to the A514 case, as per
the Council of State's ruling of November 13, 2024.
■
Acquisition of goods and services amounted to 6,447 million euros with an increase of 658 million euros
compared to 2023:
(million euros)
2024
2023
Change
Acquisition of goods
787
832
(45)
Revenues due to other TLC operators and interconnection
costs
1,050
1,095
(45)
Commercial and advertising costs
1,233
1,179
54
Professional and consulting services
97
113
(16)
Power, maintenance and outsourced services
784
587
197
Lease and rental costs
797
661
136
Other
1,699
1,322
377
Total acquisition of goods and services
6,447
5,789
658
% of Revenues
63.8
58.3
5.5
The increase in Acquisition of goods and services is mainly due to higher network access charges
(included in Other) and higher energy and maintenance costs.
■
Employee benefits expenses amounted to 1,145 million euros, a decrease of 467 million euros compared
to 2023. The same dynamics already described in the information given on the consolidated operating
performance impacted this performance too.
■
Other operating costs amounted to 265 million euros, a decrease of 119 million euros compared to 2023.
(million euros)
2024
2023
Change
Write-downs and expenses in connection with credit
management
113
108
5
Provision charges
37
57
(20)
TLC operating fees and charges
21
22
(1)
Indirect duties and taxes
34
32
2
Penalties, settlement compensation and administrative
fines
9
25
(16)
Subscription dues and fees, donations, scholarships and
traineeships
7
7
—
Sundry expenses
44
133
(89)
Total
265
384
(119)
Report on Operations of the
TIM Group
Financial and Operating Highlights of the Business Units
of the TIM Group
Business Unit Domestic
25
EBIT
Domestic Business Unit (NetCo Discontinued Operations - Domestic ServCo) EBIT in 2024 amounted to 589
million euros (+73 million euros compared to 2023).
EBIT for 2024 was particularly affected by net write-downs of non-current assets for a total of 94 million euros,
of which 52 million euros related to the goodwill attributed to the Telecom Italia Sparkle group.
Brazil
(million euros)
(million Brazilian reais)
2024
2023
2024
2023
Changes
absolute
%
% organic
excluding
non-
recurring
(a)
(b)
(c)
(d)
(c-d)
(c-d)/d
Revenues
4,366
4,412
25,448
23,834
1,614
6.8
6.8
EBITDA
2,155
2,141
12,562
11,562
1,000
8.6
8.3
% of Revenues
49.4
48.5
49.4
48.5
0.9pp
0.7pp
EBIT
960
833
5,597
4,501
1,096
24.4
23.2
% of Revenues
22.0
18.9
22.0
18.9
3.1pp
2.9pp
Headcount at year end (number)
9,123
9,267
(144)
(1.6)
The average exchange rates used for the translation into euro (expressed in terms of units of Real per 1 euro) were 5.82877 for 2024 and 5.40158 for
2023.
2024
2023
Mobile lines at period end (thousands) (*)
62,058
61,248
Mobile ARPU (reais)
31.4
29.5
ARPU BroadBand (reais)
97.2
96.9
(*) Includes corporate lines.
The Brazil Business Unit (Tim Brazil Group) provides mobile phone services, fiber optic data transmission
using full IP technology and residential broadband services. In addition, the TIM Brasil group provides IoT
services focused on the Agri-food, Industry, Logistics and Utilities sectors.
Revenues
Revenues for 2024 of the Brazil Business Unit (TIM Brazil group) amounted to 25,448 million reais (23,834
million reais in 2023, +6.8%).
The growth was determined by service revenues (24,588 million reais vs 23,071 million reais for 2023, +6.6%)
with mobile telephony service revenues growing 6.8% in 2024 due to the continuous improvement of the post-
paid segment. Revenues from fixed services grew by 3.3% compared to 2023, driven above all by the growth
rate of Ultrafiber.
Revenues from product sales totaled 860 million reais (763 million reais in 2023).
Revenues in the fourth quarter of 2024 totaled 6,631 million reais, increased by 5.7% on the fourth quarter of
2023 (6,275 million reais).
Mobile ARPU for 2024 was 31.4 reais (29.5 reais in 2023, +6.2%).
Total mobile lines at December 31, 2024 amounted to 62.1 million, +0.9 million lines compared to December
31, 2023 (61.2 million lines). Within this change, +2.6 million is attributable to the post-paid segment and -1.7
million to the pre-paid segment. Post-paid customers represented 48.7% of the customer base as of December
31, 2024 (45.1% at December 31, 2023).
Broadband ARPU for 2024 was 97.2 reais (96.9 reais in 2023).
EBITDA
EBITDA in 2024 was 12,562 million reais (11,562 million reais in 2023, +8.6%) and the margin on revenues
amounted to 49.4% (48.5% in 2023).
Organic EBITDA, net of the non-recurring items, increased by 8.3% and was calculated as follows:
(million Brazilian reais)
2024
2023
Changes
absolute
%
EBITDA
12,562
11,562
1,000
8.6
Non-recurring expenses (income)
—
42
(42)
ORGANIC EBITDA excluding non-recurring items
12,562
11,604
958
8.3
The growth in EBITDA can mainly be attributed to the positive performance of revenues from services, partially
offset by the increase in operating costs.
Report on Operations of the
TIM Group
Financial and Operating Highlights of the Business Units
of the TIM Group
Business Unit Domestic
26
The EBITDA margin stood at 49.4% in organic terms (48.7% in 2023).
EBITDA in the fourth quarter of 2024 totaled 3,325 million reais, +6.3% on the fourth quarter of 2023 (3,128
million reais).
In organic terms, as a percentage of revenues, the organic EBITDA margin for the fourth quarter of 2024 was
50.1% (49.9% in the fourth quarter of 2023).
The changes in the main cost items are shown below:
(million euros)
(million Brazilian reais)
2024
2023
2024
2023
Change
(a)
(b)
(c)
(d)
(c-d)
Acquisition of goods and services
1,601
1,687
9,330
9,111
219
Employee benefits expenses
331
338
1,930
1,823
107
Other operating expenses
393
383
2,288
2,075
213
EBIT
EBIT for 2024 was 5,597 million reais (4,501 million reais in 2023, +24.4%).
Organic EBIT, net of the non-recurring items, was calculated as follows:
(million Brazilian reais)
2024
2023
Changes
absolute
%
EBIT
5,597
4,501
1,096
24.4
Non-recurring expenses (income)
—
42
(42)
ORGANIC EBIT - excluding non-recurring items
5,597
4,543
1,054
23.2
The margin on revenues was 22.0% (19.1% in 2023).
EBIT for the fourth quarter of 2024 totaled 1,620 million reais (1,399 in the fourth quarter of 2023).
As a percentage of revenues, the organic EBIT margin for the fourth quarter of 2024 was 24.4% (22.3% in the
fourth quarter of 2023).
Report on Operations of the
TIM Group
Financial and Operating Highlights of the Business Units
of the TIM Group
Business Unit Brazil
27
•
SMB: Strengthening digital channels and
stores for core solutions and focusing agents
on ICT solutions and high value customers
•
Consumer: Digital channel development,
restyling and increased stores productivity,
enhancement in purchasing quality on push
channels
COMMERCIAL
STRATEGY
PREMIUM POSITIONING
AND TECHNOLOGY LEADERSHIP
•
First on the market to offer the 10Gbp fiber
connections and expansion of fiber
coverage to small towns (“white” areas)
•
Development of 5G ULTRA in over 4,500
municipalities and launch of 5G FWA
technology
CONVERGENCE
AND VALUE
•
Launch of Ultra Convergence: Fixed,
Mobile, Devices, and Content
•
New TIM WiFi Casa and 5G ULTRA offer
portfolio, also including top-tier TV
contents
•
New “Business grade” portfolio for Small
and Medium Business companies,
customizable with advanced connectivity
options and digital solutions designed for
specific segments
CUSTOMER BASE - DRIVEN
DATA MANAGEMENT
•
Strengthening our cross-selling and
upselling initiatives
•
Churn Reduction through targeted actions
and a review of the churn management
process
CUSTOMER PLATFORM,
SERVICES
AND DIGITAL CONTENT
•
ICT solutions designed for the SMB
segment in the cyber, cloud, AI and digital
marketing fields
•
Strengthening TIMVISION’s position as the
leading content aggregator in the Italian
market and expansion of the streaming
TV package offering
SALES CHANNELS
MAIN COMMERCIAL DEVELOPMENTS
Domestic
Strengthening the Brand
In 2024, TIM strengthened its “La forza delle connessioni (The strength of connections)” communication
platform thanks to the continuation of its successful TV story-telling format, which looks at some of the
human connections made possible by TIM technology by focusing on global Italian leaders in the worlds of
sport and music.
With a century-long history of serving the country’s development and growth, TIM’s commitment is not only to
serve people and businesses by providing reliable services, but also to be present as a force for change and
progress of the country, feeling the responsibility as a brand to maximize the positive impact on society.
For this reason, the “La Parità Non Può Aspettare (Equality Can’t Wait)” platform has been enriched with
projects and initiatives that underline TIM’s commitment to gender equality and raise awareness of this
important issue.
These various initiatives include the “Il Laberinto” (The Labyrinth) campaign directed by Academy Award
winner Giuseppe Tornatore., which calls on all civil society to take action to break down walls by giving a
central role in the story to the everyday prejudices, stereotypes and gender differences faced by women: a
labyrinth of hardships from which there appears to be no escape.
TIM has also reinforced its reputation for innovation with TIM Enterprise, lending the brand a new visual
identity for the delivery of innovative services to the Business and Public Administration market. This new,
innovation-focused visual identity has helped form an instantly recognizable brand that reflects TIM’s creative
flexibility and the different strands of innovation in which TIM is a major player. Right now, we are witnessing a
major transformation of our society as digital permeates all areas of working and personal life, bringing with it
increased challenges in terms of security and sustainability. New technologies, new business strategies, and
new customer needs are constantly presenting us with new challenges. And as protagonists in this change, we
have responded by evolving our brand to establish ourselves ever more strongly as a digital transformation
partner for companies and the national economy by offering advanced solutions and innovative services
across the board. After all, you can’t build the future by standing still.
A renewed value proposition with a focus on technological
development and convergence, regard for strategic segments and a
firm commitment to sustainability
TIM continues to lead the domestic market leadership with its 10Gbps Fiber offer. Five
million 5G customers, 5G ULTRA rolled out across more than 4,500 towns and cities at
speeds of up to 2Gbps, and priority for web browsing.
The most comprehensive Fiber + TV bundle on the market
Drive on convergence, with cross benefits for TIM’s fixed and/or mobile customers
New TIM WiFi Casa, Fiber and 5G ULTRA offering, with the best in TV content included
TIM Fiber connectivity even in rural towns and villages (“white” areas), with
ultrabroadband network infrastructure extended to bring TIM fiber directly to
customers’ homes
We’ve launched FWA 5G with speeds up to 300Mbps for a better streaming experience,
letting you stream content even in places where fiber broadband can’t reach
Consumer
TIM further consolidated its technological leadership in 2024, offering Fiber connections of up to 10 Gigabits per
second (XGS-PON), thus ensuring top-of-the-range connectivity and meeting the growing needs of customers
by bringing cutting-edge technology into more homes.
Our consumer portfolio has been streamlined with our new TIM WiFi Casa offering, which brings simpler, more
intuitive and on-demand algorithms and customer service, giving consumers an all-in-one solution in choosing
their setup, content and products, all on advantageous terms.
TIM WiFi Casa also comes with the latest generation TIM HUB Pro modem(WiFi 7), ensuring a powerful, stable,
secure connection in every corner of the house for the ultimate browsing experience.
In addition, the collaboration with Open Fiber means that TIM WiFi Casa is now available in small towns and
villages classed as “White” Areas, with specialist technicians working to provide quality assistance at all stages
of activation.
In 2024, TIM launched 5G FWA, which is based on a complementary logic to the nationwide portfolio to ensure
the best connectivity and service experience for customers. With the launch of its new TIM WiFi Casa offering,
all of the benefits and options of the new TIM portfolio can also be enjoyed in non-Fiber covered areas with
FWA technology.
A particular commercial push was given throughout 2024 to “ultra-convergence” by implementing packages
integrating Fixed – Mobile – content – products – services, as a lever for loyalty and meeting customers’ needs.
Report on Operations of the
TIM Group
Main Commercial Developments
29
In addition, the customer experience of converged customers has also been further improved thanks to TIM
Unica Power, which has been enhanced with dedicated promotions (e.g., family content packages with
favorable prices, discounted products and smartphones, etc.).
Finally, in the second half of 2024, actions were also taken locally with targeted promotions and
communications in areas of increased competition.
On the mobile front, TIM continued to support the development of Ultra Broadband during 2024, reaching 5
million customers with active 5G and extending 5G ULTRA coverage to more than 4,500 towns and cities at
speeds of up to 2 Gigabits per second.
A new 5G profile has also been defined for speeds of up to 250Mbps, aimed at spreading 5G more quickly so as
to improve quality for TIM mobile customers.
TIM’s technological leadership is a crucial competitive advantage, enabling it to stand out in a highly
competitive market. The distinctive quality of TIM’s network has allowed the company to pursue a “value”-
oriented strategy and helped it to forge a premium position in the market. Evidence of this can be seen from
the numerous promotional and outreach initiatives connected with 5G ULTRA.
In 2024, TIM’s device portfolio – while continuing to be dominated by the smartphone segment, with a portfolio
largely focused on 5G references and with the launch of new products from the market’s leading brands –
expanded its offering in the “House of Device” product category (launched in 2023), as it further enhanced and
diversified the purchasing opportunities available to customers by introducing new brands and formats. In
addition, the focus on wearables that was evident in 2023 continued, while new technologically innovative
and distinctive market products were also pursued in line with the company’s diversification strategy, which
aims to attract new customer segments and to counteract the shrinking smartphone market.
In this context, the most relevant categories are:
■
Dyson: this was the biggest new entry in the “House of Device” category in 2024. Marketing of its varied
product portfolio began in the second half of the year with the aim of growing opportunities in installment-
plan sales;
■
Wearables, particularly Samsung and Apple, with +220% YoY growth. The year also saw the launch of the
Smart Ring, an innovative new product that allows gesture-controlled digital POS payments and
constant biometric monitoring;
■
Nintendo, whose product portfolio and brand have expanded TIM’s possibilities in the world of gaming
consoles. Nintendo thus joins PlayStation 5, which has also been expanded with new models and
packaging offered to customers, on TIM’s device portfolio. These are aimed at expanding the market’s
potential target audience and continuing the hype experienced in 2023;
■
Smart TV, a category which was also consolidated by launching a new brand to round of the products
offered in the category, thus elevating competitiveness and widening the target customer base.
The success in marketing these new products was primarily made possible by consolidating and developing
the sales policies for the devices financed through TIMFin, the joint venture with Santander Consumer Bank.
Growth in handset financing for Fixed and Mobile lines is central to TIM’s policy of harnessing the value of
TIM’s Customer Base, with the churn of lines with handset financing now -42% lower than lines without
handset financing (figure relates to mobile lines only).
Therefore, TIM continued to invest in developing new ways of selling financed devices throughout 2024, helped
in part by the important partnerships formed with major brands in the smartphone market.
The most notable were as follows:
■
TIM Next Evolution: unique among operators in Italy, TIM’s Next Evolution platform allows customers to
purchase Apple products (iPhone, Apple Watch, iPad) in interest-free installments with an immediate
discount equal to the guaranteed future value of the product at the end of the financing period. An
additional discount is also given against used iPhones;
■
possibility for points of sale to finance products directly from TIM warehouses, without the need to
physically have the product; this feature, available since July 2023 and further developed in 2024, is
particularly useful for bulky products(e.g. smart TVs), to maximize sales during product shortages in the
market and to make the full range of TIM portfolio products available to all customers at all points of sale.
The feature contributed to TIM’s success on the launch of the new iPhone 16);
■
21% growth in the financing of mid- to low-end products – a market with ample room for growth;
■
formation of new, increasingly segmented offers, aimed both at encouraging new Fixed and Mobile
customers to join TIM and at triggering reward mechanisms for the valuable Customer Base;
■
new Digital Customer Journey and simplification of the in-store Sales Journey;
■
evolution of TIM/TIMFin systems and processes with the aims of minimizing time to market, reducing
onboarding time, and generating evolved risk containment logics.
These new features are available for all product categories and, together with the push into new channels,
they have contributed to +8% YoY financing growth in the face of a declining trend in the Italian smartphone
market (source: GfK).
There has been continued growth in the financed smartphone related services offered in partnership with
TIMFin:
■
“TIMFin Assicura Smartphone” (insurance covering the repair or replacement of smartphones in case of
accidental damage and/or theft) – in 2024, policies were sold on 30% of financed smartphones, an
increase of 12 percentage points compared to 2023. In December 2024, it also became possible to insure
other produce types (besides smartphones) as well as products purchased in a single payment.
Report on Operations of the
TIM Group
Main Commercial Developments
30
■
“TIM Revalue Smartphone”, the trade-in program developed with sustainability and convenience in mind,
which lets TIM hand in a used smartphone for a discount on a new one – customers used this scheme in
8% of new smartphone financings; in December 2024, this service was also extended to other product
categories (e.g., smart watches, gaming consoles, etc.).
TIM’s distribution network offers extensive coverage with around 3,000 TIMFin-affiliated dealers and more than
4,000 points of sale (PoS) nationwide.
The main activity is smartphone financing, but other (no-sim) devices for which TIM offers installments have
also been added, including TVs, PlayStations, Nintendo, and Dyson products.
The TIMFin financing process is completely digital and is incorporated in the IT system made available by TIM
to its sales network. The process uses OCR (Optical Character Recognition) tools for document capture,
including scoring algorithms to immediately assess customers and OTP (One-Time-Password) technology to
formalize contracts electronically. The process is completely paperless, giving customers an innovative digital
journey. In addition to device financing, TIMFin points of sales also offer insurance plans to protect against
theft and accidental breakage, as well as accepting trade-ins of used devices, where customers can have their
old devices valued immediately to obtain a reduction on the price of their new phone even when paying in
installments.
In short, the main data of TIMFin in 2024:
■
437 thousand loans were transacted for the purchase of devices during 2024, up 6.6% on the previous year;
Of these, around 65 thousand loans were granted on electronics (non-smartphones) items;
■
109,756 insurance policies were entered into alongside the device financing, up more than 44% on 2023;
27,637 used devices were traded in, a three-fold increase on 2023;
■
3200 personal loans were offered to TIM customers (up from 2000 in 2023) for a total value of around 33
million, up 65% on the previous year.
In addition, in order to guarantee a distinctive position, TIM has continued to promote and improve its portfolio
of digital services by rolling them out to the Fixed Customer Base: TIM Safe Browsing, TIM PEC, SPID, Cloud
service in partnership with Google, TIM One Number, Smart mobility, and Insurance (new policies such as TIM
in Viaggio, Sport, and Kasko for smartphones sold in cash have been made available). Also in 2024, TIM Voce
WiFi (a calling service that uses a Wi-Fi connection to let you call a smartphone even when there is no mobile
coverage) was automatically made available on all iPhones. The e-SIM digitization process also made progress
in 2024, with card replacement, new line sales and MNP procedures all available from the tim.it website. QR
codes in stores have also been made paperless in stores; customers now receive emails containing a QR code.
Small and Medium Business Segment
In 2024, TIM constructed an added-value “Business Grade” Fiber portfolio, which is customizable by way of
options which address specific business needs such as bonding, Premium Support, data back-up, cybersecurity,
and digital marketing.
In terms of Guaranteed Bandwidth and VoIP professional connectivity solutions for the Small and Medium
Enterprise market, the second half of the year saw TIM further develop the TIM Comunica portfolio, thus
helping businesses to digitalize with an advanced, flexible and reliable communication solution that increases
their productivity and enables smart working and team working.
The mobile portfolio has been revamped, with a greater role for unlimited data plans and the inclusion of
roaming across 16 non-EU countries becoming a distinctive feature of the top-of-the-range plan.
A dedicated offering for New Businesses was also launched, facilitating business start-ups by providing
benefits on fixed and mobile connectivity and specific ICT services. In the second half of the year, a Local
offering was also placed on the market; this is the first example of geomarketing being used to selectively seize
growth opportunities in certain areas of the country.
By reviewing and enhancing the functionality of digital properties, there have been improvements in customer
loyalty, the digital experience (through the introduction of self features), and business volumes.
A reorientation of the agency network to harness higher-value customers and market high-end ICT services
has been accompanied by a strengthening of the digital channel and growth in in-store acquisitions.
Data driven management of the customer base
One of the cornerstones of TIM’s strategy comes consists in developing value and safeguarding the Customer
Base from a data-driven perspective, with the aim of maximizing revenue and continuing the ongoing CVM
ecosystem transformation plan. Developments in this field allow for the further development of campaign
management logics through the scaling-up of machine learning tools and real time data so as to increase the
effectiveness and personalization of commercial actions.
Report on Operations of the
TIM Group
Main Commercial Developments
31
Consumer
With a view to the “Volume to Value” positioning strategy, the 2024 CVM actions are oriented towards
increasing the share of wallet of the Customer Base.
The cross-selling initiatives, with particular emphasis on TIM Unica and Content, are a key element in
increasing the penetration of the convergent. For Mobile Only or Fixed Only customers, the introduction of new
offers and increasingly differentiated benefits on a needs basis has continued to help increase the value of the
Customer Base and prevent churn.
Another important aspect was the increase in fiber-to-the-home (FTTH) penetration as part of a dedicated
action plan to upgrade technology through customized campaigns which also used the Customer Data
Platform.
Supporting the Mobile ARPU in 2024, the Upselling Core business was strengthened through the use of
increasingly targeted multichannel private pricing models.
Also as part of the “Volume to Value” strategy, price repositioning actions continued across part of the fixed
and mobile customer base, resulting in an increase in ARPU in both fixed and mobile services. This had limited
impacts on churn rate thanks to having a churn management plan in place, which involved reviewing
processes and actions in real time to optimize their effectiveness.
Small and Medium Business Segment
In order to support the Customer Base ARPU and to maximize revenues, actions were carried out in 2024 to
refine campaign management tools on the one hand, and introduce new campaigns for customer advocacy
and to develop the upselling business on the other.
Safeguarding the Customer Base
■
Churn management tools were further refined with improved predictors based on big-data analytics, thus
allowing actions to focus on higher-risk customer clusters.
■
Selling propositions were optimized to reduce impacts on revenue: customer management efforts used
offer selling and behavioral triggers to generate customized caring actions with a view to resolving
customer-specific problems.
■
A new “quick-response” management model was launched for higher-risk customers, with direct handover
to a high-skill back office operator. The new process reduces time and increases redemption, resulting in
more effective action.
■
In 2024, the process of shutting down old copper exchanges commenced, with customers migrated to
TIM’s new ultrabroadband technologies that improve the customer experience and reduce churn. This
started with a few exchanges to test tools and processes that maximize customer satisfaction and
minimize economic impacts for TIM.
■
Dedicated customer management actions were launched with vouchers expiring in 2024 which the
government had made available to push fiber penetration among Italian small and medium-sized
businesses. The customers concerned saw their billing amounts increase when the expiry date arrived and
suffered targeted attacks from competitors. The action was carried out both inbound (for customers
calling to complain about the price change) and outbound (for the most critical cases).
■
Actions were reinforced to increasing the number of customers paying by direct debit, through dedicated
campaigns and process improvement. Direct debit is one of the most relevant drivers for improving churn.
■
Improved processes and tools to enhance the SMB customer experience, with a particular focus on the
largest customers with sales portfolios. This has involved constant fine-tuning both of selecting the highest
value customers and of the commissioning and management tools.
Upselling
■
The Insight Sales model was launched which, for customer care, uses internal sales cores with dedicated
offers and clusters to increase campaign effectiveness.
■
Unlimited-giga sales increased in upselling on the Mobile Customer Base with the use of campaign
management automation tools.
■
Dedicated sales actions were developed according to the market shares of the TIM Business in each
province, with involvement of the sales force.
■
Customer Base repositioning actions continued among higher-value and higher-content offerings to
support ARPU, both in mobile and fixed.
Digital services: New content delivery model, turnkey ICT solutions and
new innovative services
Consumer
Also in 2024, audiovisual content maintained and strengthened its decisive role in supporting TIM’s positioning.
TIMVISION further consolidated its position as the main aggregator of sports and entertainment content on
the Italian television market, thanks to: ongoing agreements with the main operators on the national and
international market in light of important contract renewals; increasing integration with fixed/mobile/device
offerings with the launch of Fiber-bundled (TIM Wifi Home and TV) and mobile-bundled packages (TIM
Mobile and TV) in June, followed by the world of devices in December; and, finally, to the launch of new
package offers that made the TIMVISION portfolio even more comprehensive, convenient and responsive to
customers’ multiple needs.
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Main Commercial Developments
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In 2024, TIMVISION’s offering was supported by the following editorial and partnership agreements: for sport,
the partnership with DAZN (renewed at the end of 2023 for another 5 years) was further strengthened thanks
to the rebroadcasting on TIMVISION of two big matches from Serie A Enilive entirely for free (free-to-air
football is back in Italian homes for the first time in 25 years). In addition, the extension of the agreement with
Warner Bros. Discovery in May means that all Eurosport sports content remains available on TIMVISION.
Consequently, in 2024, full coverage was offered of the Paris Olympic Games and Roland Garros tennis, with
major live events viewable in 4k. As for entertainment, in addition to the constantly updated offering films and
TV series – thanks to the agreement with Warner Bros. Discovery and the renewal of the agreements with RTI
and La7 S.p.A. – two new linear channels (Warner TV and CNN International) are now available on TIMVISION
(in addition to all Discovery+, Mediaset and La7 channels), with all content aired within the past seven days
available on-demand and ad-free.
In addition to the various formulas of fiber, mobile and device bundles, the year also saw new offerings in
football and other sports with the launch in June of annual deferred subscriptions (alongside monthly
subscriptions) and the TIMVISION Calcio and Sport Light package. This package was launched in July and
includes the new DAZN Goal Pass tier (3 matches per Serie A TIM matchday, the co-exclusive airing of 4 big
matches per season plus all of Serie BKT). In addition, in October the portfolio was bolstered with the addition
of the TIMVISION Family package, which includes DAZN Goal Pass, Disney+, Netflix and Amazon Prime.
In terms of service user interface, the Store returned to its rightful place on the Top Level Menu of the various
windows in 2024, with credit card purchases also permitted. Partner consent was also made directly
accessible from TIMVISION on devices other than TIMVISION Boxes, such as web and mobile; deep-links were
used for this purpose to maximize the service’s aggregating role and to help customers appreciate the value
for money offered by TIMVISION.
Small and Medium Business
During 2024, TIM Business continued to work on simplifying and enhancing the portfolio of ICT solutions
through the long-standing partnership built up with the top players on the market. These solutions aimed to
meet evolving customer needs in the following areas:
■
IT Security
•
launched TIM Verify Security in partnership with Telsy to support customers in assessing how well
they are protected from cyber risks, helped to improve the security setup by identifying weaknesses
and designed a cyber strategy; the Advanced version also includes a dedicated cyber SOS channel in
case of attacks and a legal protection service;
•
launched TIM Guardian, a new fixed and mobile browsing protection platform which allows
customers to easily customize their own security policy settings, with a monitoring dashboard where
users can access information about all security events;
•
extended the Vulnerability Assessment and Penetration Test services to the Small and Business
segment, enabling customers to assess the vulnerability of their IT assets through targeted analysis
and identify security problems by simulating real hacker attacks on the customer’s network;
■
cloud & collaboration thanks to partnerships with Google and Microsoft for the provision of cloud
computing, storage, data backup, collaboration and business productivity solutions, further enhanced with
AI solutions;
■
digital marketing, with the introduction of AI-based solutions to make services more effective and easier
to use. The new solutions offer advanced tools for creating and optimizing websites and e-commerce sites.
They also provide enhanced services for the automated management of social media pages and
advertising campaigns by leveraging AI to create dynamic and optimized content in real time, thus
fostering engagement and loyalty;
■
IoT with solutions for geolocation/tracking of company fleets, performance monitoring and predictive
maintenance of company vehicles.
Enterprise
During 2024, TIM confirmed its leadership role in the Italian market of Large Businesses and Public
Administration by registering a commercial performance above the market average in high-potential, high-
development segments. To do so, TIM leveraged its ability to bring innovation into the market in all five of its
main business areas (fixed TLC, mobile TLC, cloud computing and IT services, cyber security and IoT), helped
out by the Group’s factories: Noovle for cloud and data centers, Telsy for cyber services, Olivetti for IoT, big
data, smart cities and smart metering, and Trust Technologies for digital identity.
In this respect,, TIM strengthened its vertical competencies in the areas of IoT and cyber security during the
year thanks to M&A transactions such as Olivetti’s absorption of Staer Sistemi, a company that specializes in
developing systems for field data capture in strategic sectors such as energy, water and infrastructure
monitoring, in addition to the increased shareholdings in Mindicity, which specializes in the smart cities sector,
and QTI, which specializes in quantum cryptography.
The commercial performance of TIM Enterprise continued the virtuous path of revenue growth of recent years,
with a mix of revenues from services further shifted towards the IT sector, which has steadily exceeded 60%, in
addition to the stability of traditional revenues from TLC.
Particularly significant growth was registered in the Cyber Security line of business, which outperformed
growth in the reference market more than three times over with a YoY increase of more than 50%. This
performance was aided by key Conventions and Consip Framework Agreements, as well as the launch of TIM
Guardian, a network-integrated solution made available to the private enterprise market to protect customers’
mobile and fixed connectivity.
Also in the area of Cyber Security, TIM has fostered numerous opportunities for grassroots meetings on the
impacts of NIS2, working together with local authorities, associations and government institutions (including
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Main Commercial Developments
33
the Italian Cyber Security Agency) to raise awareness and pass on technologies that will benefit the industry
and government.
In 2024, the activities of the National Strategic Pole – of which TIM is the main partner and technological
enabler – experienced higher-than-expected growth both in terms of volumes of projects and customer
signups and in terms of revenues, thanks to a wave of funding made available to public bodies from the
Department for Digital Transformation, with more than 450 public bodies having joined up, thus achieving the
NRRP target.
TIM’s multicloud value proposition – in particular on IaaS, in which TIM Enterprise confirmed its leadership – has
allowed it to maintain a growth rate of more than 22% on the overall market. This performance was aided by
the launch of the new TIM Cloud Flex hybrid cloud offering, TIM Enterprise’s cloud services platform developed
especially for enterprises in order to offer high security and reliability standards, including the Italian Cyber
Security Agency’s QI2 qualification.
TIM has also demonstrated its excellence, exclusivity and capacity for innovation in the Italian market in
innovative areas, such as 5G and the Internet of Things: this journey began with Xtended Reality tours of the
Santa Croce Museum and Basilica, and has continued through other projects aimed at enhancing cultural
heritage experiences in 5G and Virtual Reality, such as at 2024 Taormina Book Festival and at the Ducati
Museum.
TIM’s co-innovation capacity has also been made available to the market according to open innovation and co-
innovation models, through participation in technology transfer centers, such as the five highly specialized
Competence Centers and the European Digital Innovation Hub (in which TIM participates), in addition to the
Customer Innovation Center, which was expanded in 2024 at the OGR Torino building in partnership con
Google Cloud and which has a strong focus on Artificial Intelligence.
TIM’s role as the digital driving force for Italy’s industry and public sector is further underlined by TIM’s
continued high-level investments in significant, widespread infrastructure. In November, TIM announced
strategic investment of around 130 million euros to support the growth of TIM Enterprise in the Cloud sector
and to build a new 25 MW state-of-the-art Data Center near Rome by the end of 2026. The center is intended
to support the growth of the National Strategic Hub, to meet global Hyperscaler requirements, and to host
high-performance Graphic Processing Unit (GPU) hardware for Artificial Intelligence applications and quantum
cryptography equipment in order to provide maximum security in data transmission.
The new site will be designed and built in line with the highest reliability and safety standards (Rating 4), it will
have one of the best water consumption rates in the world, and it will be equipped with a rainwater recovery
system so as not to affect the consumption of the city waterworks. About 88% of waste generated during
construction is expected to be recycled.
Brazil
The year 2024 was marked by the consolidation of TIM as a leader in mobile coverage, primarily in the Network
Consistency Quality Index.
TIM strengthened its research into social development and digitalization in Brazil and, for the 18th consecutive
year, was selected for the Corporate Sustainability Index – ISE B3. TIM was, in addition, recognized for the
fourth consecutive year as one of the most diversified and inclusive companies globally, reaching the top
position among global telecommunications companies in the FTSE Russell D&I Index 2.
■
Marketing and brand positioning: TIM continues to strengthen brand credibility, supporting social
development and digitization in Brazil while developing the quality characteristics of the network. TIM
continues to position itself at the forefront of the company’s digital transformation. The brand slogan
“Immagina le possibilità” (Imagine the Possibilities) invites customers to see the future in a positive light
and demonstrates a commitment to support them as they face new challenges, opening up a world of
opportunities. To reinforce our brand’s positioning as a brand that values its customers and brings benefits
beyond just gigabytes of data, in 2024 TIM launched an innovative partnership with one of the world’s
largest brewers, AMBEV, through a summer campaign under the slogan “Get a Top-up”, offering exclusive
discounts for customers by turning prepaid credits into discounts on Zé Delivey (a beverage deliveryapp).
Similarly, starting in the second half of 2024, TIM innovated by initiating cashback payments to users’
current accounts via PIX (direct financial) transfers against top-ups made through its app.
■
Mobile phone offers: in 2024, we continued to improve our position among high-value consumers by
offering a variety of package deals including voice services, data and free access to certain applications, in
addition to value-added digital services (music, e-reading, video streaming). The targeting of this segment
hinges on a strategy of giving added value to the customer base and providing users with a premium,
personalized experience. 2024 was an exceptional year for our consumer market deals. With innovation in
our DNA, we launched TIM Pre XIP and extended our partnership with entertainment brands and
streaming services to our Controle plans.
■
Customer experience: we focus on improving returns on investment and maximizing the customer
experience, but we are also committed to playing our role in society by promoting environmental, social,
and governance initiatives that we believe will result in positive transformation for all stakeholders. During
2024 TIM covered all towns and cities in Brazil with 4G, ensuring 100% 4G technology nationwide, in
addition to the implementation of 5G coverage in more than 200 towns and cities, including all Brazilian
state capitals. As a result, TIM was awarded the first 5G Consistent Quality award by Open Signal.
■
Sales channels: there is always a high focus on channel productivity, segmentation and sales quality. In
2023, our main objectives were focused on increasing the share of proprietary channels, advancing the e-
commerce internalization process, and redesigning the MEU TIM app to strategically improve the customer
experience, broaden the customer base, users and enhance their digital journey. In 2024, we successfully
implemented the second phase, which includes new features related to activation, portability and E-SIM
processes, completely eliminating dependence on all external vendors. In 2024, we completed the
development of the MEU TIM app. We have successfully completed the initial phase of transferring the
operations and e-commerce system in-house, eliminating dependence on external vendors. This change
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Main Commercial Developments
34
produced a new sales record and a significant improvement in unassisted sales channels. Our main goal is
to improve the customer journey by prioritizing conversion rate optimization.
■
Residential market: in 2024 migrating customers from FTTC to FTTH continued, in order to maximize
customer experience and profitability, while consolidating the asset-light model to expand the presence
through neutral network partnerships such as the one with I-Systems. TIM has taken a more selective
approach to FTTH, focusing more on the profitability of the operation.
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Main Commercial Developments
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MAIN CHANGES IN THE REGULATORY
FRAMEWORK
Domestic
Below are the main updates to the domestic regulatory context that occurred during 2024.
With regard to antitrust proceedings, please refer to the Note “Disputes and pending legal actions, other
information, commitments and guarantees” to the Consolidated Financial Statements at December 31, 2024
of the TIM Group.
European regulations
Intra-European roaming regulation
The Roaming Regulation 2022/612, which came into force on July 1, 2022, extends the advantages of roaming
at national tariffs to European travelers within the European Union (Roam Like At Home) through to 2032 and
introduces additional advantages and protection for consumers:
■
quality of service: roaming providers shall be obliged to offer the same quality of service in roaming as is
available nationally, if the same conditions are available on the network in the destination country;
■
better access to and free emergency services;
■
greater transparency regarding costs of added-value services;
■
greater transparency regarding the costs of roaming on non-terrestrial mobile networks (ships and
aircraft).
In addition, a further reduction is envisaged of the wholesale maximums to guarantee sustainability for
operators:
2022
2023
2024
2025
2026
2027
voice
€cent/min
2.2
2.2
2.2
1.9
1.9
1.9
SMS
€cent/SMS
0.4
0.4
0.4
0.3
0.3
0.3
data
€cent/GB
2
1.8
1.55
1.3
1.1
1
The regulation requires the European Commission to assess the measures relating to intra-EU communication
(calls and SMSs from one’s own country to another Member State) and verify if, and to what extent, the
current caps (0.19 euros per minute for calls and 0.06 euros for SMS messages) should be reduced to protect
consumers after 2024. A new measure concerning intra-EU communication was inserted into the Gigabit
Infrastructure Act extending the application of caps. Surcharges will eventually be abolished for consumers
from 2029. By the end of 2024, the Commission should have adopted fair-use rules to allow operators to bring
forward the end of voluntary surcharges to 2025. By June 30, 2027, the Commission is to assess the impact of
the measure and propose any changes necessary.
2030 Policy Programme “Path to the Digital Decade”
On December 19, 2022, Decision (EU) 2022/2481 of December 14, 2022 was published in the Official Journal of
the European Union, instituting the strategic program for the 2030 digital decade. The decision came into force
on January 9, 2023.
The decision partly redefines the digital objectives of the Communication from the European Commission COM
(2021) 118 final of March 9, 2021 (the “Digital Compass” Communication):
■
a digitally skilled population and highly skilled digital professionals with the aim of achieving gender
balance: at least 80% of the population with basic digital skills and 20 million ICT specialists employed in
the EU;
■
secure, resilient, performant, sustainable digital infrastructures: in particular, the aims of Gigabit coverage
to the termination point for all end-users of fixed networks and coverage of all inhabited zones with next
generation, high-speed wireless networks offering performance at least equivalent to 5G and to install at
least 10,000 peripheral nodes with zero climate impact and that are highly secure, distributed in such a
way as to guarantee access to low latency data services (a few milliseconds) wherever the enterprises are
located;
■
digital transformation of businesses: at least 75% of businesses use cloud computing and/or big data and/
or artificial intelligence; basic digital intensity level for at least 90% of the SMEs and doubling up of the
number of unicorn (innovative) businesses;
■
digitalization of public services: 100% of online digital public services; 100% of citizens with access to the
electronic health files and digital identity.
The decision also envisages an annual cooperation mechanism with the Member States, which consists of:
■
a structured, transparent and shared monitoring system based on the Digital Economy and Society Index
(DESI) to measure progress towards each of the 2030 objectives, a system of key performance indicators
(KPIs) defined by the Commission on June 30, 2023 through enforcement deed C(2023) 4288 final;
■
an annual report on the status of the digital decade, in which the Commission will assess progress and the
roadmap of member States, and will recommend actions. The first report was published by the
Commission on September 27, 2023 together with Communication C(2023) 7500 final which sets out
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expected trends at the level of Union for Digital Objectives). The second report was published on July 2,
2024, with Communication C(2024) 260 final.
State aid for broadband networks
On December 12, 2022, the European Commission adopted the new guidelines on State aid for Broadband
networks (Communication C(2022) 9343 final), which revise the previous 2013 guidelines, in particular:
■
market failure is redefined for the fixed networks and can now exist where the market is unable to supply
and it is unlikely to supply end users with a speed of at least 1 Gbps in download/150 Mbps in upload. In
black areas (with at least two fixed networks and at least 100 Mbps), the aid may be authorized if none of
the networks present (or credibly planned) reach at least 300 Mbps in download;
■
specific guidelines are given for mobile networks, where a market failure can exist in areas where a mobile
network is not present or not credibly planned that can satisfy the needs of end users (including for specific
use cases). In the event of legal obligations (e.g. connected with rights to use the radio spectrum), aid may
be granted to cover only the additional costs linked to improving quality of service;
■
guidelines are introduced regarding state aid in support of demand (vouchers) divided up into two
categories: social vouchers intended for specific categories of users (e.g. low income) to acquire or
maintain a Broadband connection; Internet connectivity vouchers, which may be designed for broader
categories of end users to incentivize demand, thereby excluding grants to maintain an existing service.
The Commission also adopted on June 23, 2023 Regulation C(2023) 4278 final amending the General Block
Exemption Regulation (Regulation (EU) No 651/2014) which identifies state aid cases which are exempt from
notification to the European Commission.
On December 13, 2023, the European Commission adopted two Regulations, in force from January 1, 2024 to
December 31, 2030, amending the Regulations to exempt small amounts of aid from EU state aid control,
since they do not impact competition and trade in the Single Market:
■
De minimis Regulation: The ceiling per company is increased from 200,000 euros (applicable since 2008) to
300,000 euros over three years;
■
SGEI de minimis Regulation: The ceiling per company for Services of General Economic interest is increased
from 500,000 euros (applicable since 2012) to 750,000 euros over three years.
Both regulations also introduce an obligation for member States to register de minimis aid in a central register
set at national or EU level as of January 1, 2026, thereby reducing the reporting obligations for companies.
Digital Services Act (DSA)
On October 27, 2022, the text of the Digital Services Act (or “DSA”, Regulation (EU) 2022/2065 of the European
Parliament and of the Council of October 19, 2022 on a Single Market For Digital Services. The new Regulation
aims to create a harmonized framework on an EU level of the specific obligations of diligence for certain
intermediate service supplies, guaranteeing respect for the rights of on-line service users residing in the EU,
regardless of the supplier’s origin. Most of the provisions came into operation on February 17, 2024.
The addressees of the provision are suppliers of “Intermediate services” (“Mere conduit”, “Caching”, “Hosting”,
on-line intermediation platforms and large on-line platforms and search engines with more than 45 million
users operating monthly). Different, gradually increasing obligations are envisaged depending on the type and
size of the suppliers. The obligations envisaged include, for example, that of guaranteeing specific contact
points, internal complaints management systems, any amicable resolution of disputes, preferential
management for "reliable reporters", measures against repeated abuse, the traceability and transparent
annual reports. Sanctions in the event of breach can be as high as 6% of turnover.
European Accessibility Act (EAA)
In June 2025, the first obligations will come into effect concerning the implementation of Directive (EU)
2019/882 of the European Parliament and of the Council of April 17, 2019, on accessibility requirements for
products and services (European Accessibility Act - EAA), which has already been transposed in Italy by
Legislative Decree no. 82 of May 27, 2022.
This act protects people with disabilities, such as hearing impairments, by imposing certain obligations on
service providers (e.g. real-time text for customer care and emergency services).
Network and Information System Directive (NIS2)
The new Directive 2022/2555 (NIS2), which replaces Directive 2016/1148 (NIS) came into force on January 16,
2023 and was transposed into national systems by October 17, 2024, entering into effect on October 18, 2024.
The NIS2 envisages an extension of the scope of application of these laws governing the security of networks
and computer systems, including on the one hand, sectors currently covered by other rules, which are
simultaneously abrogated (i.e. the security measures of electronic communication services and networks,
currently included in the European Electronic Communications Code) and, on the other, extending the rules to
new subjects (e.g. data centers, CDN, etc.).
The Directive maintains the obligation to adopt security measures that are commensurate to the risk, yet
introduces a series of minimum requirements, including security management of the procurement chain and
reviews the mandatory notification procedures of IT incidents.
Sanctions in the event of breach can be as high as 2% of turnover.
The Directive also envisages the strengthening of the bodies and supervisory bodies on a Community level,
with the aim of improving collaboration to fight the global IT threat, thanks to the sharing of experience by
Member States.
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Cyber Resilience Act (CRA)
The new Regulation (EU) 2024/2847 (Cyber Resilience Act - CRA) came into force on December 10, 2024 and
will be applicable from December 11, 2027, with the exception of some measures that will take effect as early
as June 11, 2026 or September 11, 2026.
The CRA will improve the level of cybersecurity of digital products, as it introduces proportionate mandatory
cybersecurity requirements for all connected products, from baby monitors, smartwatches and computer
games, to firewalls and routers. The regulation takes a risk-based approach, with different security
requirements associated with different levels of risk. The Commission estimated that less than 10% of products
will be subject to the most onerous obligations, which include third-party certifications of conformity.
Once the CRA comes into force, hardware and software manufacturers will have to implement cybersecurity
measures for the entire life cycle of the product, from the early stages of design and development, to the
placing of the product on the market and for at least 5 years unless the declared lifespan of the product is less.
All products placed on the EU market will have to bear the CE marking to ensure their compliance with the
CRA.
Data Act
Regulation (EU) 2023/2854 (the Data Act), which introduces harmonized rules on fair access to data and its
use, entered into force on January 11, 2024 and will be directly applicable starting from September 12, 2025.
The act covers several areas:
Business to Business
First, it aims to ensure fairness in the allocation of the value of data generated by connected devices among
actors in the data economy. The Regulation provides for a shared right in the use of data between the
manufacturer and the user of connected devices, allowing the latter to access – without undue delay and free
of charge – the data generated by the device and to share such data with third parties to provide after-sales
services or other innovative services based on them.
However, the Data Act provides that the circulation of data between companies may require the payment of a
reasonable and non-discriminatory price which includes the cost of making it available and the investments
made for the collection and production of such data.
The Data Act also recognizes that some data may represent trade secrets, the circulation of which would harm
the interests and proprietary rights of companies. The text of the regulation has therefore introduced a series
of provisions aimed at protecting this information.
Business to Government
The regulation also aims to promote the use of data held by private companies by public sector bodies in
emergency situations, such as health emergencies or serious natural disasters, and in other exceptional cases,
where it is not possible to find the data on the market and the lack of such data prevents the public entity from
carrying out a specific task of public interest provided for by law. Data sharing in emergency situations must be
carried out free of charge, while in the remaining exceptional cases private entities will be entitled to
reasonable compensation.
Cloud Services
The regulation introduces interoperability requirements for data processing services – such as cloud or edge
computing services – aimed at preventing vendor lock-in phenomena and facilitating the possibility for users to
switch to a new supplier.
Furthermore, the Data Act offers specific safeguards to prevent unlawful transfers of non-personal data held
by cloud service providers to third countries that conflict with data protection obligations under EU or Member
State law.
Artificial Intelligence
The new EU Artificial Intelligence Act (AI Act) came into force on August 2, 2024 and will apply from August 2,
2026. The Act follows a “risk-based” approach, meaning that the higher the level of risk, the greater the
responsibilities and limitations for developers and users.
The new legislation aims to promote the development and adoption of secure and reliable AI systems
throughout the EU single market by public and private actors. At the same time, it aims to ensure respect for
the fundamental rights of EU citizens and to stimulate investment and innovation in artificial intelligence in
Europe.
The AI Act classifies different types of artificial intelligence according to risk. The EU will ban AI systems
considered to carry an unacceptable risk (such as cognitive-behavioral manipulation, social scoring and
profiling-based predictive policing) and systems that use biometric data to classify people according to specific
categories such as ethnicity, religion and sexual orientation.
Instead, AI systems that are considered high-risk will be allowed, as long as they meet a number of
requirements and obligations for gaining access to the EU market. AI systems that present only a limited risk
are subject to very light transparency requirements. The AI Act also addresses the use of generic AI (GPAI)
models, whereby all systems are subject to transparency and collaboration requirements, with stricter rules for
GPAI systems that pose systemic risks.
In case of violations, the AI Act foresees sanctions of up to 7% of annual global turnover for prohibited systems
and up to 3% of annual global turnover for high-risk systems and GPAIs.
Connectivity package
The European Commission has adopted two measures aiming to promote connectivity and, in particular,
investments in the new Gigabit and 5G networks in order to help achieve the Digital Compass 2030 objectives.
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Main changes in the regulatory framework
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■
Gigabit Recommendation: On February 6, 2024, the Recommendation adopted a new Recommendation -
C(2024) 523 final - regarding the regulatory approach (obligations lying with the operator with Significant
Market Power, including rules for the decommissioning of branch networks) which the national regulatory
authorities should apply in analyzing the fixed access markets to promote Gigabit connectivity. The
Recommendation revises the 2010 NGA Recommendation and the Recommendation on the 2013 cost
methodologies and non-discrimination measures. On May 8, 2024, the EU “Gigabit Infrastructure
Act” (GIA) was published in the Official Journal. This “minimum harmonization” regulation which contains
measures to simplify and accelerate the deployment of very high capacity fixed and mobile networks (fiber
optic and 5G). The Regulation came into force on May 11, repealing Directive 2014/61/EU (transposed in
Italy by Legislative Decree 33/2016). Its provisions will apply directly in member states from November 12,
2025 (with some exceptions). The main provisions are as follows:
•
Symmetrical access to infrastructure: this obligation is extended to public non-network assets; there
is a new obligation for tenants of land to negotiate access to land in good faith; the principle of fairness
and reasonableness is better outlined - guidelines could also be adopted by the Commission in this
respect;
•
New building infrastructure and access to infrastructure: new buildings and buildings undergoing
major renovations for which building permit applications are submitted after February 12, 2026, must
be equipped with fiber-ready infrastructure and fiber cabling. BEREC is to adopt guidelines by
November 12, 2025 regarding access to vertical infrastructure on fair, reasonable and non-
discriminatory terms, including with regard to price;
•
Coordination of civil works: the obligation for public entities (in addition to private individuals) that
perform civil engineering works financed wholly or partially with public resources to accept
coordination requests. BEREC must adopt guidelines by November 12, 2025;
•
Permits to carry out network installation work: new measures (some of which already in place in
Italy) are being introduced to make it easier to obtain permits, including a silent mechanism consent
(or, by way of derogation, a conciliation mechanism), digitization of applications and a specification of
exemption categories, which are to be further specified by member States;
•
The GIA introduces a measure concerning intra-EU international calls (see previous section on the
Roaming Regulation).
Finally, on February 21, 2024, the European Commission published its “White Paper: How to master
Europe’s digital infrastructure needs?” (COM(2024) 81 final). This was undergoing public consultation until
June 30, 2024. The White Paper presents scenarios and proposals to reform the European regulatory
framework in order to support investment in new electronic communication networks (Gigabit and 5G); this
should subsequently lead to legislative reforms by the new European institutions.
■
White Paper "How to Master Europe's digital Infrastructure Needs: in the wake of last year's exploratory
consultation on the future of the connectivity sector, the European Commissioner for the Internal Market,
T. Breton, has published a white paper in which he analyzes the challenges Europe is facing in
implementing networks and presents possible scenarios for attracting investment, fostering innovation,
increasing security and creating a true digital single market. This is a policy document that will have to be
fleshed out in subsequent legislative acts of the incoming Commission. In particular, it should pave the way
for the “Digital Networks Act,” a legislative proposal to “redefine the DNA of EU regulation” in TLC matters.
Sustainability
CSRD (Corporate Sustainability Reporting Directive)
Directive (EU) 2022/2464 of the European Parliament and of the Council amends several previous Directives
(2013/34/EU, 2004/109/EC, 2006/43/EC, 2014/537/EU) on corporate sustainability reporting. This Directive is an
important step in ensuring that European companies actively contribute to sustainability and combatting
climate change through increased transparency and by reporting their environmental, social and governance
activities and impacts.
CSRD applies to large enterprises (public interest and non-public interest), listed SMEs and subsidiaries of non-
EU companies with annual net sales of at least 150 million euros in the EU.
CSRD lays down specific reporting requirements for companies:
■
Business model and strategy (resilience of the business model and strategy in relation to risks related to
sustainability matters, opportunities related to sustainability matters, how the business strategy will be
implemented, plans for transitioning to a sustainable economy);
■
Goals (time-bound targets related to sustainability matters and progress towards achieving them);
■
Management and supervisory bodies (with regard to the bodies’ sustainability-related roles and
competencies, and incentive schemes linked to ESG matters);
■
Policies (the undertaking’s policies in relation to sustainability matters);
■
Due diligence (due diligence processes with regard to sustainability matters);
■
Impacts, Risks and Opportunities (impacts, risks and opportunities related to sustainability matters, actions
taken to prevent or mitigate impacts, and ways of managing risks from a Double Materiality perspective:
information must be communicated with a dual perspective, i.e. both from the perspective of the impact of
the company's activities on people and the environment and from the perspective of the risk or
opportunity that such sustainability issues pose to the undertaking itself.
Taxonomy
The Taxonomy, established by EU Regulation 2020/852, sets out a unified classification system for sustainable
economic activities in Europe, with the aim of encouraging investments that have environmental and social
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39
objectives. It applies not only to financial market participants but also to non-financial companies required to
disclose sustainability information under CSRD (Corporate Sustainability Reporting Directive 2022/2464/EU).
The Taxonomy identifies 6 objectives: Climate change mitigation, Climate change adaptation, Sustainable use
and protection of water and marine resources, Transition to a circular economy, Pollution prevention and
reduction, Protection and restoration of biodiversity and ecosystems.
For each sector, the Taxonomy also identifies eligible economic activities that could make a substantial
contribution to one of the abovementioned 6 objectives, as well as aligned activities capable of meeting all
requirements specifically listed for it by the Taxonomy. An activity can only be declared to be effectively
aligned with the "Do Not Significant Harm" (DNSH) criteria and the Minimum Safeguards if it meets all of the
technical screening criteria.
The telecommunications sector is affected by the taxonomy as it applies to data centers and data-driven
solutions (IOT, Artificial Intelligence, etc.). The sector, through industry institutions, is putting forward a request
to include infrastructure as an eligible activity, as it is sustainable in itself because it is more energy efficient
and enables sustainable digital solutions.
The only obligations required by the Regulation for the year 2021 were to disclose eligible activities and their
indicators (turnover, CapEx and OpEx).
Instead, since 2022, it has been necessary to publish both Eligible and Aligned activities with respect to the first
two objectives of the Taxonomy (climate mitigation and adaptation) in terms of revenue, CapEx and OpEx, and
from 2024 for the remaining four environmental objectives as well.
For more details, please refer to the 2024 TIM Group Sustainability Statement section.
Wholesale fixed-line markets
Fixed network access market analysis
On April 30, 2024, AGCOM issued its final decision (resolution no. 114/24/CONS) concerning the coordinated
analysis of access markets. The measure introduces some important changes to the regulatory framework for
accessing fixed networks, in anticipation of TIM’s transition from a vertically integrated model to a vertically
separated ownership model of FiberCop/NetCo and TIM/ServCo, which will entail a major overhaul of the
regulatory framework.
First, in order to promote migration to new technologies, the obligations to provide legacy bitstream and WLR
services (over the copper network) have been repealed. NetCo may ultimately continue to provide these
services, but only on a voluntary basis and on commercial terms.
The obligations to provide FTTC and FTTH bitstream services were also repealed in light of the effective
competitiveness of transport networks and bandwidth.
In this sense, regulating access has been focused on services for primary and secondary access networks: (SLU,
ULL, Semi-GPON, Full-GPON, VULA FTTC and VULA FTTH). This is in light of the anticipated rise in prices for
copper network services and FTTC from 2025 onwards, as well as the significant investments made by TIM and
then planned by FiberCop.
Charges (euros/month)
2023
2024
2025
2026
2027
2028
LLU
9.91
9.91
10.03
10.28
10.66
11.16
SLU
5.89
5.89
6.09
6.49
7.10
7.90
VULA-FTTC
13.07
13.07
13.18
13.00
13.74
14.18
VULA-H GPON
14.26
14.24
14.23
14.21
14.19
14.18
VULA-H XGS-PON
16.75
16.60
16.46
16.31
16.17
16.02
In addition, since other operators have also developed FTTH networks, geographic deregulation has been
introduced in some areas of Italy (areas accounting for around 15% of connected properties nationwide).
Specifically, in 14 towns and cities including Milan and Cagliari, (around 4.1% of connected properties
nationwide), TIM and – since July 1, 2024 – FiberCop is no longer an operator with Significant Market Power
(SPM), meaning that their regulated pricing obligations no longer apply. Furthermore, another 95 towns and
cities (around 10.5% of connected properties nationwide) are defined as “contestable”, meaning that sufficient
competition has been identified for the “cost orientation” pricing obligation affecting VULA FTTC, VULA FTTH
and Semi-VULA services to no longer apply. As a result, these services can be offered in “contestable”
municipalities under commercial policies that are independently drawn up by FiberCop, albeit in accordance
with principles of “fairness and reasonableness.”
Nevertheless, this principle of fair and reasonable prices will apply nationwide for passive services over the
FTTH network (Semi-GPON and Full-GPON).
Finally, the Authority has simplified the rules for the decommissioning of FiberCop’s copper-network legacy
services. Specifically, it has reduced the period for the closure of “bypass” exchanges that are to be
incorporated into larger exchanges to just 18/24 months (made up of a total notice period of 6/12 months plus
a migration period of 12 months). As part of this scheme, access network exchanges will fall in number from
around 10,500 to approximately 3,800).
Voluntary separation of ownership of TIM’s fixed access network
On July 1, 2024, TIM closed the sale of NetCo to KKR through the transfer to FiberCop (previously a 58%-owned
subsidiary of TIM) of TIM’s fixed network infrastructure and wholesale activities business unit, and the
subsequent acquisition by Optics BidCo (an indirect subsidiary of a KKR-managed fund) of the entire share
capital of FiberCop. For more details, please refer to the section “Sale of NetCo” section of this Report on
Operations.
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The regulatory framework set out by resolution no. 114/24/CONS will be reviewed subject to a new market
analysis, carried out by AGCOM in Resolution no. 315/24/CONS, following the closing of the NetCo sale
transaction. The new market analysis is expected to be completed in the fourth quarter of 2025.
Infratel Tenders for the subsidizing of Ultrabroadband networks
5G mobility plan: Milan - Cortina 2026 tunnel coverage
Among the actions included in the 5G Coverage Strategy is an action to ensure continuity of 5G services along
the main road links between Olympic Games venues at “Milan - Cortina 2026”.
On January 14, 2024, Infratel launched a new consultation, due to end on February 20, 2024, into providing 5G
coverage to the tunnels situated along the main roads connecting the venues of the “Milan - Cortina 2026”
Olympics Games. This was to be achieved by putting in place a multi-operator mobile radio infrastructure and
implementing fiber-optic backhauling, where necessary.
It is planned to implement a gap-funding incentivization scheme will, with public grants provided to economic
operators that will be selected through public procedures. The grants will cover up to 90% of the expenses
incurred to deploy network infrastructure; these grants must be made available to market participants on a
wholesale basis, and on fair and non-discriminatory terms.
On February 20, 2024, TIM sent its own consultation submission.
In December 2024, Infratel Italia entered into three major agreements aimed at strengthening digital
infrastructure and strategic connectivity networks. These agreements – signed with the Italian Prime Minister's
Office, the Department for Digital Transformation, the Italian Development Agency (Invitalia) and the Ministry
of Business and Made in Italy – represent a decisive step in the implementation of the National Recovery and
Resilience Plan (NRRP) and in the preparation for the Milan-Cortina 2026 Winter Olympics.
The agreements related to:
■
Strengthening backhaul networks and mobile connectivity for the Milan-Cortina 2026 Winter Olympics
This agreement foresees a total investment of 107 million euros, earmarked for strengthening backhaul
networks (95 million euros) and mobile connectivity in the road tunnels affected by Olympic events (12
million euros). It aims to ensure fast and reliable network coverage that will support the event’s
technological needs and improve telecommunications infrastructure.
■
Second intervention for small islands and health care
26 million euros in funding will be used to boost the connectivity of small islands (8 million) and of health
facilities that will be involved in Olympic events (18 million euros). This intervention aims to reduce the
digital gap in remote territories and to support a modern and efficient healthcare network.
Public consultations are set to be published on the development plans that are to be funded: a necessary
step before calls for tenders are published.
Voucher Plan
The aim of the Plan, launched on May 5, 2020, with a total allocation of more than 1 billion euros, is to promote
and offer incentive for the demand for Ultrabroadband connectivity services (NGA and VHCN) in all areas of
the country, in order to increase the number of families and businesses that use digital services with high-
speed networks of at least 30 Mbit/s.
Family vouchers
First phase
A first phase of intervention, launched on November 9, 2020, with a budget of 200 million euros, in favor of
families with ISEE income of less than 20,000 euros, to whom a contribution of 500 euros is allocated (200
euros for connectivity and 300 euros for tablet or PC on free loan for use), met the need to address, during the
early stages of the COVID-19 pandemic, the effects of the health emergency and guarantee suitable
connection services to ensure continuity of the families’ school and working activities. The first stage ended on
November 9, 2021, a year after it started, as per the implementing decree. This measure has proven to be not
much of an incentive: of the entire amount set aside of 200 million euros, no more than 93 million euros have
been assigned. 210,000 bonuses were assigned against an availability of 400,000.
Second phase
On April 27, 2022, Infratel launched a public consultation before starting a second phase of dispensing vouchers
to families.
Total resources of 407,470,769 euros have been allocated for the intervention.
The aim of the intervention is to promote and offer incentive for the demand for Ultrabroadband connectivity
services (NGA and VHCN) in all areas of the country, in order to increase the number of families that use digital
services with high-speed networks of at least 30 Mbit/s.
The consultation expired on May 31, 2022.
On March 22, 2023 Infratel launched a consultation supplementary to the one concluded in May 2022, expiring
on April 22, 2023, in order to acquire opinions and observations regarding the following intervention proposals:
■
intervention in favor of families, without ISEE limitations and without an active data contract on the fixed
broadband and ultrabroadband network;
■
provision of a voucher equal to 300 euros, to incentivize subscriptions for at least 300Mbps in the form of a
discount on the activation price (where present) and on the amount of service delivery fees for a period of
up to 24 months, and includes the supply of related electronic equipment (CPE);
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Main changes in the regulatory framework
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■
exclusion of families who have already benefited from the connectivity voucher during phase 1, intended
for less well-off families;
■
provision of an additional contribution equal to a maximum of 130 euros to cover costs relating to civil
works that may be incurred within one’s private property in order to prepare it for the passage of the
necessary infrastructure.
To integrate the observations collected during the previous consultations, carried out in the months of April-
May 2022 and March-April 2023, Infratel launched, on December 11, 2023, a new public consultation regarding
the second phase of the “ Voucher Plan for ‘incentivizing families’ demand for ultrabroadband connectivity’.
The consultation expired on January 11, 2024.
The new intervention proposal, in favor of families, includes:
■
the provision of a voucher equal to 100 euros in the form of a discount on the activation price (where
present) and on the amount of the service delivery fees, including the supply of the relevant electronic
devices (CPE), for a period of up to 24 months;
■
the activation of a subscription with at least 300 Mbit/s download;
■
the portability of the voucher at any time in the event of a change of subscription in order to avoid any
form of lock-in on contracts.
The subjects who will be able to access the voucher are families who:
■
do not have any connectivity service or have not had a connection in the last 6 months;
■
have a service with download speeds of less than 30 Mbit/s.
There are currently no plans to start the second phase of dispensing vouchers to families.
Company vouchers
The intervention offering incentive to companies, approved by the European Commission last December 15,
2021, was launched on March 1, 2022 and aims to facilitate the development of ultrafast internet connections
for companies and the digitization of the production system.
Net of the amount attributed to communication costs and expenses accompanying the measures and the
reimbursement of direct and indirect costs linked to the activity, the amount set aside for the disbursement of
the vouchers is approximately 590 million euros.
Beneficiaries can request just one voucher to guarantee an increase in connection speed, from 30 Mbit/s to
more than 1 Gbit/s, varying from a minimum of 300 euros to a maximum of 2,500 euros, according to the
guaranteed download speed and contract term (from 18 to 24 months).
The Voucher Plan for businesses had an initial deadline of December 15, 2022, which was then extended to
December 31, 2023.
The extension had been requested by the Italian government from the European Commission, considering that
there was still more than 430 million euros available and also taking into account the May 2022 extension of
the beneficiaries to also include professionals (natural persons with a VAT number operating an intellectual
profession, self-employed or associated).
On March 22, 2023 Infratel launched a consultation regarding the "Voucher Plan to incentivize business
connectivity demand - Application Services" which expired on April 22, 2023 in order to acquire opinions and
observations regarding the following intervention proposals:
■
intervention in favor of micro, small and medium-sized enterprises, as well as natural persons with a VAT
number who exercise, on their own or in an associated form, an intellectual profession pursuant to article
2229 of the Italian Civil Code, or one of the unorganized professions referred to Law of January 14, 2013, no.
4;
■
provision of a voucher of variable value, for the activation of application services in the 5G, Cloud, Cyber
Security, Big Data, Artificial Intelligence, Blockchain, drones fields, to support the activities of the
beneficiaries;
■
Companies or professionals who already have a contract with at least 30 Mbps download speed will be
able to request the voucher contribution.
At the scheduled deadline, TIM sent its contribution. The results of this consultation have not yet been
published.
Wholesale mobile network markets
Mobile termination market analysis
On January 22, 2019, AGCOM published its final decision on mobile network termination market analysis
(resolution no. 599/18/CONS). In particular, AGCOM established symmetric tariffs for all MNO and full MVNO
operators for the period 2018-2021 (0.98 euro cents in 2018, 0.90 euro cents in 2019, 0.76 euro cents in 2020,
0.67 euro cents in 2021) and confirmed the absence of an obligation to check the termination prices for calls
originating outside the European Economic Area (EEA); however, SMP operators cannot adopt termination
rates that are higher than those applied to Italian operators by operators in non-EEA countries where rates are
regulated.
In accordance with Delegated Regulation (EU) 2021/654 of the European Commission, a progressive reduction
was made in mobile termination prices in three years, so as to allow for a gradual transition towards the target
price of 0.2 cents/min. in 2024: 0.67 cents/min until end 2021, 0.55 cents/min in 2022 and 0.4 cents/min in 2023.
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Under certain conditions, which should in principle guarantee price reciprocity, these caps also apply to the
termination of calls originating outside the EU.
Retail fixed-line markets
Universal Service
Net cost
Following ruling no. 4616/2015, published on October 2, 2015, in which the Council of State canceled decision
no. 1/08/CIR of AGCOM on the retroactive application of the new methodological criteria for calculating the net
cost of the universal service (USO) relating to the 2004-2007 years, the Authority began the public consultation
of the net cost of the total years 2004-2007 with resolution 89/18/CIR, published on July 3, 2018, and
subsequent resolution no. 62/19/CIR, published on May 7, 2019. On September 11, 2019, the Authority published
the final resolution concerning the Net Cost of Use for 2004-2007 (resolution no. 103/19/CIR) in which it
recognized the existence of an unfair charge for TIM of a total of 113.4 million euros to be shared between all
fixed-line and mobile operators. The share payable by the OAOs amounts to approximately 26.6 million euros,
calculated net of installments already paid by the same operators, following the 2004 and 2005 procedures
approved “illo tempore”. In relation to past disputes, following ruling no. 3388/15 of the Council of State,
published on July 7, 2015, on September 11, 2019, the Authority launched the public consultation procedure
(resolution no. 102/19/CIR) for an in-depth fixed-mobile substitutability analysis, in line with the path outlined
for the 2004-2007 years. In this context, ruling no. 6881 of October 8, 2019, in which the Council of State
authorized the return of the shares paid by Vodafone to TIM, for the contested years (1999-2000 and
2002-2003). In light of the above-mentioned Council of State ruling, which completely reversed the Lazio TAR
rulings no. 6458, 6459, 6461 and 6463 of May 23, 2018, in execution of which the public consultation pursuant
to resolution no. 102/19/CIR was started, the Authority revoked the aforementioned resolution with decision
190/19/CIR.
On July 21, 2020, AGCOM launched the public consultation relating to the review of the inequity of the net cost
of the universal service 1999-2009. The extension of the time period subject to renewal until 2009 was
necessary following the ruling no. 2542/2020 with which the TAR accepted Vodafone's appeal, in terms of
fixed-mobile substitutability. The opinions on the years 2004-2007, renewed by AGCOM with resolution 103/19/
CIR, and on which the TAR has not yet expressed an opinion also hang on the same issue. In compliance with
judgment 6881 passed by the Council of State, in its Resolution 263/20/CIR, the Authority defined a new
approach to demonstrate the lawfulness of the participation of mobile operators at the net USO cost for the
years in question. AGCOM’s view expressed in the consultation is to recognize prima facie the unfairness of the
charge for the years 2002-2009. For the previous years 1999-2000, however, the Authority did not recognize
the existence of an unfair charge for TIM.
On March 29, 2021, with the publication of resolution no. 18/21/CIR, AGCOM confirmed the obligation of mobile
operators to participate in the USO contribution mechanism for the years 2001-2009. Following a challenge of
the resolution by Wind and Vodafone, the Ministry of Economic Development suspended the obligation for
operators to make payment.
On February 17, 2022, the regional administrative court canceled resolution no. 18/21/CIR, upholding just one of
the grounds for appeal submitted by the OAOs challenging the threshold parameter related to the unfairness
of the expense (2nd facie) with regards to the economic and financial impacts on the appointed party. Instead,
the additional grounds for appeal of the OAOs were rejected by the court.
AGCOM published resolution no. on June 27, 2022. 1/22/CIR with which the deadlines established by resolution
no. are suspended. 92/21/CIR, already extended by resolution no. 58/22/CONS and resolution no. 143/22/CONS.
Also in light of the development of the judgment on resolution no. 18/21/CIR, the conditions envisaged by the
law and by the AGCOM regulations on administrative procedures for the suspension of the aforementioned
procedure do not appear to exist, which could and should be reactivated by the Authority at least for the
purpose of calculating the value of the unfair cost, expecting the outcome of the pending disputes solely for
the distribution of the relevant shares among the operators.
The Council of State with collegial ordinance no. 3885/2023, published on April 18, 2023, referred the
preliminary questions relating to the participation of Mobile Operators in the contribution to the USO Fund to
the EU Court of Justice, suspending any other judgment in this regard.
The EU Court of Justice, in a judgment published on September 19, 2024 ruled that: (i) proof of a certain degree
of fixed/mobile substitutability is not required for mobile operators to participate in the unfair burden sharing
mechanism; (ii) it is up to Member States to establish the criteria for assessing burden unfairness.
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New Regulation containing provisions to protect end users regarding contracts
relating to the provision of electronic communications services
On January 3, 2024 AGCOM published resolution no. 307/23/CONS containing provisions for the protection of
end users regarding contracts relating to the provision of electronic communications services, which repeals
resolution no. 519/15/CONS. The measures entered into force six months after publication.
The new regulation regulates the pre-contractual and contractual phases and the termination of the contract,
applying to all contracts regardless of the time of stipulation with the exception of what is provided for
termination costs in the event of withdrawal, which applies only to contracts concluded after the January 3,
2024.
The regulation applies to consumers as well as for various provisions also to micro-enterprises, small
businesses and non-profit organizations.
Inflation-indexed offers
Resolution no. 307/23/CONS also regulates contracts with provisions for the adjustment of prices by inflation.
According to AGCOM, indexed offers are legal and in the event of an adjustment the customer does not have
the right to withdraw without costs. In order to apply the indexing clauses, however, it is necessary to acquire
the customer’s express consent (opt-in).
The contracts may not provide for any corrective measures with respect to the full application of the public
adjustment index, including the application of thresholds with respect to the index or added mark-ups or
minimum increases during the contractual period.
The first indexation cannot take place before 12 months have passed from the signing of the contract.
In the event of a price change of more than 5%, the customer must be able to switch to an equivalent non-
indexed offer.
The contractual conditions must provide that the operator has the right to increase the tariffs by an amount
corresponding to the increase in the annual consumer price index and is, at the same time, obliged to pass on
the reductions in this index by decreasing the tariffs by an amount corresponding to the reduction.
The clauses introduced so far in existing contracts are void if the customer does not “accept” them ex post.
The reference index used to adapt the contracts is the National Consumer Price Index for families of blue
collars and white collars (FOI). Finally, commercial communication must observe stringent transparency
requirements on the economic effects of indexation.
Retail mobile network markets
Premium Services
In February 2021, with resolution no. 10/21/CONS, AGCOM adopted new measures related to the
implementation of digital services with contents in subscription from mobile network. In particular, default
barring has been envisaged on the SIMs, namely an inhibition to purchase these services, which can be
removed by prior express decision of the customer, and a customer consent acquisition process for individual
purchases, through the entry of a temporary password (an “OTP”). This resolution has been appealed against
by TIM before the Regional Administrative Court.
With resolution no. 91/22/CONS AGCOM sanctioned TIM for failure to comply with resolution no. 10/21/CONS
relating to “carrier billing” subscription services, both TIM brands on its own platform and available on third-
party platforms, ordering it at the same time to implement the procedure for acquiring proof of consent from
the customer in the case of purchases of TIM brand digital services. This resolution has been appealed against
by TIM before the regional administrative court on additional grounds.
In February 2023, the Lazio Regional Administrative Court on the one hand partially canceled resolution no.
91/22/CONS, noting that it was unlawful in the part relating to the definition of the sanction, which will now be
redetermined by the Authority and, on the other hand, rejecting the main appeal against resolution no. 10/21/
CONS.
The Company appealed to the Council of State in May 2023.
In December 2023, with resolution no. 306/23/CONS, AGCOM accepted the measures implemented by TIM for
the purposes of compliance with the Order referred to in resolution no. 91/22/CONS.
In March 2024, with resolution no. 44/24/CONS, the Authority re-quantified the sanction imposed in resolution
no. 91/22/CONS, in implementation of the aforementioned decision of the Lazio Regional Administrative Court.
In November 2024, the Council of State rejected the appeal against AGCOM Resolution 10/21/CONS.
Parental Control Services
With resolution no. 9/23/CONS, AGCOM has defined specific "Guidelines on systems for the protection of
minors from the risks of cyberspace" in implementation of article 7-bis of the legislative decree of April 30,
2020, no. 28, the effects of which came into force from November 2023.
In extreme summary, these Guidelines provide that the parental control system is pre-activated on the offers
dedicated/subscribed by the minor, offered “on request” for the other offers (both fixed and mobile) and
always free for the end customer.
On the same topic, in October 2023, with legislative decree of September 15, 2023, no. 123 (so-called Caivano
Decree), coordinated with the conversion Law of November 13, 2023, no. 159, new obligations have been
introduced for terminal manufacturers, who will have to place devices with parental control systems on the
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market by September 2024. While waiting for manufacturers to make parental control services available,
electronic communications service providers ensure the availability of parental control applications.
The same rule placed further information obligations on both device manufacturers and electronic
communications service providers on the possibility and importance of installing parental control applications.
Quality of Services
Quality of services included in the Universal Service
The new Electronic Communications Code (introduced by Legislative Decree no. 207/2021, which came into
force on December 24, 2021) abrogated Art. 61 of the previous Code, which established a fixing mechanism,
with resolutions passed by AGCOM of annual targets for the Quality of the Universal Service that TIM was
required to assure as failure to do so would lead to the payment of administrative fines.
The new Code also included Broadband Internet access in the universal service. In this respect, in resolution no.
309/23/CONS published on December 14, 2023, AGCOM defined the broadband internet service level necessary
to ensure that all citizens participate in social and economic life. As far as the Universal Service is concerned,
internet access should have a nominal download speed of 20 Mbps.
This connection speed was defined taking into account national circumstances, the quality and technical
requirements necessary to support at least the minimum set of services specifically listed in Annex 5 to the
Code, as well as the operators’ observations acquired as part of the preliminary investigation procedure.
Quality of mobile and personal services
By resolution no. 23/23/CONS, AGCOM updated the regulation governing quality and mobile and personal
service charters and the regulation of the campaigns for measuring quality of the Broadband data service. The
new resolution, amongst others:
■
incorporates certain measures envisaged by Regulation (EU) no. 2015/2120 and the related BEREC
guidelines on the access to open Internet and, in particular, the obligation to indicate, in the contracts
offered by mobile operators, the estimated maximum speed and the publicized speed in both download
and upload;
■
introduces the obligation to include maps of coverage for the various technologies on operator websites,
with a covered pixel granularity of no more than 100 m2.
Quality of electronic communication services from a fixed location
With resolution no. 156/23/CONS of July 31, 2023 AGCOM introduced a new directive on the subject of "quality
and charters of electronic communications services from fixed locations", merging the two previous directives
on "quality and charters of fixed telephony services" (pursuant to resolutions nos. 254/04/CSP, 131/06/CSP and
244/08/CSP, which are simultaneously abrogated as of June 29, 2024, which is the deadline for implementing
the measures required under resolution no. 156/23/CONS).
The new regulation provides that:
■
all provisions of the new directive (including those involving contractual obligations) also apply to FWA
lines;
■
Schedules showing the technical characteristics of the bids must also include (in addition to “minimum
speeds” in download and upload, “maximum connection delay” and “maximum packet loss rate”)
“maximum speeds” and “normally available speeds” in download and upload;
■
in the event of failure by the operator to comply with even just one of the service quality level values, the
new directive provides that the customer can terminate the line without any charge (a provision already
existing and which is confirmed), or that he can request the contractually foreseen compensation or start a
procedure via the ConciliaWeb platform.
Quality of customer assistance service in the electronic communications sector and
audiovisual media services
The Communications Guarantee Authority, in Resolution no. 255/24/CONS of July 10, 2024, after a lengthy
preliminary process, concluded the proceedings aimed at regulating customer service in the electronic
communications sector and the audiovisual sector in the provision of live pay services for high-interest public
events (as per art. 33, para. 3 and 4, of the Consolidated Law on Audiovisual Media Services (TUSMA)).
The provisions of the Regulation must be implemented by Operators within 12 months of its publication on the
AGCOM website on August 8, 2024; Meanwhile, the regulatory framework set out in Resolution No. 79/09/CSP
continues to apply.
The new framework aims to ensure:
■
Maximum access to customer assistance services;
■
Transparency and traceability of complaint handling procedures;
■
Quality of customer assistance services.
The new framework underlines that the service should be provided through a traditional telephone service and
also strongly recommends digital assistance.
Specifically, Resolution 255/24/CONS establishes the following provisions:
■
free customer assistance services, confirming the current regulatory framework;
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■
telephone customer assistance services with a human operator should be provided for electronic
communications services, at least on weekdays between 8:30 a.m. and 9:30 p.m. (until 7:30 p.m. for
business customer service numbers);
■
the IVR tree options for talking to an operator should be clear, transparent and understandable, enabling
the user to get assistance from an operator and to file a complaint in the shortest possible time;
■
for telephone support services, customers should have a dedicated option available to file a complaint at
the first level of the IVR tree;
■
the time limit for resolving complaints, from the date of receipt, should not exceed thirty days (the time
limit was reduced from 45 to 30 days);
■
the customer should have the right to make a complaint through the telephone channel, registered letter
and digitally, if the operator makes this mode available to the customer;
■
the operator should give the customer a complaint identification code after receiving the complaint.
The resolution also adopts new quality indicators for telephone customer service, digital customer service, and
complaint handling, which will become operational on August 8, 2025.
New TUSMA (Consolidated Law on Audiovisual Media Services) - Events of social
interest or significant public interest: Quality of Experience indicators for users of live
video streaming platforms; Compensation; Complaint handling procedures; Technical
support tools
The Ministry of Economic Development’s decree of May 27, 2022 (pursuant to Article 33(3) of the Consolidated
Law on Audiovisual Media Services (TUSMA)) listed several events of social interest or significant public interest
(to be broadcast to the Italian general public, either live or deferred-live, on terrestrial or pay TV) for which
providers must guarantee users adequate standards of reliability, service continuity and image quality, as set
out by AGCOM.
In relation to these events, the Authority – in resolution no. 74/24/CONS and in agreement with the Ministry
pursuant to Article 33(4) of TUSMA – defined:
■
Quality of Experience (QoE) indicators for users of live video streaming platforms and related
compensation; and
■
appropriate procedures for handling user complaints, claims and reports, as well as technical assistance
tools.
In the belief that sporting events, such as domestic league soccer matches, make up the majority of events of
public interest, AGCOM referred used its resolutions concerning the DAZN proceedings as its framework for
reference.
The measures in the above Resolution are to be gradually implemented by October 16, 2025.
New TUSMA (Consolidated Law on Audiovisual Media Services) – Events of general interest – Prominence
of services of general interest
In the interests of ensuring pluralism, freedom of expression, cultural diversity and accuracy of information for
the widest possible audience, audiovisual and radio media services of general public interest provided through
any medium used by the audiences to receive or access them must be given adequate prominence, regardless
of the platform on which those services are provided. The Authority issues guidelines setting out the criteria for
an audiovisual or radio media service to qualify as a service of general public interest. In those same guidelines,
the Authority also define the methods and criteria to be complied with by producers of equipment suitable for
receiving radio and television signals, providers of indexing, aggregation or retrieval of audiovisual or sound
content, or providers determining the manner in which services are presented on user interfaces. With
Resolution 390/24/CONS, AGCOM published its SIG Guidelines in which it disapplied the rules for the TIMVISION
service. While TIM is not (currently) directly impacted, TIM has nevertheless considered participating in the
Permanent Technical Round Table on Prominence established by AGCOM on December 5, 2024.
New TUSMA – Access to logical channel numbers on DTT
All equipment suitable for receiving digital terrestrial television signal, even if enabled for internet connection,
must have the logical channel numbering (LCN) system installed for digital terrestrial television. Such a system
must be easily accessible. In resolution no. 294/23/CONS, the Authority approved the “Regulations on access to
logical channel numbers on digital terrestrial television”. DTT-enabled devices that are placed on the market
after June 6, 2025 (i.e., 18 months after the Regulations are published on December 6, 2023) must abide by the
following constraints:
■
at least one of the remote controls (supplied with the device) must be equipped with numerical keys that
allow access to digital terrestrial television channels. Any additionally provided remote control that does
not include numerical buttons should include a button that allows the user to access video source
selection;
■
numerical keys providing access to DTT channels must be enabled, and therefore usable by the user, from
any environment, service, feature or application being used by the user at the time the key is typed.
Furthermore, under these Regulations, the image or wording on the box or icon that provides access to digital
terrestrial television channels must be identical on all devices and user interfaces. To set out ways of
implementing this provision, the Authority established a special Technical Round Table, in which TIM also
participated as the provider of the TIMVISION service (and TIMBOX). In July 2024, Resolution no. 259/24/CONS
was published, in which the Authority regulated the definition of the icon for accessing digital terrestrial
television channels. The measures must be implemented within 12 months of the Technical Round Table
completing its work (i.e., by June 7, 2025) and must also apply to devices already on the market which are still
in production chains.
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New TUSMA - Regulations to protect pluralism
At the end of the public consultation triggered by resolution no. 94/23/CONS, the Authority adopted resolution
no. 6/24/CONS setting out guidelines to define the specific methodology for verifying the existence of positions
of significant market power that are detrimental to pluralism, as referred to in Article 51(5) of the TUSMA, thus
bringing an end to procedure initiated under resolution no. 72/22/CONS. Based on these guidelines, the
Authority’s board must ascertain whether a position of significant market power that is detrimental to
pluralism exists and, if so, must decide how this should be promptly rectified.
In resolution no/ 97/24/CONS, AGCOM commenced the proceedings and public consultation regarding the
identification of the individual markets that make up the integrated communications system. TIM took part in
the consultation by submitting a contribution in June regarding its market of interest (“Market for linear and
nonlinear, pay audiovisual media services of national dimension”).
With Resolution 502/24/CONS, AGCOM concluded the proceedings to ascertain the economic value of the
Integrated Communications System (Sistema Integrato delle Comunicazioni, SIC) for the year 2022: the top
twelve groups operating in the economic areas that make up the SIC jointly account for 69% of the SIC, while
the remaining 31% of total revenues is represented by a broad range of market players each with shares of less
than 1%. The share attributed to TIM (in 12th position) is 1%. No entity active in the SIC earned revenues
exceeding 20% of the total value.
New TUSMA - Digital and media literacy
For the purposes of performing the specific statutory responsibilities involved in monitoring the state of digital
and media literacy in Italy assigned by the legislature (Article 4, paragraph 4, of TUSMA), AGCOM launched a
coordinating round table with stakeholders in December 2024 to facilitate the collection and cataloging of the
main measures, initiatives and best practices. TIM is a participant at the round table.
Authority fees
AGCOM contribution fee
On January 9, 2024, AGCOM issued resolutions no. 276/23/CONS, 277/23/CONS, 281/23/CONS and 282/23/CONS
relating to the payment of the AGCOM contribution fee for the year 2024 (calculated on the 2022 financial
statements figures). For the year 2024, the rate was 1.40 per thousand for the electronic communications
market, 2.00 per thousand for media services and digital content, and 0.30 per thousand for activities to
prevent and suppress the illegal broadcasting of content.
On September 4, 2024, AGCom issued resolution no. 270/24/CONS on the payment of the AGCom contribution
fee for operating costs related to digital services coordination with a rate of 0.135 per thousand (calculated on
the 2022 financial statements figures).
TIM paid a total of around 14.5 million euros under reserve.
Privacy and personal data protection
General Data Protection Regulation (GDPR), Privacy Code and further applicable
legislation on the matter
TIM has had a structured operating model in place since 2003 to ensure the correct application of Regulation
(EU) no. 2016/679 at Group level (so-called “General Data Protection Regulation” or GDPR for short), of
Legislative Decree June 30, 2003, no. 196 (so-called Privacy Code) and the further applicable legislation
regarding the protection of personal data.
In 2023, the revamped Corporate Privacy Operating Model entered into operation in accordance with the
principle of privacy-by-design, with a number of improvement activities implemented, including in particular:
the execution of a new mapping of personal data processing activities in conjunction with company
operational processes with the definition of a new methodology for assessing the privacy risk associated with
each processing; the review of the processing management process and updating of the records of processing
activities; the introduction of new IT tools, including the one for the management of the Information provided
to the different stakeholder types (e.g. customers, employees, visitors) and the one for the management of the
aforementioned Registers, which allow the digitization and integration of the information managed.
In 2024, all activities pertaining to the management of the Privacy Operating Model were duly performed, with
the processing register periodically updated to take into account new activities/projects of significance to the
year’s organizational development. In this latter respect, all activities for managing the complex aspects of
personal data processing (both with reference to data subjects and IT systems) were carried out with a view to
the sale of the transfer of the “NetCo” business unit, which was completed on July 1, 2024; this business unit
was merged into FiberCop S.p.A., which exited the TIM Group on the same date.
There were no legislative changes in the area of personal data protection during 2024.
However, mention should be made of Decision no. 364 of June 6, 2024, in which the Privacy Watchdog gave its
final approval to the Code of Conduct for telemarketing and teleselling activities. This Code of Conduct came
into operation on October 28, 2024, after the Monitoring Body had validated it and laid down the procedure for
adhering to the Code. This Code of Conduct is targeted at entities engaged in telemarketing or teleselling
activities, either as a principal (e.g. TIM, as the Data Controller) or as a provider of direct or ancillary services (as
the Data Processor, including call centers and agencies). Adhering to the Code of Conduct is optional, but it is
an important accountability tool suitable for demonstrating compliance with the relevant regulations. TIM has
already sent its expression of interest in joining the Code of Conduct to the Oversight Body.
The Privacy Function is responsible for studying regulations (including the provisions of the Data Protection
Authority), informing the Group’s Corporate Functions/Companies and ensuring that the relevant policies and
guidelines are issued and updated. In this latter respect, the most important policy is the “System of rules for
the application of legislation on personal data protection in the TIM Group”, which is the set of operating rules
and regulations governing personal data processing in accordance with the provisions of applicable law and
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regulations, defined specifically for the TIM Group, is kept constantly up-to-date and is available on the
corporate intranet.
The Privacy Function also provides expert advice and support to the Group’s Corporate Functions/Companies
on the proper handling of personal data in business processes in accordance with internal policies/procedures.
Finally, TIM’s Privacy Department schedules specific training plans on a needs basis to raise awareness in the
various company departments and illustrate the policies and procedures issued for applying the legislation on
personal data processing.
Spectrum
Between July and September 2024, AGCOM put out for consultation (Resolution 247/24/CONS) some proposals
on regulatory measures concerning the allocation of radio frequencies for terrestrial electronic
communications systems whose rights of use expire on December 31, 2029 (800MHz, 900MHz, 1400MHz,
1800MHz, 2100MHz, 2600MHz, 3.4-3.6 GHz, 28GHz). TIM holds blocks of frequencies in all bands affected by the
expiry of the rights of use covered by the consultation, with the exception of the 28GHz band for which the
rights of use have been transferred to FiberCop.
TIM and some other leading mobile operators have argued that the solution for ensuring market sustainability
and the development of networks and services is to extend or renew all rights of use under terms exclusively
geared towards undertakings to invest in infrastructure, services, coverage and quality of service, rather than
involving share payments.
Utilities have argued the need to introduce protective tools to ensure the continuity of IoT services, such as by
reserving a share of frequencies for smart metering services.
New benefits for disabled consumers
With Resolution no. 290/21/CONS, the Italian Communications Authority (AGCom) defined the new regulation
for users with disabilities.
This resolution extends the current beneficiaries of electronic communication services, extending the special
tariffs of fixed and mobile network services, currently only granted to the blind and deaf, to also include
disabled users with major limitations to walking. To this end, an experimental phase of application of the
measures is envisaged, expected to last twelve months, but which may be extended, to obtain information
about the new beneficiaries and the effectiveness of the measures adopted. The new beneficiaries could
submit requests to adhere within a 90-day time frame running from January 1 to April 1, 2022, with benefits
set to start on Saturday, April 30, 2022.
During 2023, AGCOM decided to open a new experimental phase until June 2024 and subsequently extended
the right to the concession also to offers dedicated to minors.
TIM, which has always paid close attention to the needs of disabled users, decided in both 2022 and 2023 to
apply the benefits to disabled users with serious limitations in walking ability beyond the regulatory dictate.
In Resolution 281/24/CONS, the Authority resolved to extend the facilities provided for the deaf and blind to
people with severe walking limitations.
It was also established that, in order to monitor facilities performance as referred to in Resolution no. 290/21/
CONS as amended, operators should report to the Authority, by January 30 of each year, the number of
facilities in place as of December 31 of the previous year, broken down by type of service – fixed and mobile –
and by disability category.
Public telephony
Following the transposition of EU Directive 2018/1972, which leaves the individual Member State the possibility
of removing or confirming the obligations in force, the Electronic Communications Code no longer includes
public telephony among the services subject to the Universal Service obligation, but refers the matter to a
subsequent evaluation.
With Resolution 98/23/CONS of April 19, 2023, the Authority concluded its analysis by recognizing the lack of
Universal Service requirements for roadside booths and therefore repealing the related supply obligation on
TIM. The booths, therefore, can be removed after verifying the existence of adequate mobile coverage by at
least one operator. The verification of mobile coverage will be carried out by TIM during the decommissioning
phase and cases of systems not covered will be reported to AGCOM, which will be able to suspend the
decommissioning while waiting to identify the appropriate solutions. In all other cases, TIM can proceed after
posting a specific sign at least 30 days before the scheduled date for decommissioning the system. TIM will
have to send a half-yearly report on disused roadside telephone booths.
For public booths located in places of social importance (hospitals with at least 10 beds; prisons; barracks, with
at least 50 permanent occupants, in which mobile phone signals are jammed), AGCOM confirms, however, the
Universal Service obligation. However, the Authority recognizes the need to be able to overcome the traditional
conception of the Universal Service for these specific cases and establishes the launch of “a technical table
with the aim of defining the new supply technologies and cost management methods burden on the caller of
the public telephone service in order to allow the technological upgrade of the fiber optic network”.
Golden Power
The Prime Minister established that the Company is subject to the obligations pursuant to Legislative Decree
no. 21/2012 (the “Golden Power Decree”, setting out special powers rules) on September 28, 2017, as a business
that:
■
carries out “activities of strategic importance for the defense and national security system” (as per article 1
of the Decree Law) and
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■
possesses networks and systems “necessary to ensure the minimum supply and operation of essential
public services” and goods and relationships “of strategic importance for the national interest” in the
communications sector (as per article 2 of the same Decree Law).
The regulatory architecture relating to TIM, consequently, involved a first phase in 2017 on the issue of the
Prime Ministerial Decrees of October 16 and November 2, 2017.
With the measure of October 16, 2017, the Presidency of the Council of Ministers exercised the special powers
provided for in Article 1 of the Golden Power Decree by imposing specific requirements and conditions on TIM
and its subsidiaries Telecom Italia Sparkle and Telsy, including, in particular, the obligation to ensure the
presence on the respective Boards of Directors of a Security Chief Executive Officer – currently coinciding with
the Chief Executive Officer – (who has Italian citizenship and security authorization), as well as the
establishment of a Security Organization unit.
With a ruling on November 2, 2017, the Prime Minister’s Office also exercised the special powers provided for in
article 2 of the Golden Power Decree, through the imposition of further requirements and conditions with the
aim of assuring suitable development plans, able to guarantee a continuity of supply of the Universal Service.
Furthermore, with Prime Ministerial Decree of November 16, 2020, the Presidency of the Council of Ministers
following the notification presented by TIM regarding the corporate operation concerning FiberCop S.p.A.,
exercised special powers through the imposition of specific provisions referring to the networks and systems
included in the business unit transferred to FiberCop. With these provisions, the Government has requested the
adoption of adequate development, investment and maintenance plans necessary to guarantee the continuity
of the Universal Service.
The government’s ruling has subsequently evolved through Decree Law no. 21/2022 (Urgent measures to
combat the economic and humanitarian effects of the Ukraine crisis), converted with amendments by Italian
Law no. 51/2022, which introduced new features regarding both corporate management and 5G technology-
based communication services.
As regards the latter issue, by this Decree, the legislator renewed the close attention paid to 5G, insofar as an
activity of strategic importance for defense and national security, extending the scope of reference from the
non-EU supplies taken as reference by the previous Law no. 41/2019 to include any supply relating to 5G,
regardless of the geographic location in which the supplier is based, and redefined the State’s special powers.
More specifically, the Decree made it mandatory for companies to preventively notify the Presidency of the
Council of Ministers an Annual Purchasing Plan of goods and services in 5G technology, with the possibility of
making four-monthly updates.
The Plan is subject to approval by the government, which may potentially also lay down conditions or
requirements; failure to notify results in a sanction being applied to the company in the amount of up to 3% of
its turnover.
With the closing of the sale of NetCo and the subsequent divestment of primary fixed access network
wholesale activities and of TIM’s investment in FiberCop, which took place on July 1, 2024, the measures
contained in the Prime Ministerial Decree of November 16, 2020 are to be considered completed in light of the
change to TIM’s business perimeter.
National Cyber Security Perimeter
The framework of provisions regarding National Security has flanked the Golden Power regulations with those
relating to the National Cyber Security Perimeter (PSNC), established by Law no. 133 of November 18, 2019,
converting Decree Law 105/2019.
The regulations in this area are hinged on three elements, governed by the subsequent implementing decrees,
which constitute the same number of obligations for TIM, as strategic operator: the adoption of security
measures aimed at guaranteeing high security levels for ICT assets, the secure award of ICT supplies and the
notification of security incidents.
Compliance with the obligations laid down by regulations governing the PSNC means, for TIM, an impact in
organizational terms and as regards operative processes, in line with the restrictions aiming to guarantee a
high level of security of networks, information systems and the computer services of public administrations,
public and private operators and entities based in Italy, in consideration of the fact that such elements are
responsible for the performance of a service that is essential for the maintenance of civil, social or economic
activities, fundamental for the interests of the State and the malfunctioning, interruption, even partial, or
improper use of which could damage national security.
TIM’s failure to comply with regulatory obligations will result in administrative penalties of up to 1.8 million
euros. Any repetition of the infringement may result in an increase of up to three times the prescribed penalty.
In addition, the use of products and services without the necessary communication to the relevant Authorities
or passing of tests or in breach of the conditions set forth may result in the application of the accessory
administrative sanction of incapacity to hold appointments of management, administration and control in
legal entities and companies, for a period of three years from the date on which the violation is ascertained.
Finally, anyone providing information, data or elements of fact that are not true, in order to hinder or impact
procedures and inspections and supervision, shall be punished by imprisonment from one to three years.
Measures for simplification and digital innovation
■
Decree-Law no. 60/2024 (the “Cohesion Decree-Law”), as converted with modifications by Law no.
95/2024, introduced simplification measures for the actions under the Italy 5G Plan of the National
Recovery and Resilience Plan (NRRP). In particular, in order to implement new and suitable network
infrastructure with at least a 150 Mbit/s downlink speed and a 30 Mbit/s uplink speed, the systems
located in the “white areas” under the Italy 5G Plan are to be positionally arranged according to the
pixels shown in the nationwide mobile networks map, even by derogation from municipal regulations if
necessary, as provided for in the calls for tender. Decree-Law no. 19/2024, converted to statute by Law
no. 56/2024(the “NRPP Decree-Law 4”), introduced (Art. 21) the possibility for the Italian Mint and
Polygraphic Institute (Istituto Poligrafico e Zecca dello Stato - IPZ) to make use of public service
concessionaires, or their subsidiaries, in order to carry out pilot programs to define models for paperless
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operations and the digitization of related processes. Under Decree-Law no. 113/2024, converted into
statute by Law no. 143/2024(the “Omnibus Decree-Law”) increased the number of entities (including
TIM) that IPZ can engage to carry out its activities aimed at paper-free operation (Art. 10 c. 13bis).
■
Budget Law 2025 (Law no. 207/2024). Benefits were introduced to take advantage of the incentives under
the Transition 5.0 Plan (a single instalment of up to 10 million euros, the possibility to combine the tax
credit with other benefits, the simplification of procedures to calculating the reduction of energy
consumption). The law also broadened the scope of the web tax, which now applies to companies with
revenues from digital services above 750 million euros, wherever those revenues are made.
■
Draft Decree-Law containing “measures to recognize and promote mountain areas.” Currently before
Parliament (as a Draft Decree-Law, this would be passed over the medium-to-long term). The original text
would have imposed charges on mobile phone and digital connection infrastructure operators to ensure
the continuity of their services on the road and rail networks serving mountain villages. Once laid out
before Parliament, the provisions were changed by allowing road and rail network operators and
concessionaires the possibility to enter into specific agreements with the aim of regulating fees,
conditions and procedures for the construction and operation of facilities. Therefore, while the reference to
possible charges on mobile and digital connection infrastructure operators remains, the rule leaves ample
room for interpretation.
■
Draft laws on the organization and operation of Call Centers. Currently before Parliament (as a Draft
Decree-Law, this would be passed over the medium-to-long term). This aims to strengthen consumer
protection, including data protection, and to protect industry workers by introducing measures to combat
aggressive telemarketing, labor costs for call center activity, and spoofing.
■
Draft Decree Law on “public safety measures”. Currently before Parliament (as a Draft Decree-Law, this
would be passed over the medium-to-long term). The legislation would introduces new identification
requirements for new mobile SIM activations of customers from non-EU states, who must provide a
copy of their residence permit.
New Electronic Communications Code
Italian Legislative Decree no. 207 of November 8, 2021 setting out the “Implementation of Directive (EU)
2018/1972 of the European Parliament and of the Council of December 11, 2018, establishing the European
Electronic Communications Code, was published in the Official Journal on December 9, 2021 and came into
force on December 24, 2021.
The new Code reviews and replaces the previous regulatory framework and introduces important new features
including, in particular, the following:
■
to foster the copper-fiber migration of customers: the user must allow operators to perform
technological adaptation works on the access networks, aimed at improving the connection (without
changes to the economic conditions);
■
contract duration: provide for an initial contract duration of no more than 24 months and introduce at
least one commercial offer of a maximum initial duration of 12 months;
■
sanctions: far more severe, particularly as concerns violations of user protection;
■
right of withdrawal in the event of ius variandi: extension of the deadline to exercise the right of
withdrawal (60 days from communication of the contractual changes instead of 30 days);
■
right of withdrawal: it is stressed that the provisions of Art. 1 of Decree Law 7/2007 (Bersani Decree Law)
remain in place but the deactivation cost should be eliminated in the event of termination/withdrawal
after contract expiry (12/24 months) and the faculty is introduced for the customer to return the network
terminal equipment before the agreed contract end date, at no extra cost;
■
Universal Service: inclusion of the service to access Broadband Internet with a bandwidth that enables the
inclusion of all citizens in the country’s social and economic life (Art. 94). AGCOM currently has proceedings
in progress aimed at defining the adequate bandwidth. A review is envisaged of the existing obligations, by
the Minister, by December 21, 2022 and thereafter every 3 years (Art. 97). In particular, the Code draws a
distinction between coverage obligations and obligations relating to the supply of services.
The Ministry for Business and Made in Italy, in order to obtain market orientation on the application of the new
sector legislation, one year after the entry into force of the Legislative Decree in question, launched a review on
May 12, 2023. market consultation, aimed at market operators in electronic communications networks and
services, closed on June 15, 2023, on the corrective measures to Legislative Decree of November 8, 2021, no.
207.
Following the market consultation, on December 18, 2023 the Council of Ministers approved, in preliminary
examination, a legislative decree which introduces corrective provisions to the Legislative Decree of
November 8, 2021, no. 207.
This legislative decree was finally approved on April 13, 2024, the date of its publication in the Official Gazette,
and came into effect on April 28 (Legislative Decree no. 48/2024).
The measure aims to meet the cross-cutting objectives of (i) simplifying the implementation of electronic
communication infrastructure and (ii) adapting to technological innovation. The main changes introduced
include:
■
Customer identification/SPID. For customer identification in cases of new activation and number
portability or SIM change, digital identity systems are equivalent to identity documents for all legal
purposes.
■
Legal Restrictions on ownership/Mobile Network. The possibility for operators to access the common
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areas of buildings has also been extended for mobile network development activities. This is with a view to
installing, connecting and maintaining network elements, cables, wires, cable distributions or similar
equipment that does not emit radiofrequency radiation.
■
Prohibition of limitations on installations by Regions/Bodies. Regions and local authorities do not limit
the possibility of installation to particular areas of the territory, without prejudice to the specific provisions
for the protection of areas of particular historical-landscape or environmental value or protection from
exposure to electromagnetic fields of sensitive areas, having, in which case, still ensure an alternative
location that ensures the same effect.
■
Installation of systems/Forms. The description of the installed system, to be sent to the Municipalities,
must be carried out on the basis of the forms prepared by the local authority, where absent on the basis of
specific attachments indicated.
■
Authorization procedures. Infrastructure installation requests must be made through an online platform,
using forms prepared by local governments. If there is no online platform or forms for that purpose,
requests can be sent by certified email.
■
Self-certification. Installations and modifications to the transmission characteristics of systems with a
maximum power at the antenna connector less than or equal to 10 watts and with a radiating surface size
not exceeding 0.5 square meters are subject to self-certification of activation.
■
General authorization for electronic communications networks and services. A new annex has been
introduced for the reporting for the transfer of the general authorization for the offer to the public of
electronic communications networks and services. This report replaces the SCIA (Segnalazione certificata
di inizio attività).
■
Definitions
•
access point: defined as “network device that allows access to a variable number of users between a
LAN radio network and an electronic communications network”;
•
indirect unique identification of the user. It is carried out by acquiring the technical identity previously
validated and registered by other public entities or operators of a public utility service;
•
electronic communication system: set of network devices that includes the equipment and
infrastructure necessary for the transmission, reception and processing of electronic signals and that
allows communication between individuals or devices;
•
call center: service specifically organized for managing multi-channel contacts and communication
between end users and specialist staff or automated answering mechanisms under a contractual
arrangement between the managing entity and a telecommunications operator.
■
EMF limits. With the electromagnetic field exposure limits being raised (from 6 V/m to 15 V/m) in May
2024, the principle of equitable electromagnetic spectrum allocation was introduced to define the power to
be allocated to operators.
■
Sanctions. the sanctioning system remains virtually unchanged. It is specified that the turnover achieved in
the electronic communications market (instead of the market to which the non-compliance relates) will be
taken into account in determining the amount of sanctions. In addition, sanctions in violation of article 98-
decies can also be imposed on parties who are not suppliers of electronic communications networks and
services (from 50,000 euros to 1 million euros).
■
Geographic mapping of network installations and connectivity service offerings:
•
the geographical mapping of the coverage of networks capable of providing broadband by the Ministry
and AGCOM has been postponed to December 21, 2024;
•
the mapping must also report the degree of use of the networks;
•
the information released by companies on network installation plans has the nature of binding
declarations and implies the obligation to report on the state of implementation of the network
installation plans subject to the declaration;
•
designated areas: the Ministry may designate areas in which it has ascertained that no company or
public authority has installed or intends to install a network that guarantees performance equal to a
download speed of at least 300 Mbps (currently 100 Mbps);
•
mapping data: Mapping data must also be made available to regional and local authorities in open,
standardized and interoperable formats, and through the Digital National Data Platform (PDND).
Increase in energy prices
Decree of the Ministry of Environment and Energy Security (DM MASE) dated November 28, 2024.
In implementation of Article 3 paragraph 2 of Decree-Law 131/2023 (enabling the Ministry of Environment and
Energy Security to extend the State aid scheme to sectors or subsectors that are not included among the
energy-intensive sectors listed Annex 1 of the EC Guidelines with a view to supporting companies facing high
energy costs and at risk of relocation), the Ministry published Decree no. 61/2024 setting out the terms and
procedures for companies operating in sectors not included in the EC Guidelines to submit State aid proposals.
The sector or sub-sector must be at risk or high risk of being forced to relocate due to high energy costs that
could lead them to relocate outside the EU to areas where there is no environmental regulation or offering
other energy intensity based incentives. The falling are eligible to submit a proposal:
■
companies that use at least 1 GWh of electricity a year (Art. 3 para 1 of the Decree-Law) and operate in
one of the sectors or subsectors not included in the EC Guidelines
■
trade associations representing sectors or subsectors not included in the EC Guidelines.
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Annual Market and Competition Law
■
The 2022 Law (Law no. 214/2023) entered into force on December 31, 2023. This implemented the
following changes:
•
Adjusted the electromagnetic exposure limits, which are now set to:
–
15 V/m in respect of electric field intensity E;
–
0.039 A/m in respect of magnetic field intensity H;
–
0.59 W/m2 in respect of power density.
•
Dedicated offers. During the legislative process to convert the decree-law into law, an amendment
was passed, stipulating that providers of electronic communications networks or services could not
make dedicated offers based on the operator they belong to. The amendment bill was amended by
restricting this prohibition on dedicated offers merely to the use of information acquired through
databases for mobile number portability.
■
The 2023 Law (L. no. 193/2024) entered into force on December 18, 2024. Also with regard to dedicated
offers, a provision has been introduced to merely update the Mobile Number Portability Regulation, with no
negative impact on the way such offers are proposed.
Countering the illicit dissemination of content protected by copyright
via electronic communications networks
■
Law no. 93/2023 (the “Anti-Piracy Law”). Under this piece of legislation, an automated technology
platform will be implemented to handle requests for the obscuration of infringing content.
■
AGCOM with Resolution no. 321/23/CONS defined the technical and operational requirements for the
operation of the single technological platform with automated operation. The platform has been officially
active since February 1, 2024.
■
Decree-Law no. 113/2024, converted by Law 143/2024,(the “Omnibus Decree-Law”). This makes provision
for:
•
a tightening of the regulations for blocking illicit content (including extending it to IPs predominantly
intended for illicit activities);
•
the possibility for AGCom to unblock IP addresses and DNS domain names;
•
the introduction of criminal sanctions for TLC operators that fail to report abusive access to computer
systems.
Revision of the Consolidated Law on Audiovisual Media Services
(TUSMA)
On March 20, 2024, the Council of Ministers finally approved Legislative Decree no. 50 of March 25, 2024
containing provisions supplementing and correcting the Consolidated Law on Audiovisual Media Services
(TUSMA) in view of changing market realities, in implementation of Directive (EU) 2018/1808 amending
Directive 2010/13/EU. This decree, known as the TUSMA Corrective Decree, was published in the Official
Gazette no. 90 of April 17, 2024.
The Corrective Decree came into effect on May 2, 2024.
As regards the obligations of suppliers of on-demand audiovisual media services (TIMVISION), as part of the
corrective measures introduced, we specifically highlight:
■
obligations to invest in EU audiovisual works produced by independent producers: The decree
introduced a reduction from 20% to 16%;
■
obligations on the programming of EU audiovisual works: the current regulatory framework remains
unchanged, maintaining a 30% obligation and reference to recent works (last 5 years). The AGCOM must
set out how the programming obligations are to be fulfilled in a Regulation. These obligations do not apply
to media service providers with modest turnover or audience numbers, according to the threshold criteria
contained in the regulation (5 million euros);
■
Italian sub-quota. A 70% share of the percentage required for investment and programming obligations
respectively is reserved for original works of Italian content produced anywhere in the past 5 years by
independent producers, of which 27% is reserved for cinematographic works;
■
the elimination of secondary regulation for the identification of additional sub-quotas of investment in
audiovisual works of original Italian expression by independent producers, as well as for the time limitation
of the rights of use and exploitation of the works and for the ways in which they are exploited on different
platforms;
■
the sanctioning system remains unchanged.
In Resolution 412/24/CONS, AGCOM launched a public consultation on amendments to the Regulation on
Programming and Investment Obligations concerning European Union and Independent Works, as set forth in
Resolution no. 424/22/CONS in light of the changes introduced by Legislative Decree no. 50 of March 25, 2024.
TIM took part in the consultation; the procedure is ongoing.
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Brazil
Revision of the model for the supply of telecommunications services
In 2019, Law 13,879 was approved, that came into force on October 4, 2019, establishing a new regulatory
environment for the regulation of telecommunications in Brazil. This is the most significant change in the past
20 years.
The new telecommunications legislation allows fixed-line licensees to adapt their contracts from a
concession scheme to an authorization scheme. This transition from concession to authorization must be
requested by the licensee and requires the approval of the Anatel (“Agencia Nacional de Telecomunicações”).
In return, licensees must, among other conditions, make a commitment to investment in expanding fixed
Broadband telephony services to areas with no adequate competition for these services, in order to minimize
inadequacies and inequalities between areas of Brazil.
The change also affects the roles for authorizing the use of radio frequencies, establishing subsequent
renewals (previously limited to only one) and allows the exchange of radio frequencies between operators
(secondary spectrum market).
In June 2020, Decree no. 10,402 was published, which governs the procedure for adapting the concession to
the authorization regime, as well as the definition of the criteria for calculating investment commitments. The
decree also established guidelines for the extension of radio frequency authorization, which will be held by
Anatel to guarantee greater security for investments in the sector.
Public policies applicable to the telecommunications sector
Decree 9,612/2018 (“Connectivity Plan”) established another series of important rules, with a series of
guidelines for the adaptation of terms of performance, the onerous concession of spectrum authorization and
regulatory acts ingeneral, including: (i) expansion of high capacity telecommunications transport networks; (ii)
increased coverage of mobile Broadband access networks; and (iii) broadening the coverage of fixed
Broadband access network in areas with no Internet access through this type of infrastructure. The Decree also
establishes that the network resulting from these commitments must be shared from the moment it enters
into operation, except where there is adequate competition in the relevant reference market.
In relation to the deadlines for the development of pipelines not compliant with current regulations,
authorizations for user licenses to radio frequencies, and the introduction of other statutory provisions
generally, planned investments will focus primarily on the modernization of fixed-line and mobile Broadband
networks and on specific areas of the country. Telecommunications networks made under the investment plan
will have shared access. The decree was amended by Decree 10.799/2021, containing government priorities for
coverage of “districts with public schools,” coverage of population centers not served by mobile telephony, and
the expansion of fixed broadband access in locations that did not have access. The decree was amended by
Decree 11,299/2022, which envisaged the possibility of a private federal network managed exclusively by
Telebras (Brazilian state company).
The decree also provides for the assignment of funds for the approval of projects approved by Connected Cities
and for the temporary supply of fixed or mobile Broadband. In addition, it regulates the private
federal network, which can be carried out by other public or private entities or organizations and the criteria for
the use and management of the network will be defined by the Federal Government under the terms
established in a deed of the State Ministry for Communications.
In 2020, Decree no. 10,480/2020 was published by the federal government, which regulates the antennas law
(Law no. 13,116/2015) with the aim of encouraging the development of the telecommunications network
infrastructure. This Decree fosters development of telecom network infrastructure and is a major step towards
eliminating some historical problems in the sector preventing its development (e.g. free right of way on
highways and railways, positive silence, small cells and “dig once”).
That same year, Law 14,109/2020 authorized the use of FUST (“Fundo de Universalização dos Serviços
de Telecomunicação”), including by the private sector, to expand connectivity in rural or urban areas with a
low human development Index (HDI) as well as policies for education and tech innovation of services in rural
areas. In June 15, 2021, Provisional Measure 1,018/2020 was converted into Law 14,173/2021, which reduced
charges for satellite internet terrestrial stations and amended some of the FUST rules of application. The law
reduces FUST collection between 2022 and 2026, to telecommunications operators that run universalization
programs approved by the Anatel Board of Directors, with resources from the operators themselves. The
benefit will be valid for five years from January 1, 2022 and will be progressive: 10% in the first year; 25% in the
second year; 40% in the third year; and 50% from the fourth year onwards. In addition, the new legislation
removes the obligation to share towers within a distance of less than 500 meters from each other. The
elimination of this obligation is essential for the deployment of 5G in Brazil, including to ensure the
densification scenario expected for the new technology.
In the first quarter of 2022, the Federal Government signed Decree no. 11,004/2022, which governs the use of
FUST and sets directions for the use of resources by the Board of Directors, instituted in June 2022. At the
beginning of July, the internal regulations of the Fust Management Board were published and a budget for
2023 was proposed for digital inclusion. During the second half of 2022, in its resolution 02/2022, the Board of
Directors set out further details on the mechanisms for using the FUST, clarifying the role of the financial
agent, the accountability mechanism and the Anatel function in the application of the reduction of the
contribution in the waiver mechanism. The Board also unveiled connectivity programs for public elementary
schools and projects to expand connectivity and grants for low-income users.
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In 2023, Decree 11,856/2023 was published, defining the National Cyber Security Policy (PNCIBER) and setting
out guidelines on cyber security in Brazil. This Decree also establishes the National Committee for Information
Security.
Over the years, Anatel has issued several resolutions imposing obligations on the telecommunications
industry; these include the RQUAL (Regulamento de Qualidade dos Serviços de Telecomunicações) and the new
RGC (Regulamento Geral de Direitos do Consumidor de Serviços de Telecomunicações). In 2024, Anatel initiated
a revision of the PGMC (Plano Geral de Metas da Competição) and the RUE (Regulamento de Uso do Espectro
Radioelétrico), two of the most significant regulations applying to the telecommunications sector. Final
approval is expected by the second half of 2025.
We also recently monitored and participated in the public consultations conducted by Brazil’s National
Electricity Agency (Agência Nacional de Energia Elétrica - ANEEL) on issues relating to infrastructure (pole)
sharing and distributed generation. The results of the public consultations are expected in 2025.
Revision of the Service Quality Regulation
In December 2019, Anatel approved the new Service Quality Regulation (Regulamento de Qualidade dos
Serviços de Telecomunicações) (RQUAL), in response to reactive regulation. In this new model, quality is
measured on the basis of three main indicators – a Service Quality Index, a Perceived Quality Index and a User
Complaints Index – and operators are classified into five categories (A to E). Based on this reactive regulation,
Anatel will be able to take measures according to specific cases, such as consumer compensation, the
adoption of an action plan or the adoption of precautionary measures to ensure quality standard
improvements.
Following the joint work of Anatel, operators and ESAQ (Entidade de Suporte à Aferição da Qualidade) to define
the objectives, criteria and reference values of these indicators, in late November 2021 the Anatel Board of
Directors formalized the reference documents supporting this regulation: the Operating Manual and the
Reference Values; it also established the operational entry into force on March 1, 2022. The agency now
publishes monthly quality indicator results on its website. Regarding the Quality Mark, in November 2023 the
Agency announced the temporary and partial suspension of the Reference Values Documentand the Quality
Marks Document for the years 2022 and 2023, and granted a period of 120 days to submit a new proposal for
the method and parameters to establish Quality Marks.
In December 2024, following an industry-wide discussion, the Board of Directors approved an update to the
Reference Values Document (Documento de Valores de Referência - DVR) in a manner that diverged from the
industry’s requests, prompting operators to file administrative appeals.
Review of the General Regulation on Consumer Rights (RGC)
In November 2023 Anatel published Resolution 765/2023, the New General Regulation on Consumer Rights
(Regulamento Geral de Direitos do Consumidor de Serviços de Telecomunicações - RGC), which revokes
Resolution no. 632/2014 and establishes new general rules for customer service, billing and offers, applicable to
fixed-line, mobile, broadband and cable TV customers. The new RGC will come into force by September 1, 2025
as regards the general rules and within fifteen months as regards the registration of offers and the price
adjustment rules.
In December 2024, Anatel’s Board of Directors reviewed cancellation requests submitted by operators,
introducing more flexibility on key aspects such as offer migration, data base for adjustments, automatic
renewals, billing during suspension, asymmetry with small providers and partner fees. The revised regulation is
expected to take effect in September 2025.
Data protection
On August 14, 2018, the Lei Geral de Proteção de Dados Pessoais (Law 13.709/2018 - LGPD) was enacted.
In December 2018, Provisional Measure 869/2018 created the National Data Protection Authority (Autoridade
Nacional de Proteção de Dados - ANPD) and extended the period for the entry into force of the Law to 24
months (August 2020).
In June 2020, Law 14,010/2020 deferred the coming into force of the LGPD, only for the provisions related to
fines and penalties, to August 2021. The other provisions of the law took effect in September 2020. In addition,
Decree 10.474/2020 came into effect in August 2020, establishing the ANPD, which among other things would
become responsible for: producing guidelines for national data protection policy; supervising enterprises and
applying sanctions; issuing regulations and procedures on personal data protection.
In August 2021, articles relating to supervision and sanctions imposed by the ANPD came into force.
In October 2021, the regulation (CD/ANPD no. 1 of October 2021) for the administrative supervision and
sanction process under the responsibility of the ANPD was approved.
In January 2022, the regulation (CD/ANPD no. 2 of January 2022) implementing the LGPD for small
processing agents was approved.
In June 2022, a Provisional Measure no. 1,124 was published, transforming the ANPD into an independent
agency of special nature. The interim measure was converted into Law no. 14,460/22.
In December 2022, the new incident report form was published, with the obligation to report any breach of
personal data.
In January 2023, the ANPD became a self-sufficient entity connected to the Ministry of Justice and Public
Safety.
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In February 2023, the Regulation on Dosimetry and Enforcement of Administrative Penalties was approved by
Res. CD/ANPD no. 4/2023.
In May 2023, CD/ANPD Statement no. 1 was published, which addressed the applicable legal basis for
processing personal data of children and adolescents (Articles 7 and 11 of the LGPD).
In February 2024, the ANPD published a guideline on legal assumptions for the processing of personal data
based on legitimate interest.
In April 2024 it published a Regulation on Security Incident Reporting.
In July 2024, it approved the Regulations on the Role of the Data Processor.
In August 2024, it published the Regulations on International Data Transfer and the Content of Standard
Contractual Clauses and Guidelines on the Use of Biometrics and Facial Recognition.
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COMPETITION
Domestic
The market
During 2023, the Italian telecommunications (TLC) market showed a slight recovery in revenue growth (+0.8%
YoY), driven by increased revenues from fixed network services (+4.4% YoY), while the declines for mobile
network services declined (-4.1% YoY)1.
This market remains highly competitive, with a telecommunications price index decreasing year on year for the
past decade, which continued in 2023 (-1.5% YoY) despite the simultaneous growth of the general consumer
price index (+0.5% YoY), which was nonetheless down on the past two years2.
In 2024, the Italian telecommunications sector saw significant developments in both the fixed and mobile
segments. In the fixed market, growth was driven by ICT services for businesses, while the consumer segment
continued to experience significant competitive pressures.
In terms of connectivity, the development of broadband and ultrabroadband continues to be the main element
of the evolution of the market, favoring the progressive increase in traffic carried by the networks, both for
fixed lines (+16.7% year-on-year increase in total fixed network traffic in the first nine months of 2024) and for
mobile (+16.0% year-on-year increase in overall daily traffic in the mobile network in the first nine months of
2024).
In 2024, the major OTTs generating traffic on traditional telecommunications networks – such as Google
(YouTube), Meta (Facebook, Instagram, WhatsApp), Netflix, Amazon (Prime Video), and Microsoft (Teams,
Xbox) – had an increased impact on the industry. These market players have benefited from increased demand
for video services, online gaming, and collaboration applications, significantly increasing the volume of data
transported. OTTs have focused on advanced technologies to improve their service quality, such as by
enhancing 4K/8K streaming and adopting edge computing solutions to reduce latency.
However, this has exacerbated the gap with traditional operators, which continue to incur the infrastructure
costs needed to support the huge amount of traffic.
This scenario has reinvigorated debate about the need for regulation for OTTs to pay their fair share of network
costs. The European Commission has launched a series of initiatives to consider regulatory interventions, while
operators are calling for swift action to balance the economic sustainability of the sector.
With regards to the current positioning of the telecommunications operators in convergent markets, certain
trends are seen, already mentioned above with different levels of evolution:
■
the development of new services in the sector of media and entertainment (TV, Music, Gaming) and new
digital services (smart home, digital advertising, mobile payment-digital identity);
■
the development of innovative services in the IT market, particularly Cloud, IoT and Cybersecurity services.
A major structural change came in Swisscom’s acquisition of Vodafone Italia, which brought together the
business of Fastweb and Vodafone to create an integrated operator capable of offering converged solutions
across all market segments. This deal has raised antitrust concerns, leading AGCM to impose specific remedies
to protect competition. This has particularly been the case in wholesale fixed-line communication services in
terms of the provision of services to third-party operators, as well as for business customers in terms the
information-sharing in public tenders currently underway between Fastweb and Vodafone Italia on the one
hand and Public Administration on the other.
Competition in the fixed telecommunications sector
The fixed-line telecommunications market has continued to see a downturn in access and voice revenues,
while Broadband and Ultrabroadband revenues have shown growth. In recent years, service providers have
concentrated mainly on expanding the penetration of Broadband and Ultrabroadband services by introducing
bundled voice, Broadband and service deals in a highly competitive environment with consequent pricing
pressure.
The retail market continues to progressively increase the level of competition, with the HHI concentration index
decreasing year on year.
In September 2024, total Fixed Access was 20.25 million and was substantially stable on a quarterly basis
(+0.01% QoQ) and up slightly by 65 thousand on an annual basis (+0.3% YoY). TIM is the leading operator with
a market share of 38.0%, down by -1.9 percentage points YoY; Vodafone follows with a slightly decreased
15.5% market share (-0.3% YoY). WindTre has a market share of 14.4% (+0.2 percentage points YoY) while
Fastweb has a market share of 13.1% (-0.4 percentage points YoY). Sky has a market share of 3.6% (+0.6
percentage points YoY3).
After a long period of uninterrupted growth in broadband access, and after a period of stability in 2023, the first
three quarters of 2024 showed signs of growth recovery. In September 2024, broadband accesses amounted to
19.20 million, which was up slightly both on a quarterly basis by 38 thousand units (+0.2% QoQ) and on an
annual basis by -217 thousand units (+1.15% YoY)4.
On an annual basis, accesses in FTTH technology were on the increase in the third quarter of 2024 (5.53
million, +27.0% YoY) and FWA (2.30 million, +10.5% YoY) while accesses in FTTC technology were on the
decrease (9.30 million, -6.7% YoY) and ADSL (-549 thousand, -21.5%).
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1 Source: AGCOM “2024 Annual Report” (2023 data).
2 Source: AGCOM “2024 Annual Report” (2023 data).
3 Source: AGCOM observatory 3rd quarter 2024.
4 Source: AGCOM observatory 3rd quarter 2024.
In 2024, TIM sold access infrastructure and its wholesale business to Optics BidCo, a subsidiary of KKR, leading
to the creation of FiberCop, a new market player exclusively active exclusively in the wholesale market and
focused on accelerating infrastructure development.
In November 2024, AGCom announced precautionary measures suspending the replicability obligations of
TIM’s retail offering5, leaving more flexibility in the implementation of its fixed services.
The merger of Vodafone and Fastweb, both of which are active in fixed line services, will increase market
concentration and could help alleviate competition pressures.
Competition in the mobile telecommunications sector
In the mobile market, Machine to Machine (M2M) SIMs continued to grow, while Human SIMs remained stable
during the first nine months of 2024.
In the third quarter of 2024, total mobile lines (Human+ M2M) amounted to 109.0 million with an annual
growth of +0.5 million (+0.5% YoY): M2M lines are growing, reaching 30.4 million, +0.7 million YoY (+2.5%),
while Human lines are equal to 78.6 million for a decrease of -221 thousand lines YoY (-0.3%). Compared to
the previous quarter, Human lines remained essentially stable, growing by +44 thousand lines (+0.06%).
The competitive scenario of the Italian mobile telecommunications market in 2024 continues to be
characterized by an aggressive offer from the operator Iliad in terms of price and volume of data, followed by
those of the virtual operators (MVNO), resulting in general pressure on market prices. The operator Iliad and
the virtual operators in general continue to win over customers and, consequently, market share, to the
detriment of other infrastructure operators, mainly those with the highest market share.
In the third quarter of 2024, TIM was market share leader of the total mobile market (Human + M2M) with a
share of 27.1% (-0.8 percentage points YoY), followed by Vodafone with a market share of 26.4% (-0.8
percentage points YoY) and by WindTre with a market share of 23.7% (stable YoY).
Considering only the Human lines, WindTre is the leader with a market share of 24.0% but down by -0.7
percentage points YoY; followed by TIM with a market share of 23.5% down by -0.7 percentage points YoY and
Vodafone with a market share of 21.0% down by -0.9 percentage points YoY, Iliad reaches a share of 14.6% up
+1.3 percentage points YoY.
In 2024, the competition on 5G continued with the simultaneous presence of TIM, Vodafone, Wind Tre, Iliad
and Fastweb for mobile offering and a progressive coverage of the main cities. The spread of 5G has also
begun in the business segment, enabling specialized solutions for the vertical markets, even if the spread of
these services in this segment has not yet taken off.
The merger of Vodafone and Fastweb, both of which are active in 5G services, will increase market
concentration and could help alleviate competition pressures.
Brazil
The economy changed significantly during 2024. GDP grew more than estimated, with the latest official data
showing an increase of 3.5%; The population’s average income also increased; and the unemployment rate
reached 6.1%, the lowest level on record (November 2024). By contrast, indicators such as inflation, interest
rates and exchange rates deteriorated significantly in 2024. The most recent official inflation figures show a
rate of 4.8% for 2024 and a projection of 5.0% for 2025. The downward trend in interest rates was reversed in
the second half of the year, ending the year at 12.25% with estimates of substantial increases in 2025. Against
this backdrop, there has been a withdrawal of foreign investment from Brazil, which has impacted the
exchange rate of the Brazilian real. The Ibovespa capital market index also fell by more than 10% during 2024.
The number of defaulting adults has steadily increased to more than 45% of the total population, which,
added to rising inflation, could burden the economic prospects of households in the near future.
On the political front, the government is in stalemate with respect to the debates with Congress on structural
reforms. The government fiscal measures announced by the Ministry of Economy in December 2024 have not
lived up to the expectations of the financial markets, and the forecast remains uncertain for 2025. The
consumption tax reform has yet to be finalized, with some provisions currently being considered by Congress.
The forecast for the coming years is subject to some uncertainty because of these factors, with a gradual
stabilization currently predicted: economic growth is expected to slow to 2%, with interest rates expected to
rise to 14.75% before resuming a downward trend, providing a less attractive environment for foreign
investment growth. Uncertainty about the state of public accounts and the economy may affect consumption
and increase pressures on operating and financing costs. Despite this scenario, government investment in
infrastructure and positive trends in sectors such as agriculture could be areas of opportunity for 2025.
The new Brazilian government has maintained financial support for people with lower incomes and sought to
increase the minimum wage, which, together with a decrease in the unemployment rate, is supporting
consumption, including that of telecommunications services.
The mobile telecommunications sector is still in a period of competitive rationalization (after the recent market
consolidation), with service providers remaining focused on making increasingly attractive offerings to
consumers, not only in terms of price but also in terms of additional services, such as through partnerships
with companies that provide content streaming and video services in other vertical sectors, such as financial
services, education, healthcare and energy supply. The great challenge consists of increasingly involving
customers, offering an easier-to-use, more fluid end-to-end experience with all-digital integration solutions in
order to reduce the churn rate and seek to monetize the customer base. Over the past three years, the mobile
telephony market has grown at a rate significantly above inflation, but there are challenges ahead if it is to
continue this trend.
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5 AGCOM “Resolution No.406/24/CONS” of October 23, 2024, published on November 6, 2024.
In 2024, the post-paid mobile customer base exceeded 50% of the total mobile market for the first time. In
December, the post-paid mobile segment recorded an increase in the customer base of 8.3% on an annual
basis, thanks above all to the post-paid ex-M2M segment (+8.0 million year-on-year) but also due to the post-
paid M2M segment (+4.3 million year-on-year). This market will likely continue to be affected by migration
from pre-paid to hybrid “Control” segments. This growth is supported by offer segmentation strategies,
through the introduction of distinctive characteristics in the use of data services (e.g. unlimited use of data on
specific apps such as WhatsApp, Facebook, Twitter, Netflix, etc.) in pursuing a “More for More” policy logic that
aims to guarantee a greater stability of prices and an effective repositioning of the customer base on higher
value offers (voice+data+bundle with OTT content).
As of December 2024, the customer base decreased by 4.9% year-on-year in the pre-paid segment. This may
be a consequence of the economic environment, as well as the high level of migration from pre-paid to post-
paid. The main aim of market operators was to increase the percentage use of services, leveraging the SIM
card consolidation process in progress on the market, encouraging migration towards weekly (and monthly) or
hybrid (Control and post-paid) plans, offering a range of service bundles according to the needs of customers
(unlimited voice calls or data packages). This strategy aims to improve the customer base mix, as well as
ensuring greater stability (and reduced churn rate) and ARPU growth.
Service quality remains a difference-maker. Telecommunication suppliers that have invested more heavily in
the development of 4G and 5G networks (coverage and capacity) and in the improvement of processes
shaping customer experiences will have a higher possibility of being able to apply premium prices because
customers increase their expectations and assign greater importance to the quality of data services and higher
value content. All major mobile operators already provide 4G coverage to more than 97% of Brazil’s population
(as of November 2024) and already provide 5G coverage to over 58% of the population, with the top three
operators offering availability of more than 95% on average (according to the January 2025 Open Signal
report) with consistently service quality rates of more than 60% (according to the September 2024 Open Signal
report). TIM is a leader in both availability and consistent quality.
2024 was a year dedicated to continuing the growing trend in 5G coverage and customer base. As of
November 2024, 5G coverage exceeded 840 cities and the customer base reached 38.1 million (14.5% of the
market). Operators’ goal is to be able to increase mobile ARPU due to the consumption of new services
enabled by 5G (e.g.: latency-based rates, additional features such as entertainment packages). The 5G is also
expected to bring new applications for B2B segment in various industries over the coming years.
As of October 2024, the fixed broadband market grew by about 10% year-on-year. The growth was mainly
from ISPs (+4.5 million year-on-year in October 2024, accounting for about 90% of the total market growth of
5.0 million), which tend to offer cheaper services and reach areas where traditional operators have limited
infrastructure. This trend led to an increase in the number of regional market players and the first signs of
consolidation in a highly fragmented market (the total number of official ISPs decreased in 2024 but remains
above 8,000). The market dynamic was one of mergers and acquisitions of smaller ISPs by larger ISPs; M&A
deals between larger ISPs (as already seen between Vero and Americanet) are expected in the future. The
population penetration rate has already reached approximately 70% of the 73 million families and a phase of
maturity has begun, but there are margins for medium-term growth when compared to many other countries.
In this growing, highly competitive market, TIM has adopted a business strategy to selectively expand coverage
by targeting profitable growth, offering broadband Internet services (mainly through FTTH), and focusing on
reducing friction points to improve retention. As of December 2024, TIM had a customer base of about 800,000
users. The company pursues profitable and selective growth through an asset-light model in which fiber assets
are spun off to limit exposure to a market with lower rates of return.
There is also competition from other services outside the telecommunications sector, such as global and local
OTT providers, who offer internet-based content and services, including voice calls and messaging, without
paying for network infrastructure. OTT applications have become so important to customers that in many
cases they are offered by mobile operators as free services. OTT communications applications have a business
model that requires growth in network traffic, but it is telcos that must finance and make the network
infrastructure investments needed to handle the increased internet traffic generated by OTT applications.
Report on Operations of the
TIM Group
Competition
58
CONSOLIDATED FINANCIAL POSITION AND
CASH FLOWS PERFORMANCE
Non-current assets
■
Goodwill: the item decreased by 8,140 million euros, from 19,170 million euros as of December 31, 2023 to
11,030 million euros as of December 31, 2024 mainly due to:
•
the allocation of part of the Goodwill attributed to the Cash Generating Unit Domestic to NetCo, which
was sold on July 1, 2024 (7,920 million). For further details regarding the NetCo transaction, please
refer to the Note "Discontinued Operations/Non-current Assets Held for Sale" in the TIM Group's
consolidated financial statements as of December 31, 2024;
•
Goodwill impairment loss attributed to the Telecom Italia Sparkle group (CGU Domestic) for 52 million
euros;
•
the negative exchange rate differences (172 million euros) relating to the goodwill attributed to the
Brazil Cash Generating Unit.
■
Intangible assets with a finite useful life: these fell by 1,111 million euros, from 7,122 million euros at the
end of 2023 to 6,011 million euros at December 31, 2024, representing the balance of:
•
CapEx (+855 million euros);
•
amortization charge for the year (-1,419 million euros);
•
a net negative balance of 547 million euros related to other changes including the effects of the NetCo
transaction, other divestitures, foreign exchange differences (negative 371 million euros and essentially
related to the Brazil Business Unit) and other movements.
■
Tangible assets: these fell by 10,132 million euros, from 14,692 million euros at the end of 2023 to 4,560
million euros at December 31, 2024, representing the balance of:
•
CapEx (+1,194 million euros);
•
amortization charge for the year (-1,194 million euros);
•
a net negative balance of 10,132 million euros related to other changes including the effects of the
NetCo transaction, other divestitures, foreign exchange differences (negative 392 million euros and
essentially related to the Brazil Business Unit) and other movements.
■
Rights of use assets (mainly comprise rights of use on real estate leases, network connectivity and
telecommunications infrastructure): these fell by 2,048 million euros, from 5,515 million euros at the end of
2023 to 3,467 million euros at December 31, 2024, representing the balance of:
•
investments (+80 million euros) and increases in lease contracts (+720 million euros); In particular, 507
million euros of those increases relate to the Brazil Business Unit and 213 million euros to the Domestic
Business Unit;
•
amortization charge for the year (-576 million euros);
•
a net negative balance of 2,272 million euros related to other changes including the effects of the
NetCo transaction, other divestitures, foreign exchange differences (negative 322 million euros and
essentially related to the Brazil Business Unit) and other movements.
Consolidated equity
As of December 31, 2024, consolidated equity amounted to 13,361 million euros (17,513 million euros as of
December 31, 2023), of which 11,957 million euros were attributable to the Shareholders of the Parent
Company (13,646 million euros as of December 31, 2023) and 1,404 million euros were attributable to minority
interests (3,867 million euros as of December 31, 2023). In greater detail, the changes in consolidated equity
were the following:
(million euros)
12/31/2024
12/31/2023
At the beginning of the year
17,513
18,725
Total comprehensive income (loss) for the year
(1,091)
(1,035)
Dividends approved by:
(158)
(197)
TIM S.p.A.
—
—
Other Group companies
(158)
(197)
NetCo deconsolidation
(2,283)
—
Equity instruments
—
2
Other changes
(620)
18
At the end of the year
13,361
17,513
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
59
Cash flows
Adjusted net financial debt at December 31, 2024 was equal to 10,126 million euros (25,656 million euros as of
December 31, 2023).
The Group's Operating Free Cash Flow (OFCF, calculated by applying IFRS 16) in 2024 was positive and
amounted to 2,559 million euros (+3,238 million euros in 2023).
The main transactions that had an impact on the change in adjusted net financial debt are as follows:
Change in adjusted net financial debt
(million euros)
2024
2023
Change
(a)
(b)
(a-b)
EBITDA
4,825
4,645
180
Capital expenditures on an accrual basis
(2,129)
(2,168)
39
Change in net operating working capital:
(34)
1,121
(1,155)
Change in inventories
(23)
(11)
(12)
Change in trade receivables and other net receivables
138
(5)
143
Change in trade payables
120
73
47
Change in payables for mobile telephone licenses/spectrum
(24)
(48)
24
Other changes in operating receivables/payables
(245)
1,112
(1,357)
Change in employee benefits
(12)
(264)
252
Change in operating provisions and Other changes
(91)
(96)
5
Net Operating Free Cash Flow
2,559
3,238
(679)
% of Revenues
17.7
22.6
(4.9)pp
Cash flows from sales of investments and other disposals
280
3
277
Share capital increases/reimbursements including incidental expenses
—
—
—
Financial investments
(46)
(33)
(13)
Dividends payment
(159)
(273)
114
Increases in lease contracts
(720)
(664)
(56)
Finance expenses, income taxes and other net non-operating
requirements flow
(406)
(792)
386
Impact on NFP of NetCo sale
15,321
—
15,321
Reduction/(Increase) in adjusted net financial debt from continuing
operations
16,829
1,479
15,350
Reduction/(Increase) in net financial debt from Discontinued operations/
Non-current assets held for sale
(1,299)
(1,771)
472
Reduction/(Increase) in adjusted net financial debt
15,530
(292)
15,822
Equity Free Cash Flow (calculated by applying IFRS 16) in 2024 amounted to +243 million euros (+763 million
euros in 2023). This financial measure represents the free cash flow available for the remuneration of own
capital, to repay debt and to cover any financial investments and payments of licenses and frequencies.
The Equity Free Cash Flow is calculated as follows:
(million euros)
2024
2023
Change
Reduction/(Increase) in adjusted net financial debt
15,530
(292)
15,822
Impact for finance leases (new lease operations and/or renewals and/or
extensions (-)/any terminations/early extinguishing of leases (+))
77
785
(708)
Payment of TLC licenses and for the use of frequencies
24
48
(24)
Financial impact of acquisitions and/or disposals of investments
(15,547)
33
(15,580)
Dividend payment and Change in Equity
159
189
(30)
Equity Free Cash Flow
243
763
(520)
In addition to what has already been described with reference to EBITDA, the change in adjusted net financial
debt for 2024 was particularly impacted by the following:
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
60
Capital expenditures and investments for mobile telephone licenses/
spectrum
Capital expenditures and investments for mobile telephone licenses/spectrum of the TIM Group (NetCo
Discontinued Operations) for 2024, were 2,129 million euros (2,168 million euros in 2023).
CapEx is broken down as follows by operating segment:
(million euros)
2024
2023
Change
% weight
% weight
Domestic
1,349
63.4
1,334
61.5
15
Brazil
780
36.6
834
38.5
(54)
Other Operations
—
—
—
—
—
Adjustments and eliminations
—
—
—
—
—
Consolidated Total
2,129
100.0
2,168
100.0
(39)
% of Revenues
14.7
15.1
(0.4)pp
Specifically:
■
the Domestic Business Unit (NetCo Discontinued Operations - Domestic ServCo) shows capital
expenditures of 1,349 million euros, with a significant share aimed at Mobile and IT infrastructure
development. The investment trend reflects the increase in TIM Enterprise projects (Consip, PSN, Cloud)
driven by the increased focus on ICT revenues;
■
the Brazil Business Unit posted capital expenditures in 2024 of 780 million euros (834 million euros for
2023). Excluding the impact of changes in exchange rates (-61 million euros), investments increased by 7
million euros on 2023. The slight increase is related to investments in Information Technology
Change in net operating working capital
In 2024, TIM Group's NetCo Discontinued Operations (NetCo) Operating Working Capital showed a decrease of
34 million euros (+1,121 million euros in 2023) mainly attributable to a decrease in other operating receivables
and payables of 245 million euros partially offset by an increase in trade payables and receivables.
Financial investments
In 2024, the TIM Group's Financial Investments (NetCo Discontinued Operations) were 46 million euros (33
million euros in 2023). In detail they mainly include:
■
the contribution of the Brazil Business Unit in the investment fund, focused on 5G solutions, Upload
Ventures Growth;
■
the underwriting of the recapitalization of the company Polo Strategico Nazionale S.p.A.;
■
the contribution by the Domestic Business Unit into the UV T-Growth investment fund.
Increases in lease contracts
In 2024, the item came to 720 million euros (664 million euros in 2023) and includes the greater value of rights
of use entered following new passive lease contracts, increases in lease charges and the renegotiation of
existing lease contracts.
Financial expenses, income taxes and other net non-operating
requirements flow
In 2024, the flow has a negative balance for a total of 406 million euros (negative for 792 million euros in 2023).
It mainly includes outflows relating to financial management components, as well as the payment of income
tax expense and changes in non-operating payables and receivables.
Impact on NFP resulting from the NetCo transaction
The item includes the improvement in adjusted net financial debt related to the sale of NetCo, amounting to
15,321 million euros. More details can be found in the "Net Financial Debt" section below.
Sales of receivables to factoring companies
It should be noted that sales without recourse of trade receivables to factoring companies completed during
2024 resulted in a positive effect on the adjusted net financial debt at December 31, 2024 amounting to 1,134
million euros (1,135 million euros at December 31, 2023).
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
61
Net financial debt
Net financial debt is composed as follows:
(million euros)
12/31/2024
12/31/2023
Change
(a)
(b)
(a-b)
Non-current financial liabilities
Bonds
7,527
15,297
(7,770)
Amounts due to banks, other financial payables and liabilities
1,201
5,987
(4,786)
Non-current financial liabilities for lease contracts
2,421
4,743
(2,322)
11,149
26,027
(14,878)
Current financial liabilities (*)
Bonds
2,401
3,266
(865)
Amounts due to banks, other financial payables and liabilities
1,469
2,505
(1,036)
Current financial liabilities for lease contracts
523
838
(315)
4,393
6,609
(2,216)
Financial liabilities directly associated with Discontinued
operations/Non-current assets held for sale
—
—
—
Total Gross financial debt
15,542
32,636
(17,094)
Non-current financial assets
Securities other than investments
—
—
—
Non-current financial receivables arising from lease contracts
(40)
(112)
72
Financial receivables and other non-current financial assets
(646)
(1,103)
457
(686)
(1,215)
529
Current financial assets
Securities other than investments
(1,539)
(1,882)
343
Current financial receivables arising from lease contracts
(44)
(162)
118
Financial receivables and other current financial assets
(112)
(689)
577
Cash and cash equivalents
(2,924)
(2,912)
(12)
(4,619)
(5,645)
1,026
Financial assets relating to Discontinued operations/Non-
current assets held for sale
—
—
—
Total financial assets
(5,305)
(6,860)
1,555
Net financial debt carrying amount
10,237
25,776
(15,539)
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(111)
(120)
9
Adjusted Net Financial Debt
10,126
25,656
(15,530)
Breakdown as follows:
Total adjusted gross financial debt
15,189
32,001
(16,812)
Total adjusted financial assets
(5,063)
(6,345)
1,282
(*) of which current portion of medium/long-term debt:
Bonds
2,401
3,266
(865)
Amounts due to banks, other financial payables and liabilities
991
1,166
(175)
Current financial liabilities for lease contracts
474
786
(312)
The financial risk management policies of the TIM Group are aimed at minimizing market risks, fully hedging
exchange rate risk, and optimizing interest rate exposure through appropriate diversification of the portfolio,
which is also achieved by using carefully selected derivative financial instruments. Such instruments, it should
be stressed, are not used for speculative purposes and all have an underlying, which is hedged.
In addition, to determine its exposure to interest rates, the Group sets an optimum composition for the fixed-
rate and variable-rate debt structure and uses derivative financial instruments to achieve that composition. In
consideration of the Group's operating activities, the optimum combination of medium/long-term non-current
financial liabilities has been identified, on the basis of the nominal value, in the 65%-85% range for the fixed-
rate component and in the 15%-35% range for the variable-rate component.
In managing market risks, the Group has adopted Guidelines for the “Management and control of financial
risk” and mainly uses IRS and CCIRS derivative financial instruments.
To provide a better representation of the true performance of Net Financial Debt, in addition to the usual
indicator (renamed “Net financial debt carrying amount”), the TIM Group reports a measure called “Adjusted
net financial debt”, which neutralizes the effects caused by the volatility of financial markets. Given that some
components of the fair value measurement of derivatives (contracts for setting the exchange and interest rate
for contractual flows) and of derivatives embedded in other financial instruments do not result in actual
monetary settlement, the Adjusted net financial debt excludes these purely accounting and non-monetary
effects from the measurement of derivatives and related financial assets/liabilities.
For further details, see the “Alternative performance measures” chapter.
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
62
Adjusted net financial debt (including IFRS 16 net debt) amounted to 10,126 million euros at December 31,
2024, a decrease of 15,530 million euros compared to December 31, 2023 (25,656 million euros). This reduction
is mainly due to the NetCo divestment deal finalized on July 1, 2024, which resulted in a deleverage of 15.3
billion euros (including: 5.5 billion euros bond transfer to the buyer, 4.2 billion euros closing consideration
collection, 3.7 billion euros deconsolidation of Fibercop’s net financial position, and 2 billion euros
deconsolidation of net financial debt for leases recorded in application of IFRS 16, compounded by the positive
dynamics of operating-financial management.
For a better understanding of the information, the table below shows the various ways by which the Net
Financial Debt can be shown:
(million euros)
12/31/2024
12/31/2023
Change
(a)
(b)
(a-b)
Net financial debt carrying amount
10,237
25,776
(15,539)
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(111)
(120)
9
Adjusted Net Financial Debt
10,126
25,656
(15,530)
Leases
(2,860)
(5,307)
2,447
Adjusted Net Financial Debt - After Lease
7,266
20,349
(13,083)
Net financial debt carrying amount amounted to 10,237 million euros at December 31, 2024, a decrease of
15,539 million euros compared to December 31, 2023 (25,776 million euros). The reversal of the fair value
measurement of derivatives and related financial liabilities/assets saw a positive change of 9 million euros due
to the dynamics of the interest rate markets and the liquidation of a substantial portion of the derivatives
portfolio, with a corresponding reduction in underlying financial liabilities, following the transfer of the bonds of
TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A. to Optics BidCo S.A.; this valuation
adjusts the booked Net Financial Debt with no monetary effect.
Adjusted Net Financial Debt – After Lease (net of lease contracts) was equal to 7,266 million euros at
December 31, 2024, down by 13,083 million euros compared to December 31, 2023 (20,349 million euros).
In the fourth quarter of 2024, adjusted net financial debt decreased by 777 million euros compared to
September 30, 2024 (10,903 million euros).
(million euros)
12/31/2024
9/30/2024
Change
(a)
(b)
(a-b)
Net financial debt carrying amount
10,237
10,904
(667)
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(111)
(1)
(110)
Adjusted Net Financial Debt
10,126
10,903
(777)
Leases
(2,860)
(2,915)
55
Adjusted Net Financial Debt - After Lease
7,266
7,988
(722)
Gross financial debt
Bonds
Bonds at December 31, 2024 totaled 9,928 million euros (18,563 million euros at December 31, 2023).
Repayments totaled a nominal 9,625 million euros (18,046 million euros at December 31, 2023).
The change in bonds during 2024 was as follows:
(millions in original currency)
Currency
Amount
Repayment date
Repayments
Telecom Italia S.p.A. 450 million euros 3.625%
Euro
450
1/19/2024
Telecom Italia S.p.A. 950 million euros 4.000%
Euro
950
4/11/2024
Telecom Italia S.p.A. 1,500 million USD 5.303%
USD
1,500
5/30/2024
TIM Brasil 5,000 million BRL CDI+2.3%
BRL
294
7/25/2024
TIM Brasil 5,000 million BRL CDI+2.3%
BRL
294
10/25/2024
In April 2024, TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A made an Offer to Exchange
Existing EUR and USD denominated Notes for New Notes to Bondholders in preparation for the Netco
transaction. Exchange operations concluded in May 2024.
The new bonds have substantially the same terms as the corresponding series of original bonds, including in
terms of their maturity, interest rate, interest payment dates and restrictive covenants.
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
63
The table below summarizes the Notes still with the TIM Group and those subsequently transferred to Optics
on July 1, 2024:
Currency
Nominal value of
original notes
Coupon
Maturity date
Original notes
TIM Group
(nominal value)
New Notes
transferred to Optics
(nominal value)
Bonds issued by TIM S.p.A.
Euro
750,000,000
2.875%
1/28/26
375,000,000
375,000,000
Euro
1,000,000,000
3.625%
5/25/26
677,997,000
322,003,000
Euro
1,250,000,000
2.375%
10/12/27
742,285,000
507,715,000
Euro
1,250,000,000
6.875%
2/15/28
625,000,000
625,000,000
Euro
1,500,000,000
7.875%
7/31/28
750,000,000
750,000,000
Euro
1,000,000,000
1.625%
1/18/29
499,180,000
500,820,000
Euro
670,000,000
5.250%
3/17/55
440,000,000
230,000,000
Bonds issued by Telecom Italia Finance S.A.
Euro
1,015,000,000
7.750%
1/24/33
655,858,000
359,142,000
Bonds issued by Telecom Italia Capital S.A.
USD
1,000,000,000
6.375%
11/15/33
499,994,000
500,006,000
USD
1,000,000,000
6.000%
9/30/34
499,999,000
500,001,000
USD
1,000,000,000
7.200%
7/18/36
500,000,000
500,000,000
USD
1,000,000,000
7.721%
6/4/38
499,996,000
500,004,000
Revolving Credit Facility
The following table shows committed credit lines(*) available at December 31, 2024:
(billions of euros)
12/31/2024
12/31/2023
Agreed
Drawn down
Agreed
Drawn down
Sustainability-linked RCF – May 2026
4.0
—
4.0
—
Total
4.0
—
4.0
—
(*) In accordance with the contract signed, the Banks have committed to make the funds available on demand (with at least 3 days’ notice). As this
is a “Committed” line, the banks have no mechanisms in place not to honor the request for funds made by the Company, without prejudice to the
market standard early mandatory cancellation clauses (Natural contract expiry, Change in control, Borrower illegality, Events of default each as
defined in the contract).
Average maturity of financial liabilities and cost of debt
The average maturity of non-current financial liabilities (including the current portion of medium/long-term
financial liabilities due within 12 months) was 6.75 years.
The average cost of the Group’s debt, considered as the cost for the year calculated on an annual basis and
resulting from the ratio of debt-related expenses to average exposure, stood at 6%, while the average cost of
the Group’s debt “After Lease” was equal to 5.5%.
Current financial assets and liquidity margin
As of December 31, 2024, the TIM Group’s available liquidity margin was equal to 8,364 million euros and
calculated considering:
■
“Cash and cash equivalents” and “Current securities other than investments” for a total of 4,364 million
euros (4,695 million euros at December 31, 2023), also including 199 million euros in repurchase
agreements expiring by January 2025;
■
Sustainability-linked Revolving Credit Facility amounting to 4,000 million euros, totally available.
This margin covers the Group’s non-current financial liabilities (including the portion of the medium/long-term
loans due within twelve months) maturing for at least the next 36 months.
For the purposes of determining the available liquidity margin, the “BTPs July 15, 2028” held by Telecom Italia
Finance S.A. and subject to a securities lending agreement with TIM S.p.A. signed on October 18, 2023 were not
considered; in particular, of the total nominal 131 million euros of securities subject to the loan, a part
corresponding from time to time to a market value of 99 million euros was pledged by TIM S.p.A. on October
25, 2023 against a guarantee bank issued on the same date by MPS in favor of INPS, in support of the
application of Art. 4 of Law no. 92 of June 28, 2012.
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
64
Specifically:
Cash and cash equivalents amounted to 2,924 million euros (2,912 million euros at December 31, 2023).
The different technical forms of investing available cash can be analyzed as follows:
■
maturities: investments have a maximum maturity of three months;
■
counterparty risk: investments by the European companies are made with leading banking, financial and
industrial institutions with high credit quality. Investments by the companies in South America are made
with leading local counterparties;
■
country risk: deposits have been made mainly in major European financial markets.
Current securities other than investments amounted to 1,539 million euros (1,882 million euros at December
31, 2023): These forms of investment represent alternatives to the investment of liquidity with the aim of
improving returns. They included a total of 568 million euros of Italian and foreign treasury bonds held by
Telecom Italia Finance S.A., 548 million euros of bonds purchased by Telecom Italia Finance S.A. with different
maturities, all with an active market and consequently readily convertible into cash, and 423 million euros of
investments in monetary funds by the Brazil Business Unit.
The purchases of the above government bonds, which, pursuant to Consob Communication no. DEM/11070007
of August 5, 2011, represent investments in “Sovereign debt securities”, have been made in accordance with
the Guidelines for the “Management and control of financial risk” adopted by the TIM Group.
Report on Operations of the
TIM Group
Consolidated Financial Position and Cash Flows Performance
65
CONSOLIDATED DATA – TABLES OF DETAIL
To follow, the Separate Consolidated Income Statements, Consolidated Statements of Comprehensive Income,
Consolidated Statements of Financial Position, Consolidated Statements of Cash Flows as well as Other
Information of the TIM Group (NetCo Discontinued Operations).
Separate Consolidated Income Statements
(million euros)
2024
2023
Changes
(a-b)
(a)
(b)
assolute
%
Revenues
14,442
14,311
131
0.9
Other income
233
141
92
65.2
Total operating revenues and other income
14,675
14,452
223
1.5
Acquisition of goods and services
(8,017)
(7,445)
(572)
(7.7)
Employee benefits expenses
(1,478)
(1,950)
472
24.2
Other operating expenses
(662)
(772)
110
14.2
Change in inventories
10
26
(16)
(61.5)
Internally generated assets
297
334
(37)
(11.1)
Operating profit (loss) before depreciation and
amortization, capital gains (losses) and impairment
reversals (losses) on non-current assets (EBITDA)
4,825
4,645
180
3.9
Depreciation and amortization
(3,189)
(3,292)
103
3.1
Gains (losses) on disposals of non-current assets
3
(11)
14
—
Impairment reversals (losses) on non-current assets
(94)
—
(94)
—
Operating profit (loss) (EBIT)
1,545
1,342
203
15.1
Share of losses (profits) of associates and joint ventures
accounted for using the equity method
(20)
(29)
9
31.0
Other income (expenses) from investments
75
53
22
41.5
Finance income
1,044
1,235
(191)
(15.5)
Finance expenses
(2,387)
(2,639)
252
9.5
Profit (loss) before tax from continuing operations
257
(38)
295
—
Income tax expense
(174)
(56)
(118)
—
Profit (loss) from continuing operations
83
(94)
177
—
Profit (loss) from Discontinued operations / Non current
assets held for sale
(447)
(1,013)
566
55.9
Profit (loss) for the year
(364)
(1,107)
743
67.1
Attributable to:
Owners of the Parent
(610)
(1,441)
831
57.7
Non-controlling interests
246
334
(88)
(26.3)
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
66
Consolidated Statements of Comprehensive Income
In accordance with IAS 1 (Presentation of Financial Statements), the following Consolidated Statements of
Comprehensive Income include the Profit (loss) for the year as shown in the Separate Consolidated Income
Statement and all non-owner changes in equity.
(million euros)
2024
2023
Profit (loss) for the year
(a)
(364)
(1,107)
Other components of the Consolidated Statement of Comprehensive
Income
Other items that will not be subsequently reclassified in the
Consolidated Statement of Comprehensive Income
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
9
3
Income tax effect
—
—
(b)
9
3
Remeasurements of employee defined benefit plans (IAS 19):
Actuarial gains (losses)
13
(8)
Income tax effect
—
—
(c)
13
(8)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Income tax effect
—
—
(d)
—
—
Total other components that will not be reclassified subsequently to
Separate Consolidated Income Statement
(e=b+c+d)
22
(5)
Other components that will be reclassified subsequently to Separate
Consolidated Income Statement
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
10
43
Loss (profit) transferred to Separate Consolidated Income Statement
(3)
(9)
Income tax effect
—
(1)
(f)
7
33
Hedging instruments:
Profit (loss) from fair value adjustments
(127)
(382)
Loss (profit) transferred to Separate Consolidated Income Statement
132
192
Income tax effect
(1)
45
(g)
4
(145)
Exchange differences on translating foreign operations:
Profit (loss) on translating foreign operations
(760)
189
Loss (profit) on translating foreign operations transferred to Separate
Consolidated Income Statement
—
—
Income tax effect
—
—
(h)
(760)
189
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Loss (profit) transferred to Separate Consolidated Income Statement
—
—
Income tax effect
—
—
(i)
—
—
Total other components that will be reclassified subsequently to
Separate Consolidated Income Statement
(k=f+g+h+i)
(749)
77
Total other components of the Consolidated Statements of
Comprehensive Income
(m=e+k)
(727)
72
Total comprehensive income (loss) for the year
(a+m)
(1,091)
(1,035)
Attributable to:
Owners of the Parent
(1,057)
(1,432)
Non-controlling interests
(34)
397
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
67
Consolidated Statements of Financial Position
(million euros)
12/31/2024
12/31/2023
Variations
(a)
(b)
(a-b)
Assets
Non-current assets
Intangible assets
Goodwill
11,030
19,170
(8,140)
Intangible assets with a finite useful life
6,011
7,122
(1,111)
17,041
26,292
(9,251)
Tangible assets
Property, plant and equipment owned
4,560
14,692
(10,132)
Rights of use assets
3,467
5,515
(2,048)
Other non-current assets
Investments in associates and joint ventures
accounted for using the equity method
265
537
(272)
Other investments
150
140
10
Non-current financial receivables arising from lease
contracts
40
112
(72)
Other non-current financial assets
646
1,103
(457)
assets
1,795
2,187
(392)
Deferred tax assets
513
701
(188)
3,409
4,780
(1,371)
Total Non-current assets
(a)
28,477
51,279
(22,802)
Current assets
Inventories
297
345
(48)
current assets
4,146
4,699
(553)
Current income tax receivables
124
191
(67)
Current financial assets
Current financial receivables arising from lease
contracts
44
162
(118)
Securities other than investments, other financial
receivables and other current financial assets
1,651
2,571
(920)
Cash and cash equivalents
2,924
2,912
12
4,619
5,645
(1,026)
Current assets sub-total
9,186
10,880
(1,694)
Discontinued operations /Non-current assets held
for sale
of a financial nature
—
—
—
of a non-financial nature
—
—
—
—
—
—
Total Current assets
(b)
9,186
10,880
(1,694)
Total Assets
(a+b)
37,663
62,159
(24,496)
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
68
(million euros)
12/31/2024
12/31/2023
Variations
(a)
(b)
(a-b)
Equity and Liabilities
Equity
Equity attributable to owners of the Parent
11,957
13,646
(1,689)
Non-controlling interests
1,404
3,867
(2,463)
Total Equity
(c)
13,361
17,513
(4,152)
Non-current liabilities
Non-current financial liabilities for financing
contracts and others
8,728
21,284
(12,556)
Non-current financial liabilities for lease contracts
2,421
4,743
(2,322)
Employee benefits
200
511
(311)
Deferred tax liabilities
61
83
(22)
Provisions
485
679
(194)
p y
liabilities
896
1,326
(430)
Total Non-current liabilities
(d)
12,791
28,626
(15,835)
Current liabilities
Current financial liabilities for financing contracts
and others
3,870
5,771
(1,901)
Current financial liabilities for lease contracts
523
838
(315)
p y
current liabilities
7,074
9,384
(2,310)
Current income tax payables
44
27
17
Current liabilities sub-total
11,511
16,020
(4,509)
Liabilities directly associated with Discontinued
operations/Non-current assets held for sale
of a financial nature
—
—
—
of a non-financial nature
—
—
—
—
—
—
Total Current Liabilities
(e)
11,511
16,020
(4,509)
Total Liabilities
(f=d+e)
24,302
44,646
(20,344)
Total Equity and Liabilities
(c+f)
37,663
62,159
(24,496)
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
69
Consolidated Statements of Cash Flows
(million euros)
2024
2023
Cash flows from operating activities:
Profit (loss) from continuing operations
83
(94)
Adjustments for:
Depreciation and amortization
3,189
3,292
Impairment losses (reversals) on non-current assets including investments
94
(6)
Net change in deferred tax assets and liabilities
82
154
Losses (gains) realized on disposals of non-current assets (including
investments)
(73)
(35)
Share of losses (profits) of associates and joint ventures accounted for using
the equity method
20
29
Change in employee benefits
(12)
(264)
Change in inventories
(23)
(11)
Change in trade receivables and other net receivables
138
(5)
Change in trade payables
(80)
28
Net change in income tax receivables/payables
72
(12)
Net change in miscellaneous receivables/payables and other assets/liabilities
(239)
417
Cash flows from (used in) operating activities
(a)
3,251
3,493
Cash flows from investing activities:
Purchases of intangible, tangible and rights of use assets on a cash basis
(1,954)
(2,172)
Contributions for plants received
7
759
Acquisition of control of companies or other businesses, net of cash acquired
(4)
19
Acquisitions/disposals of other investments
(34)
(49)
Change in financial receivables and other financial assets (excluding hedging
and non-hedging derivatives under financial assets)
(1)
2,897
(1,382)
Proceeds from sale that result in a loss of control of subsidiaries or other
businesses, net of cash disposed of
4,169
—
Proceeds from sale/repayments of intangible, tangible and other non-current
assets
280
3
Cash flows from (used in) investing activities
(b)
5,361
(2,822)
Cash flows from financing activities:
Change in current financial liabilities and other
(862)
241
Proceeds from non-current financial liabilities (including current portion)
1,886
4,037
Repayments of non-current financial liabilities (including current portion)
(8,431)
(4,308)
Changes in hedging and non-hedging derivatives
319
68
Share capital proceeds/reimbursements (including subsidiaries)
—
—
Dividends paid
(159)
(273)
Changes in ownership interests in subsidiaries
(8)
(6)
Cash flows from (used in) financing activities
(c)
(7,255)
(241)
Cash flows from (used in) Discontinued operations/Non-current assets held for
sale
(d)
(1,244)
(1,091)
Aggregate cash flows
(e=a+b+c+d)
113
(661)
Net cash and cash equivalents at beginning of the year
(f)
2,912
3,555
Net foreign exchange differences on net cash and cash equivalents
(g)
(101)
18
Net cash and cash equivalents at end of the year
(h=e+f+g)
2,924
2,912
(1) This item includes investments in marketable securities amounting to 2,295 million euros in 2024 (2,342 million euros in 2023) and redemptions
of marketable securities amounting to 2,673 million euros in 2024(1,995 million euros in 2023), relating to TIM S.A. and Telecom Italia Finance S.A..
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
70
Purchases of intangible, tangible and rights of use assets
(million euros)
2024
2023
Purchase of intangible assets
(855)
(838)
Purchase of tangible assets
(1,194)
(1,278)
Purchase of right of use assets
(800)
(716)
Total purchases of intangible, tangible and rights of use assets on a cash basis
(2,849)
(2,832)
Change in payables arising from purchase of intangible, tangible and rights of use
assets
895
660
Total purchases of intangible, tangible and rights of use assets on a cash basis
(1,954)
(2,172)
Additional Cash Flow information
(million euros)
2024
2023
Income taxes (paid) received
(30)
(71)
Interest expense paid
(1,839)
(1,931)
Interest income received
553
718
Dividends received
19
20
Analysis of Net Cash and Cash Equivalents
(million euros)
2024
2023
Net cash and cash equivalents at beginning of the year:
Cash and cash equivalents
2,912
3,555
Bank overdrafts repayable on demand
—
—
2,912
3,555
Net cash and cash equivalents at end of the year:
Cash and cash equivalents
2,924
2,912
Bank overdrafts repayable on demand
—
—
2,924
2,912
The additional disclosures required by IAS 7 are provided in the Note “Net Financial Debt” to the TIM Group
Consolidated Financial Statements at December 31, 2024.
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
71
Other information
Average salaried workforce
(equivalent number)
2024
2023
Change
Average salaried workforce – Italy
14,756
15,936
(1,180)
Average salaried workforce – Outside Italy
8,996
9,162
(166)
Total average salaried workforce
23,752
25,098
(1,346)
Discontinued Operations - NetCo
9,089
18,047
(8,958)
Total average salaried workforce - including Discontinued
Operations (1)
32,841
43,145
(10,304)
(1)
Includes personnel on temporary employment contracts: 18 average salaried staff in Italy in the year 2024; 31 average salaried staff in Italy in
the year 2023.
Headcount at year end
(number)
12/31/2024
12/31/2023
Change
Headcount – Italy
17,521
37,670
(20,149)
Headcount – Outside Italy
9,366
9,510
(144)
Total headcount at year end (1)
26,887
47,180
(20,293)
(1)
Includes agency contract workers: 63 in Italy as of December 31, 2024. 31 employees in Italy at 12.31.2023.
Headcount at year end – Breakdown by Business Unit
(number)
12/31/2024
12/31/2023
Change
Domestic
17,751
37,901
(20,150)
Brazil
9,123
9,267
(144)
Other Operations
13
12
1
Total
26,887
47,180
(20,293)
Report on Operations of the
TIM Group
Consolidated Data – Tables of detail
72
AFTER LEASE INDICATORS
TIM Group, in addition to the conventional financial performance measures established by the IFRS Accounting
Standards, uses certain alternative performance measures in order to present a better understanding of the
trend of operations and financial condition. Specifically, following the adoption of IFRS 16, the TIM Group
presents the following additional alternative performance measures:
LIKE-FOR-LIKE EBITDA AFTER LEASE - TIM GROUP
(million euros)
4th Quarter
2024
4th Quarter
2023
Changes
2024
2023
Changes
absolute
%
absolute
%
Like-for-like ORGANIC EBITDA
1,089
1,017
72
7.1
4,339
4,006
333
8.3
Lease payments
(162)
(153)
(9)
(5.9)
(667)
(670)
3
0.4
Like-for-like EBITDA After Lease (EBITDA-AL)
927
864
63
7.3
3,672
3,336
336
10.1
LIKE-FOR-LIKE EBITDA AFTER LEASE - DOMESTIC
(million euros)
4th Quarter
2024
4th Quarter
2023
Changes
2024
2023
Changes
absolute
%
absolute
%
Like-for-like ORGANIC EBITDA
558
516
42
8.1
2,190
2,023
167
8.3
Lease payments
(43)
(44)
1
2.3
(176)
(166)
(10)
(6.0)
Like-for-like EBITDA After Lease (EBITDA-AL)
515
472
43
9.0
2,014
1,857
157
8.5
EBITDA AFTER LEASE - BRAZIL
(million euros)
4th Quarter
2024
4th Quarter
2023
Changes
2024
2023
Changes
absolute
%
absolute
%
ORGANIC EBITDA excluding non-recurring items
533
503
30
6.3
2,155
1,991
164
8.3
Lease payments (*)
(119)
(109)
(10)
(9.2)
(491)
(504)
13
2.6
EBITDA After Lease (EBITDA-AL)
414
394
20
5.7
1,664
1,487
177
11.9
(*) Does not include approximately 287 million reais in sanctions associated with the decommissioning plan following the acquisition of the Oi
Group’s movable assets; approximately 49 million in 2024 (approx. 238 million reais; approx. 44 million in 2023).
ADJUSTED NET FINANCIAL DEBT AFTER LEASE - TIM GROUP
(million euros)
12/31/2024
31.12.2023
Change
Adjusted Net Financial Debt
10,126
25,656
(15,530)
Leases
(2,860)
(5,307)
2,447
Adjusted Net Financial Debt - After Lease
7,266
20,349
(13,083)
EQUITY FREE CASH FLOW AFTER LEASE - TIM GROUP
(million euros)
2024
2023
Change
Equity Free Cash Flow
243
763
(520)
Lease contract payments (principal share)
(564)
(827)
263
Equity Free Cash Flow After Lease
(321)
(64)
(257)
Report on Operations of the
TIM Group
After Lease indicators
73
ESSENTIAL INTANGIBLE RESOURCES
The TIM Group defines the following resources, without physical substance, on which the business model of
the company fundamentally depends and which constitute a source of value creation for the TIM Group, as
essential intangible resources:
■
Human Capital, which includes sharing and supporting the organization's governance model, risk
management approach and ethical values; the ability to understand, develop and implement an
organization's strategy; the loyalty and commitment to the improvement of processes, goods and services,
including the ability to lead, manage and collaborate; the value provided by employees through the
application of their skills, experience and expertise.
■
Social-Relational Capital, which includes shared rules, behaviors and common values; Relationships with
key stakeholders, as well as the trust and commitment that the organization has developed and strives to
build and protect for the benefit of external stakeholders; the intangible assets associated with the brand
and reputation developed by the organization; the intrinsic value of a company's relationships with its
customers(customer relationships), suppliers, business partners, investors and other key players.
■
Intellectual Capital, which includes intellectual property such as patents, copyrights, software, rights and
licenses; organizational capital, such as implicit knowledge, systems, procedures and protocols; as well as
the value created by the company through its innovations and processes.
Please refer to the note "Intangible assets with a finite useful life" in the Consolidated and Separate Financial
Statements for information on the assets recorded in the balance sheet.
For information on non-budgeted assets and how these resources constitute a source of value creation, please
refer to what is contained within the "TIM Group Sustainability Reporting," Section 1 - General Information and
Section 3 - Social Information.
Report on Operations of the
TIM Group
Essential intangible resources
74
INNOVATION, RESEARCH AND DEVELOPMENT
2024 saw the TIM Group become the spokesperson for cross-cutting innovation activities, central to
technological, market and competitive change. The Technological Innovation and Business Innovation
function, with offices in Turin, Milan, Rome and Catania, employing around 160 people, focuses on activities
that give the Company a competitive advantage in terms of business and technological innovation and
recognition of the brand’s innovative value, both in terms of revenue growth and corporate efficiency. More
generally, TIM employs 1,450 people in Italy in Research and Development activities.
TIM has strengthened its adherence to the Open Innovation paradigm as an operating model by aiming for:
■
the creation of a large ecosystem of partners (start-ups, companies, universities, public administration,
etc), to encourage the meeting of “demand” and “supply”;
■
the creation of lasting relationships with strategic partners;
■
a platform model approach in which TIM provides access to functionalities used by subjects (both internal
and external) involved in the innovation process to create new digital products/services.
Network innovation and 5G based services
TIM continues to extend 5G coverage, with the aim of reaching 90% of the population by 2025, as envisaged in
the Group’s strategic plan. The service is already available in the main cities and in thousands of municipalities
for citizens and businesses at a speed of up to 2 Gigabits per second.
The TIM Group has the best spectrum in Italy, being able to count on more than 100 MHz in the “C-Band” (3.4–
4.2 GHz).
In relation to the NRPP tenders, the targets under the 5G Densification tender have been exceeded as of
December 31, 2023 (achieved 109% of the target).
In 2024, the TIM Group continued to invest in both 4G and 5G technologies to improve the quality of its
network, while in the next two years investments will be focused almost exclusively on 5G, which will enable
the Group to offer better services.
The Group’s “Free to Run” plan involves (i) leveraging 5G to improve quality and enable new operating models,
and (ii) developing and strengthening mission-critical communication and infrastructure monitoring.
In recent years, TIM has participated in more than 30 European research and innovation projects relating to the
evolution of 5G, most notably Horizon Europe, which cover the activities promoted by the 6G Industry
Association. In fact, TIM is one of the most active operators in Europe in terms of number of projects funded
(more than ten new projects in the last three years) and volume of funding. Standout examples include the
recent “6G-Sustain” European project for future mobile network sustainability; 6GREEN (a project for the
energy efficiency of upcoming system) and Trialsnet, which trials innovative 5G solutions.
The benefits of 5G will be evident for:
■
consumers - will be able to access a vast range of innovative services based on the Internet of Things with
devices connected to fitness sensors, cars, radios, air conditioning systems, household appliances and
cameras. Furthermore, it will be possible to enjoy immersive 3D entertainment experiences thanks to the
low latency and high bandwidth capacity of 5G;
■
businesses - new production processes will be enabled which, thanks to the characteristics of 5G
technology and the combination with artificial intelligence, Cloud and Smart robotics, will have greater
efficiency, reliability and safety;
■
citizens - smart cities will become a reality thanks to the availability of data provided by millions of sensors
applied to objects (e.g. electricity poles, traffic lights, etc...) connected to the network. Each municipality
will thus be able to have its own Control Room.
The most recent applications and use scenarios of TIM’s 5G
In November 2024, TIM Enterprise unveiled a project for technological innovation at Borgo Panigale, the home
of Ducati. This was born from the collaboration between TIM and Ducati Corse across global race circuits and
was implemented in partnership with Qualcomm Technologies Inc. The initiative consists of several advanced
technological solutions which TIM Enterprise has developed to explore new and immersive experiences for race
fans. Thanks to TIM Enterprise’s new Virtual Reality digital solutions and 5G technology, visitors to the Ducati
Museum will now be able to soak up the atmosphere of the MotoGP™ Official Ducati Team Box, with a 360°
point-of-view experience in 8K video quality. Visitors can also retrace the history of the iconic Ducati 916 in a
virtual “room of wonders” featuring an interactive collection of images, rare historical images and designs.
Unveiled at the opening was a demonstrative use-case highlighting the potential of 5G-connected robots for
the industrial and logistics environment, with tracking of all motorcycles moving within the new Ducati logistics
hub in Valsamoggia (BO).
In June of last year, a surgical operation was carried out remotely from the La Principina Conference Center in
Grosseto to the Bari General Hospital’s Eye Clinic. This was made possible thanks to TIM’s 5G technology, in
collaboration with Ericsson. The success of remote surgery underscores the potential of 5G technology in this
area and demonstrates how TIM Enterprise provides expertise and infrastructure to the healthcare industry. In
April, the first intercontinental keratoconus telesurgery operation was controlled remotely from the Le
Méridien Convention Center in Dubai and also held at Bari General Hospital’s Eye Clinic. The surgery was
carried out thanks to the 5G technology of TIM, which, in collaboration with Ericsson, installed the appropriate
infrastructure at Bari General Hospital’s Eye Clinic, and made it possible to maintain adequate transmission
latency between the iVis Remote Control Station and the iRes®2 laser. Further precedents were in Rome,
where corneal refractive surgery was remotely managed in two distant locations (La Nuvola Congress Center
and San Carlo di Nancy Hospital), and in Bari, at the General Hospital.
Report on Operations of the
TIM Group
Innovation, research and development
75
In December 2023, in Florence, TIM Enterprise, together with the Opera di Santa Croce, presented a project
that allows you to combine culture and technology to enhance the Italian artistic heritage. Throughout 2024,
visitors will be able to appreciate the works inside the Monumental Complex of Florence in an innovative way
using 5G millimeter wave smartphones, on which an augmented reality application is installed.
TIM 5G for consumer and business customers
TIM offers consumer and business customer all mobile and fixed-mobile commercial offerings with a 5G
profile. In particular, two profiles are on offer to the consumer segment, offering increasingly higher speeds
with less latency: 5G ULTRA up to 2Gbps download and 300Mbps upload speed with mobile network access
priority and 5G with up to 250Mbps download and 75 Mbps upload speed. 5G ULTRA is included in the TIM
Mobile and TIM Young (for under 30s) consumer portfolio and the TIM 5G Power business packages in
Premium+, Unlimited One and Unlimited+ versions. The locations reached by 5G can be found at the following
link: https://www.tim.it/fisso-e-mobile/5g#mp--1669042489.
TIM also offers 5G speed to customers traveling cross-border. With 5G offerings already active and valid in
Italy, customers can automatically benefit from the 5G roaming agreements signed between TIM and its main
partners across many European and international countries. For more details, please visit the website: https://
www.tim.it/fisso-e-mobile/estero/copertura-5g.
5G private network offer for businesses
TIM offers a private 5G network offer for all customers who need dedicated connectivity. The solution
guarantees low latency, high traffic capacity, data security and reliability, components to optimize competitive
success in many market sectors.
TIM offers the ability to build a virtual private network using a dedicated 5G APN; and among its business
support tools, it can provide 5G M2M SIMs with a dedicated management platform.
Smart City
Introduced in Venice in 2020, the Control Room for the smart city of the future brings together in a “control
room” solutions to improve the mobility and safety of the city by creating an urban intelligence model based
on enabling technologies such as IoT, Artificial Intelligence and Cloud.
TIM Enterprise made the implementation of the project possible with the “TIM Urban Genius” solution
developed in collaboration with Olivetti, a Group company specialized in IoT. “TIM Urban Genius” is a console,
equipped with the best digital technologies, which creates a sustainable smart city model capable of
responding even to sudden events, to support the administrations, citizens and for the benefit of the
community and already adopted by several municipalities of large and small sizes. “TIM Urban Genius” uses
the most modern Information Technology technologies, in particular Big Data and Video Analytics and
Machine Learning, Internet of Things, Cloud Computing and 5G to provide information and forecasts in real
time, to support the decisions of the administrations for the control and measurement of the state of the city,
of road and water traffic, for the governance of flows and for assistance with the mobility of citizens, allowing
to intervene quickly or in advance in situations of need and to optimize the planning of services.
In this context, in addition to Venice, numerous other projects have been launched in large cities such as Milan
and Bari as well as in smaller towns like Cairo Montenotte to improve mobility and urban safety, and in Assisi
and Brescia to detect the presence of tourists in the city, based on a special algorithm that allows you to
analyze numbers and origins, starting from the data collected by the mobile telephone network, anonymously
and in full respect of privacy.
TIM is a partner of the new urban laboratory in Turin “La Casa delle tecnologie emergenti - CTE Next” for the
development of strategic sectors such as intelligent mobility, industry 4.0 and innovative urban services. It is a
widespread technology transfer center on emerging technologies enabled by TIM’s 5G.
Since 2022, TIM has been a partner of the CTE COBO (Casa delle Tecnologie Emergenti of the Municipality of
Bologna), which promotes the spread of technological infrastructure throughout the Emilia-Romagna region,
aimed at bringing innovation and sustainable growth in strategic sectors such as: Industry 4.0, Cultural and
Creative Industry and Innovative Urban Services. It is a widespread technology transfer center on emerging
technologies enabled by TIM’s 5G for the development of new generation digital services.
Tourism, Culture & Entertainment
The new extended reality technologies represent valid alternatives for contact with spectators and visitors, for
the use of contents in museum and archaeological contexts and in the promotion of the territory and culture.
The technological platform allows the creation and customization of augmented and virtual reality
experiences and is the result of experiments carried out by TIM’s Innovation area. Numerous solutions are
currently included in the TIM Enterprise catalogue.
In December 2023, in Florence, TIM Enterprise, together with the Opera di Santa Croce, presented a project
that allows you to combine culture and technology to enhance the Italian artistic heritage. Throughout
2024, visitors were able to appreciate the works inside the Monumental Complex of Florence in an innovative
way using 5G millimeter wave smartphones powered by Qualcomm Technologies, on which an augmented
reality application developed by Live Reply is installed. A new way of experiencing art made possible thanks to
the high bandwidth capacity and minimum latency of TIM’s 5G millimeter wave technology and TIM
Enterprise’s Extended Reality solutions.
Since October 2023, TIM has been a partner of the Casa delle Tecnologie Emergenti (CTE) in Naples, an
advanced innovation center in the cultural and creative industries sector being built in the East Naples area.
TIM has created a 5G network infrastructure indoor dedicated to the new technology center. The infrastructure
is aimed at supporting the testing of the services of the companies participating in the project.
Cars, Transport and Ports
The TIM Group, in collaboration with specialized technology partners, acts as an enabler for the adoption of
digital technologies by tourism and cultural institutions and companies. We support them in their digital
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transformation with an ecosystem of state-of-the-art information and telecommunication technologies
capable of innovating business models and developing new user experiences within digital and virtual spaces
in which the cultural offerings of these institutions can be conveyed through a brand-new customer journey. In
all these cases, the 5G network is important for implementing application scenarios in both outdoor and indoor
settings due to its very high transmission capacity and very low latency, which together allow huge amounts of
information to be transferred, with very low response times in remote user interactions.
TIM Enterprise has actively contributed to developing several use cases in tourism, culture and entertainment
by always placing the most innovative technologies at the fingertips of industry specialists.
TIM is the leader of the consortium working on the 5G MASS (Maritime Autonomous Surface Ship) project,
funded by the European Space Agency (ESA) and including CNIT, Cetena, Flysight and Grimaldi. The project
involves the creation of a high-capacity, low-latency private 5G network to support the assisted docking use
case of a ship from Grimaldi’s ECO fleet in the Port of Livorno, thanks to the continuous exchange of
information between the ship and the network. Ports, which are essential to the European economy, have to
manage ever-increasing volumes of goods and are increasingly considering the need to digitize loading and
unloading operations, which also favors shortening port entry and exit times. For further details, visit the
website: https://www.timenterprise.it/approfondimenti/tim-enterprise-rete-privata-5g-livorno.
Other events
TIM promotes the use of new technologies to enhance artistic, historical and archaeological heritage, including
through start-ups and innovative enterprises.
The Amphitheater at Pompeii was the setting for the “Pompeii Echoes” concert event. This offered spectators
a unique immersive experience by generating suggestive interactions between the musical performance, the
set design and the setting’s magical atmosphere thanks to the most advanced digital technologies. The star of
this engaging show was Max Gazzè, who together with a group of exceptional musicians and singers
performed a tribute to Pink Floyd’s concert recorded in Pompeii in 1971.
TIM, in collaboration with Qualcomm, has made advanced Extended Reality techniques and innovative digital
solutions – supported by 5G mmWave technology – available to the public. Thanks to these cutting-edge
technologies, the past was projected into the future by this mix of music, lights and special effects, all against
the magical backdrop of the Amphitheater. This created marriage between the real and the virtual to enhance
the show with unprecedented forms and content.
Industrial automation and robotics
Interconnect, exchange data and remotely manage industrial plants, ensuring greater efficiency, reliability,
safety and significantly improving the production cycle. The use of a dedicated 5G private network achieves the
objectives of very low latency and good data security required by production companies.
In January 2023, TIM Enterprise started a partnership with Ilmea, a metalworking company of Boncore in
Salento, amongst the first in Italy to adopt a private 5G network. TIM’s Private Network 5G solution enables
the interconnection of machines and data production functional to business objectives, with all the advantages
of 5G on a private perimeter: high security, speed, low latency and flexibility. This service responds to the
growing need of companies to accelerate the digitalization process and modernize production chains.
Smart Agriculture
TIM Enterprise offers TIM Easy Farm, the precision agriculture, farm management and supply chain traceability
service developed with Olivetti for companies in the agri-food sector. Thanks to advanced connectivity and the
most innovative technologies such as drones and IoT sensors, Big Data Analytics, artificial intelligence and
blockchain, TIM Easy Farm allows you to optimize field operations and the resources used, achieving a
reduction in costs, greater quality and sustainability of production and the certification of the activity carried
out throughout the entire supply chain, from field to table.
New innovative solutions
With the aim of further strengthening 5G and making its innovative applications a distinctive element in the
delivery of cultural events, TIM Enterprise has prepared a portfolio of innovative tourism and culture solutions
to meet the emerging needs of this market:
■
TIM Extended Reality: a comprehensive offering that provides augmented and virtual reality and
metaverse solutions to give visitors a more immersive experience. Extended reality provides a new way of
engaging with viewers and visitors, and offers viable alternatives to physical tours, allowing access to
valuable and fragile areas and places that are usually not open to the public or are not accessible to people
with disabilities;
■
TIM e-Vent Platform: a platform for phygital or fully digital events, which enhances live or streamed shows
with highly immersive and exciting digital effects; this also combines the latest technologies such as
extended reality, light mapping, project mapping and drone shows;
■
SMI Smart Mapping Interface: a Digital Twin 3D platform that integrates and manages artistic and cultural
heritage assets;
■
Drones for promoting tourism and monitoring events.
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Innovation and research with universities
Funded research activities
TIM also continued to actively participate in innovation and research initiatives funded by the European Union
and national governments in 2024. In particular, TIM took part in international projects covering key issues for
the company. In the four-year period 2018-2021, TIM has participated in more than 50 project proposals
included in European research and innovation programs (such as Connecting Europe Facility, Horizon 2020 and
its recent evolution Horizon Europe), some of which funded to the tune of around 16 million euros. In this
context, funded project activities – covering the topics of 5G, virtualization and smart mobility services and,
more recently, “Beyond 5G” – will help define a new generation of mobile systems in the near future, thus
enabling TIM to add to the body of expertise on the one hand and to acquire and consolidate an internationally
recognized role on the other.
The IPCEI-CIS program
TIM is one of the Italian companies that has been awarded funding under the “Important Projects of Common
European Interest - Cloud Infrastructure Services” (IPCEI-CIS).
The project aims to develop and implement a next-generation “Edge Cloud Continuum” that can offer high
performance in terms of latency and minimum guaranteed bandwidth. It will also ensure open and public
access to all use cases and related open data management; it will ensure security and compliance with EU
data legislation; and it will provide the foundation for new European digital services.
“TIM Edge & Cloud Continuum” is a project launched by TIM under the IPCEIs promoted by the European
Commission to promote and fund collaboration between companies and research centers in the
implementation of innovative and strategic projects dedicated to industrial development and production in
specific sectors.
More specifically, in December 2023 the European Commission authorized the implementation of the first IPCEI
focused on technologies that aim to create a European value chain for Cloud Infrastructure and Services (CIS).
The goal is to foster interoperability and integration of cloud offerings in Europe, the availability of public and
private investment in the Edge and the Cloud, and the entry of new companies into the market, resulting in the
growth of the ecosystem.
Innovation and research with universities
As for research and development activities, TIM has always focused on the creation of a real “Open Innovation
Ecosystem” centered on the collaboration with Italian Universities in order to develop new Open Lab and
Research Projects, as well as through PhD contribution to internalize specialized knowledge, but also for the
sharing of technological trends, heralding new growth opportunities within an increasingly global market.
Open Innovation therefore grafts into an integrated ecosystem with the strategic European and Italian
departments comprising orders, PhDs, PoCs, the development of demo prototypes, Community Open Source,
financed projects and dissemination.
The research with the Universities was undertaken during the second half of 2024 by specifically identifying
real, structured courses on some medium/long-term topics to complete and enrich the internal know-how and
construct an all-round overview; Specifically, the research will involve:
■
setting medium-term paths and collaborations;
■
continuing the Research Agreements by means of specific Framework Agreements with:
•
Polytechnic University of Turin for research projects on AI&Big Data, Edge&Cloud, IoT, Mobility,
Museums, Tourism, Web3, Metaverse, Advanced “quantum-ready” algorithms for real world
applications, Radio Evolution;
•
University of Catania for projects on AI&BigData, IoT, Mobility.
•
University of Milan for studies aimed at modeling and designing a 5G simulator with advanced telco
edge node capabilities, compatible with TIM network specifications and capable of supporting Mobile
Edge Computing nodes;
•
the CNIT on the topic of 5G, with the aim of defining and developing a realistic simulated environment
thanks to the synergic use of MDT data measurement campaigns, network performance data (cell KPI)
and electromagnetic simulation software of TIM’s TIMPLAN radio mobile networks;
•
University of Turin, with research on the topic of AI&HCI;
•
University of Bologna, with research on the topic of 5G;
•
University of Trento and University of Pisa, with research projects on the topic of Radio Evolution.
Here are some details about our innovation and research with universities:
■
research collaborations worth around 960,000 euros for 2024, involving orders across all technology
themes (Mobile, Edge&Cloud, AI, Energy, IoT, Mobility, Industry) with various departments of leading
research centers;
■
the presence of TIM researchers in various capacities in university courses;
■
3 PhD courses financed by TIM;
■
Quantum Academy (first in Italy) with the Polytechnic University of Turin and 5G Academy with the
Federico II University of Naples;
■
collaboration on European projects – in particular on the Horizon and DEP program;
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■
national research programs – in particular the MUR NRRP Measure 4.3 RESTART project.
Proving very fruitful is the collaboration with the research ecosystem in five Industry 4.0 Competence Centers
(Birex, CIM 4.0, Smact, Artes, Meditech) and in the Case delle Tecnologie Emergenti (CTE Next in Turin, Genoa,
Cagliari, Bologna) promoted by MIMIT. These collaborations include the deployment of high performance 5G
radio coverage, such as public access networks, which provide access both to platforms provided by TIM and to
applications available on the Internet, or private access networks, which dedicate the available capacity to the
users involved and provide access to locally available applications. The use cases are focused on Museums and
Cultural Heritage, Smart City, Industry 4.0 and Urban Air Mobility with the development and integration of
technological components relating to Extended Reality, Artificial Intelligence, advanced IoT Monitoring
Systems and Security/Blockchain.
National, European and international standardization
Every year TIM, plans how it will be attend the Standardization, Fora and Open Community Bodies so that its
participation in developing standards will help achieve the strategy for evolving Networks and Services, in
terms of:
■
Telco asset protection (spectrum, network, numbering):
■
Support for expansion into new markets, e.g., Enterprise:
■
Consolidate its position in traditional markets, e.g. Consumer.
Specialized technical oversight of TIM delegates, some of whom also hold leadership roles, is concentrated on
the top priorities for the Telco sphere, such as 5G, IoT, Virtualization, OSS Orchestration and evolution, Artificial
Intelligence, Energy Efficiency, regulatory impacts, etc. By contributing and playing an active role in the bodies
that guide the evolution of these issues, which are crucial for TIM’s business, TIM can influence how these are
developed and achieve optimal solutions in partnership with its vendors of reference and in relation to other
Operators and stakeholders.
The key Entities of strategic importance include:
ETSI (European Telecommunications Standards Institute), which is officially responsible for setting and issuing
telecommunications standards in Europe. It is a European standardization body recognized by the European
Commission for the development of harmonized standards.
ITU (International Telecommunication Union), one of the specialized agencies of the United Nations, which
was established to stimulate international cooperation and foster more effective exploitation of resources used
in telecommunications worldwide, such as numbering and radio spectrum. ITU is divided into 3 sectors: ITU-R
in the radio communications sector; ITU-T in the telecommunications sector; ITU-D in the development sector.
3GPP is a collaborative agreement between entities involved in standardizing telecommunication systems in
different regions of the world. It was formed on occasion of work commencing on 3G (3rd Generation
Partnership Project). The goal is to create technology standards that can be adopted in all major world
markets. These include ETSI (for Europe), ARIB and TTC (Japan), CCSA (China), ATIS (North America), TSDSI
(India) and TTA (Korea). Ever since 3G, the 3GPP has produced technical specifications for all subsequent
mobile radio generations and is working on developments for 6G.
The 6G TIM issue is constantly monitored through two strands:
■
European projects, for example with Hexa-X-II the "flagship" project under Horizon Europe for the pre-
standardization of 6G;
■
the world of standardization with active participation in entities such as the 3GPP, O-RAN Alliance, NGMN
and 6GIA.
These activities prepare TIM for the actual start of work on the topic, which will come into effect in mid-2025
and continue until 2030.
Patents and Intellectual Property Rights1
In 2024, the size of the Group’s patent portfolio remained consistent with previous years. New patent
applications dropped slightly (6 patent applications filed for new inventions), as did the number of new patents
issued during the year. The rationalization of the patent portfolio has led some patents to be abandoned
where, as the technology has evolved, they have shown no potential for further exploitation. The Group’s
patenting areas cover the entire ICT sector, particularly excelling in the mobile sector, particularly on radio
access.
In more detail, TIM’s patent portfolio at the end of 2024, with 450 patented inventions, includes more than
2,350 patent applications and patents issued; the latter have been issued after examination by the European
Patent Office and national patent offices in 14 countries and account for more than 90% of the total. A
significant aspect of patenting activity is the large number of patents arising from collaboration with
universities and research institutes: 15% of patented inventions are the result of such collaborations. Also of
note is participation in several 3G, 4G and 5G patent pools2 managed by Sisvel and Avanci, with TIM’s patented
inventions proving essential to those standards. The patent pools garnered new participants during the year:
specifically, Avanci’s 3G+4G automotive patent pool currently includes 60 “standard essential” patent holders
and has licensed 56 automotive brands.
TIM has a policy for granting recognition to first-time patents and patents that have brought a financial return.
Inventors receive an award that recognizes importance of the patent as evaluated by an internal committee.
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1 Intellectual property rights.
2 In this rea, consortiums of companies agree to jointly license their patents that are required for a given technology that is covered by the
standards.
Innovation, research and development in Brazil
The Technology Innovation department3 is responsible for Technical Research and Development (R&D)
activities; its main tasks are to define technological innovation for the network technology, to identify
evolutionary needs for technologies and devices, converging strategic alliances in order to use the new
business models and guarantee that the network infrastructure evolution is in line with the corporate strategy.
In December 2024, the Technology Innovation function was made up of 27 people, incorporating
telecommunications, electrical and electronic, IT and others with professional skills and experience, which
cover all areas of network and IT knowledge, meeting the need to innovate and support research
and development activities.
The Technology Innovation function continued to work on projects and initiatives to develop TIM’s business,
which can be grouped into the following macro groups:
■
next-generation network;
■
with a positive impact on the environment and society;
■
future Internet applications;
■
Open Lab initiatives.
TIM Lab - TIM Lab is the multifunction environment focused on innovation, which also plays a strategic role in
supporting credibility tests and trials, as well as PoCs (proofs of concepts), collaborating with the main suppliers
and technology partners through knowledge sharing, technological infrastructure for interoperability tests,
staff assessment and the definition of technical requirements; in synergy with the R&D department, it
facilitates innovation activities and promotes collaborations with universities and research institutes.
The TIM Lab Innovation Center has moved to the São Cristóvão district of Rio de Janeiro, in the State of Rio de
Janeiro, has a surface area of 850 m2 and can also be used as an innovation space open to new opportunities,
guiding innovation on the Brazilian telecommunications market and serving as a national point of reference for
research and development4, as well as strengthening the validation capacity regarding new software, features,
solutions, technologies, services and devices and expanding the current structure in order to pursue and
develop more business and opportunities in 2023-2024.
In 2024, TIM Lab worked on 51 type-approvals of mobile devices (41 new smartphones, 4 new software
products, 6 regressions to correct errors) and 15 SIM cards.
TIM Guaratiba Valley – Established in 2019, TIM Guaratiba Valley is an innovation campus for Silicon Valley-
inspired infrastructure solutions. The space covers an area of approximately 10,000 m2 and allows for the
development of network projects focused on efficiency, agility and low cost. The innovations produced include
urban furnishings, such as flowerpots and park benches, biosites, off-grid sites, and extremely low-cost (ELC)
solutions used in the Sky Coverage Project, as well as remote monitoring initiatives, security solutions, and
testing and approval of batteries and direct current power sources used in base transceiver stations (BTS). In
2023, TIM S.A. launched the Secure Site project in collaboration with the Security area to demonstrate/test
security solutions in general, with the goal of mitigating equipment theft at our sites. On the B2B-project front,
TIM S.A. has developed a Zero Footprint site that will be used, for instance, to provide 4G coverage on
highways.
Next generation network projects
The reallocation of the 1,800 MHz, 850 MHz, and 2,100 MHz bands from 2G/3G to 4G continues, with a
multilayer deployment configuration, bringing important competitive advantages for TIM S.A, such as reducing
the cost of LTE deployment, enabling the carrier aggregation strategy, improving the customer experience
through higher throughput, and better indoor coverage (the use of the 850/1,800/2,100 MHz bandwidths could
increase capacity in cities already covered by the 2.6 GHz LTE bandwidth, with little additional cost). In this
scenario, more than 99% of current LTE terminals are compatible with our available LTE bands. Therefore, the
implementation of the multilayer LTE continues to be an excellent strategy that benefits from the spread of
devices.
Since the end of 2022, TIM SA has covered all cities in Brazil, ensuring 100% presence nationwide (with any
technology). By the end of 2023, 100% of Brazilian towns and cities (5,570) had 4G coverage. The
implementation of the 700 MHz LTE layer has continued to significantly improve coverage expansion and
indoor penetration, promoting the presence of LTE on a national level, and consolidating TIM S.A.’s leadership
in LTE.
In addition, since 2022 TIM S.A. has been deploying sites with band n78 (3,500 MHz), according to the
regulatory rollout specified in the auction, which means that all capitals in Brazil have 5G SA (Standalone)
coverage from TIM. TIM is also the leader among its competitors in 5G coverage: as of December 2024, TIM has
607 towns and cities covered by 5G, serving more than 67% of the urban population. This frequency band has a
bandwidth of 100 MHz, which offers higher throughput.
In February 2024, TIM achieved the speed record in the Americas (11.6 Gbps) when it tested 5.5G (5G
Advanced) technology in the TIM lab.
Another highlight is support for TIM’s IoT strategy, where NB-IoT network coverage has reached more than
5,000 towns and cities nationwide. This provides an important basis for exploring new business opportunities.
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3 Architecture & Technology Evolution within the Chief Technology Office (CTO).
4TIM Lab of TIM S.A. also collaborates with TIM Lab Italy, which has more than 50 years of experience.
Projects entailing a reduction of energy consumption
The expansion of “LTE RAN Sharing”, in partnership with other mobile operators in Brazil to fulfill regulatory
obligations from the 4G spectrum auction, aims to define the architectural requirements, technical
assumptions and specifications for the “LTE RAN sharing5” solution, optimizing network resources and costs6.
At present, this is the largest agreement for RAN sharing worldwide and it supplies 4G services to the main
cities of Brazil.
The RAN sharing agreement allows TIM SA to further the spread of LTE in Brazilian rural areas, thanks to
effective sharing of spectrum, access and backhaul. Now, following the acquisition of Oi, the RAN LTE sharing
solution is a partnership between TIM SA and Telefónica, based on the MOCN architecture, which has
expanded the advantages and efficiency of this technical model. The energy consumption recorded for the
site, dependent on the access technology and coverage conditions, showed a reduction of up to 10%.
In December 2019, TIM S.A. and Telefónica stipulated new sharing contracts aimed at increasing the network
cost efficiency through the following initiatives:
■
Single network: sharing of the 3G and 4G networks in cities with fewer than 30 thousand inhabitants
in which both operators provide their services. The underlying idea is to have, in the cities included in the
agreement, a single telecommunications infrastructure that is entirely shared by the operators,
thereby allowing them to switch off redundant sites and save on energy, rent and maintenance costs. This
also allows for greater efficiency in future investments thanks to the sharing of the spectrum in MOCN
mode. As of May 2021, each party had increased its 3G and 4G coverage in more than 300 towns and cities
with a total of 422 shared sites each. From 2021 up to the end of 2024, we included other towns and cities
within the single network agreement providing 3G and 4G coverage. One of the operators has switched off
the 3G and 4G networks in more than 380 towns and cities (resulting in 23% implementation of the
agreement perimeter).
■
2G switch-off: nationwide sharing of the 2G network using GWCN technology, enabling both operators to
switch off part (approximately 50%) of their network with the same technology, consequently saving on
energy and maintenance costs. By the end of 2024, TIM was sharing its 2G network across 785 towns and
cities under the sharing agreement, including in major cities such as Rio de Janeiro, Curitiba, Fortaleza,
Brasilia, Belem and Recife. During the same period, Vivo was sharing its 2G network across 1,063 cities,
including in cities such as Belo Horizonte, Salvador, Manaus, Porto Alegre and Campinas (by the end of
2024, about 80% of the agreement perimeter had been implemented).
RAN Sharing (Single Network and 2G Switch-off) projects are continuing to be rolled out in 2025, bringing
substantial savings in energy consumption.
Next generation network projects, future Internet applications, positive
impact on the environment and society
5G for the automotive segment - in June 2023, in collaboration with Stellantis, IP Facens (the Research
Institute of the Facens University Center) and the universities of USP - São Carlos, UFSCAR and the German
Technische Hochschule Ingolstadt (THI), TIM announced the launch of the project “Conecta 2030: Ecosistema
connesso e cooperativo per rilevare dei pedoni agli incroci” (Conecta 2030: connected, cooperative ecosystem
to detect pedestrians at crossroads), aimed at creating a collaborative environment focused on initiatives
assuring the safety of pedestrians and cyclists. Henceforth, the companies involved in Conecta 2030 will need
to address the challenge of developing a concept-ecosystem from 2023 to 2026, for the development and
implementation of advanced driver assistance systems (ADAS), based on three main pillars: 5G connectivity,
artificial intelligence and digital twins.
Also in the automotive sector, another partnership ws launched in 2024 between TIM, UFPE (Federal University
of Pernambuco) and Stellantis (along with other companies and universities), which is also supported by the
Brazilian government’s “Rota 2030” program promoting research and innovation in the vertical automotive
segment through the “Vehicle OTA” project.
The main goal of this project is to implement a secure and integrated electronic module capable of promoting
OTA (Over-The-Air) firmware updates in vehicles’ electronic control units (ECUs).
Private Networks - In 2022, TIM started offering private networks, with edge core and Multi-Access Edge
Computing (MEC) capabilities on the customer premises, allowing the deployment of high throughput, low-
latency, and high availability services on 5G. The first implementation was in 2023 and involved a customer in
the port logistics segment. Also in 2022, TIM ran a Proof of Concept with a customer in the automotive
industry, successfully demonstrating an automated quality conformance use case. An RFI was launched in
2024 to understand the current ecosystem of private network providers, and a new solution will be readied in
2025 to meet the needs of business customers.
5G Fund — In 2023 TIM announced another strategic investment to map technology-based solutions. In
collaboration with investment manager Upload Ventures, which specializes in investments in companies
operating in the B2B and B2B2C segments, TIM created the 5G Fund, which aims to promote companies in
different sectors of the economy. The goal is to contribute to the development of companies, including
startups, by providing financial support especially to those that already have coherent business models, and to
support defined growth plans by leveraging our industrial and technological assets. The 5G Fund plans to make
between eight and ten investments over a two- to three-year period, each with an average investment of 20
million to 25 million dollars.
5G RedCap — In 2024, the Technology Innovation team worked to determine and validate TIM’s 5G RedCap
solution, the new 5G standard designed to address low-power, battery-efficient 5G use-cases (eMBB, uRLLC
and mMTC).
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5 Sharing the Radio Access Network - RAN.
6 Infrastructure costs are mainly associated with the introduction of new radiating systems and other electronic components, passive site
infrastructure and transport networks; therefore, the sharing of the resources supplied by LTE RAN makes for a significant optimization of costs for
telecommunications operators.
Open Lab initiatives
TIM S.A. joined the Telecom Infra Project (TIP) in 2017, an initiative founded by Facebook, SK
Telecom, Deutsche Telekom, Nokia, Intel and other companies, which aims to create a new approach to
building and implementing the telecommunications network infrastructure. Tim S.A. transformed TIM Lab into
the first TIP Community Lab in Latin America, available to Tip members to create universal standards for
solutions (initially transport networks, Open Optical Packet Transport working group) so as to overcome the
challenges related to interoperability of different supplier products.
In 2018, TIM S.A. also joined, together with Vodafone and Telefonica, a new working group within the TIP,
called DCSG (Disaggregated Cell Site Gateway7). This project offers an opportunity to define a common set of
operator requirements and coordinate with companies that manufacture devices, which have wider and more
flexible capacities and are cheaper; in June this year, the main functions of the solution were demonstrated
with the help of Facebook, core EDGE suppliers and TIP members.
Finally, in 2020, TIM S.A. and the TIP partners completed their validation of the TSS (Total Site Solution),
an inexpensive, unrestricted 4G NodeB solution, powered by solar energy and connected by satellite to the
core TIM S.A. network, to be used in remote zones with low population density. Since then, Tim has also
adhered to other initiatives, like OpenRAN with the Open Field project, to validate OpenRAN 4G and 5G
solutions focused on the separation of hardware and software at RAN level. This latter initiative ended in
March 2023, when TIP scaled back its business in Latin America, but before this it was possible to validate the
Open RAN 5G SA TIP test plan with an Open RAN 5G supplier.
5G Open Labs Brazil with UFPE — In April 2023, TIM and UFPE (Federal University of Pernambuco) signed a
memorandum of intent to jointly carry out teaching, research, dissemination and innovation activities involving
the exchange of technical and scientific information, particularly in the area of ICT.
Living Lab 5G — In January 2024, TIM entered into an agreement with the City of Florianópolis and ACATE
(Catarinense Technological Association) for a technical collaboration with the City of Florianópolis, in which
connectivity infrastructure will be provided for the Living Lab 5G Florianópolis program. This urban lab will
leverage the real city environment to test and validate technological innovations and business models using
5G technology. Innovative solutions will be considered for testing in areas such as security, sanitation, and
urban mobility. This partnership aims to encourage open innovation and to contribute to growth and digital
transformation in sectors such as education, healthcare, transportation and security, which will derive benefit
from the 5G network.
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7 Based on an open and unbundled architecture, the new DCSG is designed for the economic backhaul of cellular site traffic on existing mobile
networks and emerging 5G infrastructures.
EVENTS AFTER DECEMBER 31, 2024
See the Note “Events after December 31, 2024” in the Consolidated Financial Statements of the TIM Group and
the Separate Financial Statements of TIM S.p.A. for the year ending December 31, 2024.
BUSINESS OUTLOOK FOR THE YEAR 2025
Below are the TIM Group's 2025-2027 financial targets (organic data, excluding Sparkle and the effects of the
1998 concession fee refund)1:
■
Group revenues to rise by 3% on average per annum over the entire plan period (CAGR 2024-2027) from
13.7 billion euros pro-forma in 2024; for TIM Domestic revenues to grow by 2-3% on average per annum
over the three-year period from 9.4 billion euros pro-forma in 2024. For 2025, Group revenues are expected
to grow by 2-3%, and by 1-2% for TIM Domestic.
■
Group organic EBITDA After Lease to rise 6-7% per annum on average over the entire plan horizon (CAGR
2024-2027) from 3.6 billion euros pro forma in 2024; for TIM Domestic, EBITDA After Lease to grow by 5-6%
on average per annum over the three-year period from 1.9 billion euros pro-forma in 2024. For 2025, Group
organic EBITDA After Lease is to grow by approximately 7%, and 5-6% for TIM Domestic.
■
Group CapEx of about 14% of revenues in 2025, falling to around 13% in 2027; TIM Domestic CapEx of
12-13% in 2025, falling to about 11% in 2027
***
■
Equity Free Cash Flow After Lease2 of approximately 0.5 billion euros in 20253, approximately 0.9 billion
euros in 2026, and approximately 1.1 billion euros in 2027, for a total of approximately 2.5 billion euros
accumulated over the plan period.
■
Organic reduction in Group debt, with a Net Debt After Lease/EBITDA After Lease ratio of less than 1.9x in
20254.
The Group expects continued decline in debt for the two years 2026-2027, with a potential leverage of 1.1x.
TIM will be able to seize all the opportunities that the evolution of its financial position will offer, confirming its
commitment to keep leverage below 1.7x at the end of 2027, which is a “best in class” level among European
peers.
For financial years 2026 and 2027, TIM aims to remunerate its shareholders with an amount equal to about
70% of Equity Free Cash Flow After Lease, net of dividends for TIM Brasil’s minority shareholders, resulting in a
payout of approximately 0.5 billion euros in 2027 and approximately 0.6 billion euros in 2028. The company
also aims, during 2026, to pay its shareholders an additional remuneration linked to the sale of Sparkle5 and
amounting to about 50% of the proceeds (about 0.35 billion euros).
Shareholder remuneration will be subject to the availability of distributable reserves, and approval of the Board
of Directors and Shareholders’ Meeting.
With regard to the individual entities comprising the TIM Group, the industrial plan sets out the following
strategic lines:
■
TIM Consumer: core business revenues will continue to stabilize, with an improvement in the downward
trend in lines and growth in ARPU, and with greater customer convergence between fixed and mobile. In
parallel, the ‘Customer Platform’ model will accelerate by expanding current services, launching utilities for
small and medium-sized businesses in 2025, expected to generate €200 million in cumulative revenues by
2027, and other high value-added sectors in 2026, resulting in ‘Beyond Connectivity’ revenue growth of
more than 10% over the plan period. Investments on the mobile network will enable accelerated
development of 5G, which leverages the country’s biggest spectrum and data transport network, and
customer migration to FTTH will continue.
■
TIM Enterprise: Leveraging its unique positioning and competitive advantages, the acceleration of service
revenues driven by further expansion in the ICT market will continue, with an evolution of offerings toward
higher value-added services, amplified by positioning on key growth sectors (Cloud, IoT, Cybersecurity). The
revenue mix includes a stable absolute value contribution from the connectivity business and growth in ICT
revenues, which will exceed 70% of total revenues. The value of contracts is expected to grow to over 5
billion euros in 2027. On the Cloud front, TIM Enterprise will continue to invest in its Data Center network,
with a new facility operational by the end of 2026 to be added to the existing 16, plus the upgrading of two
more Data Centers, for a total of about 200 million euros in investments over the plan period, increasing
installed capacity by more than 25%.
■
TIM Brasil: Further revenue growth is expected, at a rate above inflation, together with consolidation of
market leadership, including through expansion of key vertical markets and a focus on cost efficiency and
digitization of services.
The Group will invest around 6 billion euros over the plan period, aiming to consolidate its leadership and
distinctive offerings in areas such as 5G, Cloud, IoT and artificial intelligence.
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Events after December 31, 2024
83
1 Excluding non-recurring items, changes in the scope of consolidation, and fluctuations in exchange rates. Group data with an average exchange
rate of 5.83 R$/€. The 2025-2027 perimeter excludes the income contribution of Sparkle and any proceeds associated with the sale of the company.
2024 has been reworked by excluding Sparkle’s contribution.
2 TIM Brasil cash flow based on annual exchange rate published by Bloomberg Survey and based on projections of major banks at January 9, 2025
(average exchange rate @ 6.18R$/€ in ’25, 6.37R$/€ in ’26 and 6.20R$/€ in ’27).
3 Including the repayment of the concession fee for 1998 the Equity Free Cash Flow AL for 2025 of the TIM Group would amount to about 1.5 billion
euros.
4 Adj. net debt AL/Organic EBITDA AL. TIM Brasil net debt based on consensus of exchange rate evolution (EoP exchange rate at R$6,21/€ in 2025).
Including the effect of the reimbursement of the concession fee for 1998 on net debt, leverage would be about 1.7x.
5 Assuming closing of the transaction in the first quarter of 2026.
At the Domestic level, the plan also includes an extension of the cost transformation project, with a cumulative
target of additional cost reduction and total investment of over 700 million euros to 2027, driven by the
simplification and downsizing of cost structures. There will be a focus on efficiency in the Consumer area and
internalization of resources and skills in the Enterprise area, with the aim of mitigating cost trends related to
the change in revenue mix.
ESG and innovation is also at the heart of the strategic plan, setting four key objectives – people growth,
sustainable infrastructure, cybersecurity, and technology transformation – for which the Group has identified
quantitative targets that will guide the entire organization.
TIM reaffirms its commitment to driving change toward gender parity (target of 35.5% female managers by
2027, with full gender parity maintained on the Boards of Directors of Group companies). In general, the plan
aims to create a dynamic work environment in which collaboration, merit and a desire to innovate are the
engines for growth. Training and reskilling will focus on innovation, specifically the adoption of AI in
organizational processes and gaining new skills for the increasing development of services and solutions based
on new technologies.
Environmental targets (100% renewable energy by 2025 and Net Zero by 2040) represent an opportunity for
the Group to further optimize the consumption energy and other resources, reduce operating costs and
minimize risks related to energy price fluctuations, and leverage leadership on environmental impact in
competitive scenarios consistent with regulation.
Cybersecurity is a strategic priority, with the strengthening of security code, automated testing and an
advanced anomaly detection system. There will be a strong push on technology transformation, with targeted
investments in ICT, adoption of network-to-cloud, and the integration of AI into operational and decision-
making processes.
Finally, the Group is targeting 17% growth per year in innovative services, with the goal of further
strengthening the deployment of solutions with high social and environmental impact, such as applications for
smart cities and digitization of the public administration, i.e. services that will enact the Italian digital transition.
In conclusion, the 2025-2027 business plan integrates business and financial objectives with ESG targets that
aim to create a working environment fit for the ongoing drive for innovation in the global market, while also
promoting operational efficiency, stimulating innovation, and ensuring effective risk management and control.
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Business Outlook for the year 2025
84
MAIN RISKS AND UNCERTAINTIES
Risk management is a strategic value-creation tool for the TIM Group, which has adopted an Enterprise Risk
Management model, which is continuously being improved and aligned with international regulations and
standards and enables risks to be identified, assessed and managed in a homogenous way within the Group,
highlighting potential synergies between the players involved in the assessment of the Internal Control and
Risk Management System.
The Enterprise Risk Management process is integrated with strategic and operational planning processes and is
designed to identify potential events that may affect the company’s business so that these risks can be
managed within acceptable limits (i.e. keeping risks at a level that does not compromise the TIM Group’s
financial, operational and reputational stability), providing a reference framework to support the achievement
of its Business Plan.
In addition, the TIM Group, which has always been attentive to sustainability issues, recognizes and integrates
risks considered material by internal and external stakeholders, and/or inferred from the dual materiality
analysis, based on financial materiality, which influences the company’s income and financial performance,
and impact materiality, which highlights how the company’s activities may affect the environment, society and
stakeholders, contributing to a more comprehensive and sustainable risk management.
The Enterprise Risk Management model adopted by the TIM Group:
■
identifies and updates, in cooperation with the Risk Owners, the overall portfolio of risks to which the Group
is exposed through analysis of the Business Plan and the most significant investment projects;
■
monitors the reference context (i.e., macroeconomic and regulatory) in order to update specific analyses of
the risks to which the company’s assets may be exposed in order to intercept any changes and/or new risk
scenarios, periodically updating the Group’s risk profile;
■
quantitatively assesses risks both individually and from a portfolio perspective, taking possible correlations
into account;
■
supports management in defining risk appetite and related tolerances that are preliminarily validated by
the Control and Risk Committee (CRC) and subsequently approved by the Board of Directors (BoD);
■
supports management in defining and monitoring risk mitigation plans and also periodically updates the
CRC on the level of risk detected, again with respect to approved tolerances, and this documentation is
then submitted for final approval to the Board of Directors;
■
manages the flow of information to top management and the bodies responsible for evaluating the
Internal Control and Risk Management System (ICRMS) periodically or at the express request of the Control
Bodies;
■
periodically convenes the ERM Steering Committee for the purpose of documenting and communicating to
the respective Risk Owners the risk profile with respect to the approved tolerances, in order to promptly
intervene with appropriate remedial actions when necessary and/or as indicated by management.
By way of non-exhaustive list, the main risk factors analyzed and described in the following paragraphs are
given below: evolution of the market environment and competitive scenarios by business segment, including
scenarios of potential new competitor entries; potential proceedings brought by the Authorities and
consequent delays in implementing new strategies; potential critical issues in the supply chain; possible cyber
attacks on the most relevant applications; issues related to regulation of the use of artificial intelligence; issues
related to new networks and infrastructures; obligations related to the Italian Government’s exercise of special
powers (Golden Power), the effects of which will be assessed in terms of the strategic choices and the
development of the Plan’s objectives over time.
These risk factors, for each issue deemed material from an Environmental, Social and Governance (ESG)
perspective and based on the relevant sustainability dimension, are described within the Sustainability
Statement within this Report on Operations, in the sections “General Information - Management of Impacts,
Risks and Opportunities”, “Environmental Information”, “Social Information”, and “Governance Information”,
consistent with the European legislation set out in the Corporate Sustainability Reporting Directive (CSRD) and
its implementing decree 125/2024.
Risks related to the business and industry
Risks related to competition
The telecommunications market continues to maintain a high level of competition that for the TIM Group
entails potential risks of a reduction in its market share and/or an impact on market prices. In addition,
Swisscom’s recent acquisition of Vodafone Italia has created a more significant competitor for TIM – one that is
dominant in some geographic areas as well as vertically integrated – which could exert more competition,
particularly in the Business segment.
Competition in the telecommunications market is also affected by the strategies of adjacent sectors (e.g.,
energy) where operators have expanded their services by also offering integrated offerings that include fiber
connectivity. There is also the entry to the market of low-orbit satellite operators, which, in the event of
disparity in regulatory conditions between satellite and terrestrial operators, could create a risk of unfair
competition to TIM’s disadvantage, posing an additional competitive threat.
In addition to the traditional services of the core business, competition on the innovative services and
converging offers market remains significant, with this extending towards the world of content, which
increases both opportunities and risks for the operators.
Competitive risks in the Brazilian market lie in the rapid transition of the business model tied to both traditional
services and the more innovative ones. As the consumption patterns of the customer base change (migration
from voice to data services), service providers need to act swiftly in upgrading their infrastructure and
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Main risks and uncertainties
85
modernizing their portfolios of products and services. In this situation, TIM Brasil may not be able to respond in
a timely manner to the rapid development of technology and infrastructure.
Risks associated with agreements with Suppliers and Partners
The TIM Group maintains important relationships with various suppliers of hardware, software and services
which it uses for the operation of its network and systems and for customer assistance. It also relies on third
parties to supply network equipment, smart devices, software licenses and accessories needed for its business.
To guarantee transmission capacity and quality levels necessary for the growing number of customers and
their changing needs, it also relies on the electronic communications networks of other operators and on the
networks created by some local authorities, (i.e. FiberCop, Fastweb, Open Fiber, A2A, Lepida).
In the event that one or more suppliers of the TIM Group should be unable to provide the required products
and/or services, this could affect the Group’s ability to fully control its networks, offer high-quality services, and
could result in additional costs with a material adverse impact on its business, financial position, cash flows
and/or operating results.
The TIM Group also avails of a series of subcontractors for the maintenance of its network, the management of
its call centers and the supply, installation and maintenance of terminals in its customers’ homes. Although
operating with a limited number of subcontractors that it carefully selects and monitors, it is not always
possible to guarantee that their tasks are carried out correctly and fully compliant with the required quality
and safety standards or that the tasks are not further assigned to other third party contractors.
In the event that hardware or software products are defective or service levels provided by third-party
contractors do not meet contractual requirements or are not performed properly, customer relationships and
brand reputation may suffer.
The TIM Group has agreed multi-year contracts for the hosting and management of its network equipment,
and for distribution of television content which oblige it to pay the counterparties a minimum guaranteed
amount. The evaluation of such multi-year contracts, and the estimation of costs associated with them, are
subject to a number of risks and uncertainties which include, among others, market dynamics,
pronouncements of market regulatory authorities and the development of new technologies at service
support. These estimates are reviewed periodically on the basis of actual data in order to ensure that the
forecast data remain within meaningful ranges. Not all the factors mentioned are under the control of TIM and
could therefore have a significant impact on future forecasts regarding the performance of the contracts, the
estimated margin and/or the cash flows that will be generated.
From an ESG perspective, suppliers contribute substantially to TIM’s overall environmental impact. In this light,
failure to effectively engage suppliers in reducing CO2 emissions can pose a risk to the company in terms of
failing to meet climate goals, with economic and reputational impacts.
Risks following the sale of NetCo
With the sale of NetCo and the subsequent transfer of the fixed infrastructure, as of July 1, 2024 FiberCop
became the exclusive wholesale provider of ADSL and FTTC connectivity, the leading FTTH connectivity
provider in Italy, and the largest provider in the TIM Group.
The TIM Group and FiberCop signed a Service Agreement regulating their mutual supply relationships. Under
this deal, the TIM Group will acquire wholesale fixed-line access services from FiberCop to provide its fixed-line
services to retail customers.
The Service Agreement will evaluated by the relevant Authorities (AGCOM and AGCM) and the agreed
economic conditions could change as a result of those proceedings, which could generate positive or negative
impacts for the TIM Group.
If FiberCop’s services are inadequate or if FiberCop ceases to provide these services, the TIM Group may not be
able to provide all or part of its fixed-line services to residential customers.As a result, demand for products
and services could be significantly affected, in turn materially and adversely impacting the business, financial
position and operating results.
If FiberCop fails to develop and maintain its fixed network, or suffers a major disruption, slowdown or problem
in the supply chain, the TIM Group’s business, financial position and operating results could also be significantly
impacted.
Risks related to the development of networks and ICT
The TIM Group, in order to maintain and expand its customer base in each of the markets in which it operates,
constantly maintains and develops its existing networks. A reliable and high-quality network is necessary to
maintain the customer base and protect the Company’s revenues from erosion.
The maintenance and improvement of existing installations depend on the Group’s ability to:
■
deliver network development plans within the time-frames contemplated by business development plans
and with the necessary level of effectiveness/efficiency;
■
upgrade the capabilities of the networks to provide customers with services that are closer to their needs;
■
increase the geographical coverage of innovative services;
■
upgrade the structure of the systems and the networks to adapt it to new technologies;
■
sustain the necessary level of capital expenditure in the long term;
■
expand the capacity of its existing fixed and mobile networks to cope with the increased use of the
bandwidth.
If TIM fails to maintain and develop networks, it may be less attractive to new customers and/or may lose
market share to competitors.
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Unforeseeable instant increase in traffic
Considerable, unforeseeable instant increases in traffic due, for example, to live video events streamed on the
network by an OTT (Over The Top) may, in some cases, have a major impact on the overall performance of the
TIM network for the entire duration of the event, causing slow-downs or temporary blocks to communication,
with consequences in terms of reputation and customer satisfaction.
4.5G/5G Broadband and the Internet
The continuous development of internet and broadband services, is a strategic goal for the TIM Group to
increase the use of its networks. Its capacity to successfully implement this strategy may be negatively
impacted if:
■
mobile Broadband coverage does not grow as expected;
■
the competition grows through to including contiguous market players or technological developments
introducing new platforms to access and/or distribute the Internet;
■
the company is unable to provide superior broadband services to those offered by its competitors;
■
service interruptions or capacity problems with the network infrastructure occur;
■
there are delays in obtaining necessary permits and authorizations;
■
supply shocks occur in the procurement of materials and devices;
■
adequate returns are not obtained from investments related to network development.
The implementation of broadband mobile technologies depends on a series of factors, including the availability
and selection of cutting-edge technologies by suppliers of TIM networks/platforms and devices. If the Group is
unable to achieve its goals for the implementation of an adequate UBB (Ultrabroadband) mobile coverage, it
may lose market share to its competitors in this strategically important segment.
Each of the aforementioned factors can negatively impact the correct implementation of strategy and,
consequently, business and operating results.
Failure to meet coverage targets and technological transformation of legacy infrastructure and platforms can
limit the supply of high-speed connectivity and reduce the quality of service offered, with consequences for
customer experience, cash flows and corporate reputation.
ICT assets and services to support the Business
The ICT market and in particular the market for cloud services in both the private and public segments is
growing continuously.
The TIM Group also holds a 45% stake in the Polo Strategico Nazionale (“PSN”), which deals with the design,
preparation, setup and management of infrastructures for the provision of cloud services and solutions. for
Italian local and national public administrations.
The Group’s strategies, such as the implementation of new technology infrastructure (i.e., Data Centers),
partnerships with major global players, and a series of innovative proprietary IT solutions, are assets available
for executing a growth strategy in this area.
The rapid rate of technological innovation and fierce competition are the main challenges that need to be
addressed and managed, as they pose a risk in terms of revenues and margins, requiring careful and timely
evaluation of investments. This highly competitive market sees the continuous entry of new national and
international players, who compete for market share, continually changing the balance in this sector with a
possible impact on the TIM Group’s Plan objectives.
Risks and challenges relating to the implementation of AI solutions
The market for Artificial Intelligence (AI) related services is also rapidly developing. TIM, which partners
companies and public administrations in enabling the country’s digital transformation, has set up a technology
hub in Turin to develop and test further AI solutions, while also adopting an ethical and responsible approach
to managing the new risks deriving from integrating AI into business processes, such as:
■
Compliance with laws and regulations (i.e. European regulation on artificial intelligence - EU AI Act);
■
data quality (big data and data analytics);
■
The technological infrastructure and its interoperability with systems.
To meet this challenge, TIM is managing new risks related to the use of AI solutions and systems, such as:
■
regulatory non-compliance;
■
breach of privacy and data security;
■
discrimination (fairness in the treatment of groups of people);
■
distortive effects produced by AI systems;
■
sustainability of investments in AI;
■
cyber security.
The potential effects of these risk factors would have significant economic, legal and reputational impacts on
the Company. In order to mitigate such possible impacts, TIM has chosen to adopt centralized governance by
establishing a multifunctional team with cross-functional expertise.
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Cyber security risks
Cyber risk is on the increase worldwide and as such requires continual monitoring by TIM, given the sheer
amount of IT assets the company manages in terms of own TLC infrastructure and assets necessary to deliver
services to customers, some of which, considered essential, come under the scope of legislation governing the
National Cyber Security Perimeter.
Cyber attacks can interrupt availability of service and compromise data, putting the company’s reputation as
supplier of critical national infrastructures at risk, as well as resulting in financial losses, reduction of market
share and regulatory sanctions.
Despite efforts to keep its applications constantly updated and replace outdated systems, they may be
vulnerable and subject to cyber attacks from internal and external sources, which could cause service
unavailability and compromise data, posing a significant risk to the Group’s reputation.
The company works to prevent and limit the impact of cyber attacks, but absolute protection cannot be
guaranteed.
In view of these considerations, particular attention was paid to protecting systems from main threats (e.g.
viruses, malware, data theft). With a wide range of attackers (Cyber-Criminals, Cyber-Terrorists, Insiders, etc.),
the Group carries out activities not only to safeguard its infrastructure but also – with a strong sense of
responsibility – to protect customers’ information assets, that are a priority target for the company and for the
country system.
With regard to the prevention phase, the Group oversees cyber risk analyses by setting out security plans for
the company’s IT assets in order to identify in advance the actions necessary to mitigate cyber risk and to
ensure the adoption of a security-by-design approach. This approach also includes overseeing the plans behind
these actions and verifying their actual implementation in the field.
The Group has also set up advanced testing labs to test the security level of equipment and systems before
they are put into operation, as well as isolated environments dedicated to identifying possible vulnerabilities in
hardware and software products deployed.
As for its identification of and response to cyber attacks, the Security Operation Center (SOC), operates 24/7,
365 days a year, in order to manage IT security incidents and help limit their impacts. In addition, in order to
partially mitigate any economic and financial impacts from cyber attacks, the TIM Group has structured a
specific risk transfer policy through dedicated insurance coverage.
As regards the understanding and prevention of cyber threats, TIM is equipped with a dedicated Cyber Threat
Intelligence structure which acquires, processes and uses data and information from multiple external sources
(public, private, institutional and the deep and dark web) to increase its capacity to identify and timely combat
emerging threats and outline evolving risk and threat scenarios.
Information exchanges and collaboration with the National Cyber Security Agency (ACN) and other institutions
(e.g. National Cybercrime Center for the Protection of Critical Infrastructures - CNAIPIC) are included in this
context.
The TIM Group continues to act in coordination with the Agency for National Cyber Security (ACN) and, in
particular, given the geopolitical context and in view of the evolution of information exchanges at the
European and NATO levels, has raised the alert level in relation to cyber risk.
The inability to operate the TIM Group’s networks and systems as a result of cyber attacks, even for a limited
period of time, could result in significant expenses, a loss of market share, lower revenues from business
interruption, and higher litigation costs. A major safety incident and/or business interruption and/or failure to
comply with applicable laws and regulations could result in financial loss, reputational damage, loss of market
share, and penalties.
As cyber attacks continue to evolve, the TIM Group could incur significant costs to improve protection
measures and/or remediate any vulnerabilities. The loss of confidential or proprietary data through a breach
could have a material adverse effect on TIM Group’s business, financial position, operating results, and
prospects.
For more details, please refer to the 2024 TIM Group Sustainability Statement section [48 d], [AR 18].
Business Continuity Risks
The success of the TIM Group largely depends on the continuous performance of its IT systems, network and
data centers that it manages for customers. The operations of the Group require large amounts of data to be
processed and stored every day, ensuring that they are uninterruptedly and accurately transmitted, stored,
and available in real-time in accordance with applicable law.
The technical infrastructure of the TIM and the assets managed on behalf of customers are vulnerable to
damage or interruptions caused by technological failures, blackouts, floods, storms, fires, terrorist acts, illegal
acts, human errors and similar events. Any of these events could negatively affect customer satisfaction,
damaging the company’s reputation.
TIM has adopted a “Business Continuity Management System” (BCMS) framework, in line with international
standards, to analyze and prevent the above-mentioned threats. It considers Business Continuity to be
fundamental for the protection of the Group’s value and reputation, for the delivery of its services, and for full
compliance with customer contracts, industry regulations, and, more generally, reference methodologies and
best practices.
TIM has also put in place an insurance program to cover Business Interruption risks with reference to the
activities carried out in the Group’s Data Centers.
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Fraud risks
Technological progress means that increasingly sophisticated tools and techniques, which are quick acting and
have a considerable economic impact are available for the perpetration of fraud and abuse.
“Conventional” phenomena such as subscription, interconnection, and commercial fraud currently generate
the highest part of revenue loss and will continue to be significant in the near future, however new types of
Internet-style fraud are gradually gaining more ground (Internet spamming/phishing, service reselling, VoIP
bypass, etc.). Furthermore, some specific types of offered services (e.g. wholesale international
interconnection, voice or data services, premium services) are potentially at risk of third party use for the
construction of fictitious transaction schemes, tax avoidance offenses and/or international money laundering.
The TIM Group has had an established organizational model based on the governance of fraud in place for
some time. It envisages a series of fraud risk assessments that, together with the evidence of internal and
external fraud management, help identify, plan and monitor the operative supervision of the prevention of and
fight against fraud. TIM has also put in place an insurance program that provides coverage for certain types of
fraud risks.
Risks related to climate change
The transfer of the network to FiberCop resulted in a reduction of the total emission impact for the TIM Group
and a redistribution of the type of emissions produced. In more detail: on the one hand, the downsizing of civil
and industrial infrastructure has reduced emissions related to production activities (Scope 1) and energy
purchases (Scope 2), resulting in TIM Group’s having a lower exposure to volatile prices for the energy itself. On
the other hand, the increase in emissions related to production activities in the supply chain (fixed-line
wholesale services, management services for industrial and civil properties, and energy) requires TIM Group to
increase its efforts to guide suppliers’ decarbonization actions in order to avoid the risk of not meeting climate
commitments, with repercussions on corporate reputation and access to sustainable finance.
The national and European regulatory environment related to environmental issues continues to be a factor to
watch as it could lead to an increase in electricity prices, a change in the availability of renewable energy
certificates, and/or the possible introduction of a carbon tax, resulting in higher operating costs for the TIM
Group.
There is also the risk that the worsening of climatic conditions and the increase in global average temperatures
increases the probability and severity of extreme weather events, such as heat waves, flooding and wind
storms that can cause major interruptions to telecommunications and ICT services, reduce the efficiency of
work (hours effectively worked) and may consequently impact the business. The probability and gravity of
extreme weather events can also result in the need for additional investments in cooling technology and other,
more resilient infrastructures. In this regard, TIM has put in place a specific insurance program to cover natural
catastrophic risks.
For more details, please refer to the 2024 TIM Group Sustainability Statement section [48 d], [AR 18].
Risks associated with staff engagement
The ability to attract and retain qualified and motivated staff is a key factor in ensuring the pursuit of strategic
goals while ensuring high levels of service and customer satisfaction.
The Group’s new organizational structure, which saw a reduction in the number of employees in 2024 as a
result of the divestment of the network infrastructure, confirms the focus on equal opportunity and inclusion
as a way to reduce the risk of gender inequality in terms of pay, positions of responsibility and career paths,
with consequences for talent attraction and retention.
Financial risks
The TIM Group may be exposed to financial risks, such as risks arising from fluctuations in interest rates and
exchange rates, credit risk, liquidity risk and risks related to the performance of the equity markets in general,
and, more specifically, risks related to the performance of the share price of the TIM Group companies.
Generally, TIM hedges foreign currency exposure but not translation risk related to its foreign subsidiaries,
however, for FY 2024 and also for FY 2025, it was decided to hedge a material portion of the exposure to
fluctuations in the Euro - Brazilian Real exchange rate in order to mitigate the effect of volatility at the level of
Group Consolidated Equity Free Cash Flow. It should be noted, however, that these realized hedges may not be
able to fully protect the Group from adverse exchange rate movements.
According to the Group policies, hedging of the exposure in foreign currencies is mandatory when relating to
the financial liabilities. Therefore, the TIM Group – which has stipulated and may continue to stipulate a portion
of financing in currencies other than the euro – in line with its risk management policies, generally covers this
exposure to exchange rate risk through cross-currency and interest rate swaps.
The TIM Group is also exposed to the interest rate risk on the portion of its consolidated gross debt that is
index-linked to variable rates. The decision to maintain a certain debt structure at fixed and variable rates aims
to minimize the negative impact of the interest paid and is partially achieved through the use of derivatives,
through which variable-rate liabilities are synthetically converted into fixed-rate instruments. Any change to
interest rates that has not been adequately hedged by derivatives may have an impact on the economic
profile of TIM’s variable rate financial liabilities, which may have negative impacts on the results of its
transactions and on cash flows.
An increase in sovereign spreads and the risk of default they reflect, in the countries in which the TIM Group
operates, may impact the value of its assets in such countries.
TIM may also be exposed to financial risks such as those linked to the performance of the stock markets in
general and, more specifically, risks linked to the trend of the share price of the TIM Group companies.
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These risks may adversely impact the earnings and the financial structure of the Group. Accordingly, to
manage those risks, the TIM Group has established guidelines, at central level, which must be followed for
operational management, identification of the most suitable financial instruments to meet set goals, and
monitoring the results achieved.
In particolare, per mitigare il rischio di liquidità, il Gruppo TIM ha l’obiettivo di mantenere un “adeguato livello di
flessibilità finanziaria”, in termini di disponibilità liquide e linee di credito sindacate committed, che consenta la
copertura delle esigenze di rifinanziamento almeno dei successivi 12-18 mesi.
Commercial Credit Risk
The operations of the TIM Group depend significantly on the ability of its customers to pay for its services. In
the domestic market, TIM uses predictive analytical models both to assess customers’ credit risk and to apply
credit management and recovery actions consistent with its contractual terms and regulations, with a view to
taking timely action to maximize collections.
In Brazil, pursuant to Anatel legislation, the TIM Group is authorized to take certain measures to reduce
customer defaults, such as limiting the services provided to customers with a history of defaults.
If the TIM Group is unable to take measures to limit its customers’ missed payments or to allow it to accept
new customers based on credit history, the TIM Group will remain exposed to the risk of insolvency.
Risks related to macroeconomic factors
The TIM Group’s economic and financial situation, including its ability to sustain the expected level of cash
flows and margins, is influenced by multiple macroeconomic factors such as economic growth, consumer
confidence, interest rates, inflation and the exchange rates in the markets in which it operates.
The latest data released by ISTAT in December point to a slowdown in the Italian economy in 2024 compared
to forecasts at the beginning of the year. The slowdown also extends to growth forecasts for 2025. The
scenario formulated by the Bank of Italy, in line with that of ISTAT, assumes +1% growth on average over the
forecast period 2025-2027. Under both scenarios, next year’s growth is supported by domestic demand, which
is also improving due to lower unemployment rates. The outlook for foreign demand, on the other hand, is
weighed down by uncertainty over the trade policies of the new U.S. Administration and developments in the
geopolitical framework.
Energy prices continue to be a variable to be closely watched. The recent increase in gas prices due to the
aftermath of the conflict between Russia and Ukraine could affect inflation and consumption, resulting in a
deterioration in the macroeconomic environment and affecting business conditions.
Compared to previous assessments, the Central Bank of Brazil released a data update in December revising its
2024 GDP growth estimates upward, reflecting an improvement for the services sector that offsets declining
estimates for agriculture and industry. GDP projections for 2025 stand at +2.1%, driven mainly by the expected
increase in household consumption.
Inflation for 2024 is expected to rise from previous estimates, exceeding the target set and last year’s value.
The inflation forecast for 2025 has also increased compared to the previous projections. Despite the approval
of the package of measures to reduce government spending and interest rate increases to contain inflation,
the possible introduction of tariffs by the new U.S. Administration and a generalized distrust of Brazilian fiscal
policies could delay the stabilization of the exchange rate, which has been highly volatile and significantly
depreciated against the euro during 2024.
Geopolitical uncertainty
Ongoing developments in the geopolitical context have an indirect impact on the TIM Group’s business, mainly
related to the repercussions that may occur on energy, materials and transportation costs, which to date
remain contained, but could prove more significant following developments related to the conflict between
Russia and Ukraine and the tension in the Middle East.
The reduction in the volume of gas from Russia to the European Union due to recent developments in the
Russia-Ukraine conflict could increase the cost of energy. It should be noted that the TIM Group has
implemented a hedging program that, on the domestic front, has enabled it to procure most of the 2025
requirements in advance.
The inauguration of the new U.S. Administration will lead to a shift in the country’s foreign policy choices. This
could affect both geopolitical balances and the evolution of international trade, and also affect imports of
advanced technological and digital systems.
The current uncertain geopolitical environment and ongoing tensions may have global consequences and
increase risks for the TIM Group. Such risks include the security and protection of the workforce, the possibility
that cyber attacks may strike the infrastructure and data of the company or its customers, an increased
probability of a shock of the supply chain that would entail higher inflation in the short and medium term.
Pandemic risk
Although the peak of the Covid-19 pandemic has passed, the possibility of new outbreaks due to new variants
cannot be excluded entirely. This could impact the TIM Group’s operations and may lead to a decline in
roaming volumes, lesser customer growth, an increase in bad debt, negative effects on network maintenance
and the supply chain with a consequent reduction in margins, revenues or delays in cash flows.
Report on Operations of the
TIM Group
Main risks and uncertainties
90
Risks relating to the legislative and regulatory context
The TIM Group may be exposed to risks of non-compliance (Compliance Risks) due to non-observance/breach
of internal (self- regulation, such as, for example, bylaws, code of ethics) and external rules (laws, regulations,
new accounting standards and Authority orders), with consequent judicial or administrative penalties, financial
losses or reputational damage.
The company aims to ensure that processes, and, therefore, the procedures and systems governing them, and
corporate conduct comply with legal requirements. The risk is associated with potential time lags in making
the processes compliant with regulatory changes or whenever non-conformances are identified and is
monitored by the dedicated internal control system.
The TIM Group has to deal with disputes and litigation with tax authorities and government agencies,
regulators, competition authorities, other telecommunications operators and other entities. The possible
impacts of such proceedings are generally uncertain. In the event of settlement unfavorable to the Group,
these issues may, individually or as whole, have an adverse effect, which may even be significant, on its
operating results, financial position and cash flows.
Regulatory risks
The electronic communications industry is highly regulated. As such, new decisions by the Italian
Communications Authority (AGCOM) may lead to changes in the regulatory framework that may affect the
expected results of the Group and the guidance announced to the market. In addition, the structure of the
fixed and mobile markets results in high levels of scrutiny from the AGCM (the Italian Competition Authority)
over competition in the sector.
The main elements that introduce uncertainty are:
■
lack of predictability in start-up timing and consequent final decisions in new proceedings by AGCOM and
AGCM (the Italian Competition Authority);
■
AGCOM decisions about pricing policies for wholesale fixed network services, which could potentially
impact the profit margins of services provided to end customers;
■
AGCOM decisions that can influence the technological choices, with potential impact on the timing of
return on infrastructure investment;
■
any AGCM (the Italian Competition Authority) decisions that can limit TIM’s competitive capacity (for
example, in terms of minimum retail prices to guarantee market competitiveness);
■
any AGCOM or AGCM (the Italian Competition Authority) decisions that impose constraints on the pricing
or conditions of fixed-line and mobile offers on the basis of consumer protection legislation.
General Data Protection Regulation (GDPR)
Regulation (EU) 2016/679 (General Data Protection Regulation, GDPR), which became directly applicable as
from May 25, 2018 and has been enacted in Italy by Legislative Decree no. 101/2018 has increased
administrative fines considerably compared to the Data Protection Act previously in effect, and in some cases
fines of up to 20 million euros may be administered, or in the case of companies, of up to 4% of their global
annual turnover of the previous year, if this amount is higher than 20 million euros.
All necessary initiatives are adopted in order to guarantee the conformity of personal data processing with the
GDPR and the Personal Data Protection Code (Italian Legislative Decree no. 196 of June 30, 2003).
The Company’s operative processes have been adapted according to the principle of privacy-by-design, with
special attention paid to the commercial, relations with customers and technological processes, adopting the
methods defined by corporate regulations dedicated to the application of the GDPR and the provisions of the
Data Protection Authority. Personal data processing, where specific risks are entailed, is subject to preventive
Privacy Impact Assessment (PIA) according to the indications of the European Data Protection Board (EDPB), it
is censused and the related responsibilities are attributed to the suitable managerial level of the Company’s
organization, as envisaged by the Privacy Code in application of the accountability principle laid down by the
GDPR.
The TIM Group constantly monitors the evolution of the rules, regulations and opinions adopted by the Data
Protection Authority (GPDP), takes all steps necessary to ensure compliance with such provisions and carries
out checks on the processes and activities deemed most at risk.
However, the risk of shortcomings in the implementation of security measures, in compliance with legal
requirements governing data processing, in applying rules on data storage, in notifying data breaches by the
mandatory strict (and narrow) deadlines, could lead to disputes with the data protection authority and
sanctions. In addition, the risk of personal data breach can lead to disputes with data subjects and reputational
damages, consequently impacting the Group’s business and operating results.
Health and Safety at Work
The Company has exposure to several workplace health and safety risks that could have significant impacts.
These include the possibility of injuries caused by unsafe working conditions or unforeseen accidents, as well as
the risk of occupational disease due to exposure to harmful substances and job-related stress. In addition, any
non-compliance with health and safety regulations could result in legal sanctions and damage to the
Company’s reputation. Occupational accidents and illnesses can lead to work disruptions, which reducing
operational efficiency and increase costs. There is also the risk of significant compensation costs in case of
work-related injuries or illnesses.
To mitigate these risks, the Company ensures that it complies with all legislative requirements in occupational
health and safety. This includes assessing risks to workers’ safety and health with a view to continually
minimizing those risks, as well as preparing Risk Assessment Documents. The Company has principles,
Report on Operations of the
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Main risks and uncertainties
91
standards and solutions in place aimed at achieving “zero workplace accidents”. This involves implementing
prevention measures and verifying that they are adequate and effective.
Key tools in this regard are schemes to raise awareness and involve employees in the Company’s health and
safety policies and objectives, as well as providing training and information on the risks and control measures
implemented to mitigate said risk.
For more details, please refer to the 2024 TIM Group Sustainability Statement section, [48 d], [AR 18], [ESRS
S1].
Golden Power
The issuing of the so-called “Golden Power” Decrees, with reference primarily to Legislative Decree no. 21/2012,
aimed at attributing to the State special powers on corporate structures in the sectors of Defense and National
Security, as well as for activities of strategic importance, in the specific Telecommunications sector, affects the
public-private relationship, enriching the value of technological assets and services included in the Golden
Power perimeter due to the institutional purpose pursued. This could, on the one hand, limit TIM’s autonomy in
carrying out its activities in the area of strategic services, but on the other hand, TIM, as a strategic operator,
can guarantee advantages to its shareholders by making any change of control more complex, thus protecting
investments and guaranteeing a higher level of security of strategic assets and services.
In summary, the Prime Minister established that the Company is subject to the obligations pursuant to
Legislative Decree no. 21/2012 (the “Golden Power Decree”, setting out special powers rules) in the provision of
September 28, 2017, as a business that:
■
carries out “activities of strategic importance for the defense and national security system” (as per article 1
of the Decree Law) and
■
possesses networks and systems “necessary to ensure the minimum supply and operation of essential
public services” and goods and relationships “of strategic importance for the national interest” in the
communications sector (as per article 2 of the same Decree Law).
Failure to comply with these obligations, provided that the facts do not constitute a crime, shall result in the
imposition of administrative fines of up to twice the value of the transaction, but in no case less than 1% of the
company's turnover or the cumulative turnover of the companies involved in the last financial year for which
the budget was approved.
The regulatory architecture relating to TIM led to the issuing of the Prime Ministerial Decrees of October 16 and
November 2 in 2017.
With the ruling of October 16, 2017, the Prime Minister exercised the special powers provided for in article 1 of
Legislative Decree no. 21/2012 by imposing specific provisions and conditions on TIM and the subsidiaries
Telecom Italia Sparkle and Telsy. Amongst others, the measures concern corporate and organizational
governance; in particular, the obligation is imposed to ensure the presence on the respective Boards of
Directors of a Security Chief Executive Officer – currently coinciding with the Chief Executive Officer – (who has
Italian citizenship and security authorization), as well as the establishment of a Security Organization unit. The
latter, directed by the Security Officer, is responsible for activities relevant to national security and is involved in
all decision-making processes relating to strategic activities and the network.
With a ruling on November 2, 2017, the Prime Minister’s Office also exercised the special powers provided for in
article 2 of the Legislative Decree no. 21/2012, through the imposition on TIM of further requirements and
conditions with the aim of assuring suitable development plans, able to guarantee a continuity of supply of the
universal service.
In case of non-compliance or violation of the provisions and conditions imposed by the two Prime Ministerial
Decrees of 2017, the application of the sanctions referred to in Legislative Decree no. 21/2012 mentioned
above.
The government’s ruling has subsequently evolved through Decree Law no. 21/2022 (Urgent measures to
combat the economic and humanitarian effects of the Ukraine crisis), converted with amendments by Italian
Law no. 51/2022, which introduced new features regarding both corporate management and 5G technology-
based communication services.
As regards the latter issue, by this Decree, the legislator renewed the close attention paid to 5G, insofar as an
activity of strategic importance for defense and national security, extending the scope of reference from the
non-EU supplies taken as reference by the previous Law no. 41 of 2019 to include any supply relating to 5G,
regardless of the geographic location in which the supplier is based, and redefined the State’s special powers.
More specifically, the Decree made it mandatory for companies to preventively notify the Presidency of the
Council of Ministers an Annual Purchasing Plan of goods and services in 5G technology, with the possibility of
making four-monthly updates.
The Plan is subject to approval by the government, which may potentially also lay down conditions or
requirements; failure to notify results in a sanction being applied to the company in the amount of up to 3% of
its turnover.
In relation to the annual plans presented by TIM in July 2022 and May 2023, the Presidency of the Council of
Ministers exercised the special powers provided for by the Art. 1-bis of Legislative Decree 21/2012, through the
imposition of specific requirements in order to protect the essential interests of defense and national security.
The 5G 2024 plan submitted to the Authority in August was approved without prescriptions on September 27,
2024.
Report on Operations of the
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Main risks and uncertainties
92
National Cyber Security Perimeter
The framework of provisions regarding National Security has flanked the Golden Power regulations with those
relating to the National Cyber Security Perimeter (PSNC), established by Law no. 133/2019, converting Decree
Law no. 105/2019.
The regulations in this area are hinged on three elements, governed by the subsequent implementing decrees,
which constitute the same number of obligations for TIM, as strategic operator: the adoption of security
measures aimed at guaranteeing high security levels for ICT assets, the secure award of ICT supplies and the
notification of security incidents.
Compliance with the obligations laid down by regulations governing the PSNC means, for TIM, an impact in
organizational terms and as regards operative processes, in line with the restrictions aiming to guarantee a
high level of security of networks, information systems and the computer services of public administrations,
public and private operators and entities based in Italy, in consideration of the fact that such elements are
responsible for the performance of a service that is essential for the maintenance of civil, social or economic
activities, fundamental for the interests of the State and the malfunctioning, interruption, even partial, or
improper use of which could damage national security.
Failure to comply with regulatory obligations in the PSNC area for TIM entails administrative sanctions that can
reach up to 1.8 million euros. Furthermore, the use of products and services in the absence of the required
communications to the relevant authorities, or of passing the tests or in violation of the established conditions
may lead to the application of the additional administrative sanction of inability to assume management,
administration and control roles. in legal entities and businesses, for a period of three years starting from the
date of discovery of the violation. Finally, anyone providing information, data or elements of fact that are not
true, in order to hinder or impact procedures and inspections and supervision, shall be punished by
imprisonment from one to three years.
Report on Operations of the
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Main risks and uncertainties
93
INFORMATION FOR INVESTORS
Share capital of TIM S.p.A. at December 31, 2024
Share Capital
11,677,002,855.10 euros
Number of ordinary shares (without nominal value)
15,329,466,496
Number of savings shares (without nominal value)
6,027,791,699
Number of TIM S.p.A. ordinary treasury shares
96,442,802
Percentage of ordinary treasury shares held by the Group to total share capital
0.45%
Market capitalization (based on December 2024 average prices)
5,507 million euros
On May 25, 2016, the Shareholders’ Meeting approved amendments to the company name, introducing the
name “TIM S.p.A.” as an alternative to “Telecom Italia S.p.A.”.
TIM S.p.A. ordinary and savings shares are listed on the Italian stock exchange (FTSE index), whereas the
ordinary shares of TIM S.A. are listed in Brazil under B3.
Code
TIM - Telecom Italia
TIM S.A.
ordinary shares
savings shares
Stock exchange
IT0003497168
IT0003497176
BRTIMSACNOR5
Bloomberg
TIT IM
TITR IM
TIMS3 BZ
Reuters
TLIT.MI
TLITn.MI
TIMS3.SA
Ordinary shares of TIM S.A. were also listed on the NYSE (New York Stock Exchange); share prices are set
through ADS (American Depositary Shares) representing 5 ordinary shares of TIM S.A.
Shareholders
Shareholder composition according to the Shareholders Book at December 31, 2024, supplemented by
communications received and other available sources of information (ordinary shares):
Italian institutions 4.33%
Vivendi 23.75%
Cassa Depositi e Prestiti 9.81%
Foreign Institutions 40.64%
Other shareholders 20.84%
TIM Group 0.63%
Report on Operations of the
TIM Group
Information for Investors
94
Major Holdings in Share Capital
As of December 31, 2024, based on the results of the Shareholders' Register, communications made to Consob
and the Company pursuant to Article 120 of Legislative Decree no. 58 of February 24, 1998, and other available
information, there were the following significant holdings (above the 3% threshold) in the ordinary share
capital of TIM S.p.A:
Holder
Type of ownership
Percentage of ownership
Vivendi S.A.
Direct
23.75%
Cassa Depositi e Prestiti S.p.A.
Direct
9.81%
On February 19, 2025, "Notification of Relevant Shareholding - Form 120A" was received indicating the relevant
shareholding of Poste Italiane S.p.A. in place of Cassa Depositi e Prestiti S.p.A. for the same percentage.
On March 21, 2025, a "Notification of major shareholding - Form 120A" was filed indicating the change in
Vivendi S.A.'s major holding from 23.75% to 18.374%.
Common Representatives
The special meeting of the savings shareholders held on June 28, 2022 renewed the appointment of Dario
Trevisan as the common representative for three financial years, up to the approval of the financial statements
for the year ended December 31, 2024. Upon completion of the shareholders’ meeting called to approve the
financial statements for the year 2024, the general category meeting will be called to renew the common
representative of savings shareholders.
Rating
At December 31, 2024, the three rating agencies – Standard & Poor’s, Moody’s and Fitch Ratings – rated TIM as
follows:
Rating as of 12/31/2024
Rating as of 12/31/2024
Rating
Outlook
Rating
Outlook
STANDARD & POOR’S
BB
stable
BB
stable
MOODY'S
Ba3
positive
Ba3
positive
FITCH RATINGS
BB
stable
BB
stable
Waiver of the obligation to publish disclosure documents for
extraordinary transactions
On January 17, 2013, the Board of Directors of TIM S.p.A. resolved to exercise the option, as per article 70
subsection 8 and article 71 subsection 1-bis of the Consob Regulation 11971/99, to waive the obligations to
publish disclosure documents in the event of significant operations such as mergers, demergers, capital
increases by means of the transfer of assets in kind, acquisitions and disposals.
Conditions for the listing of shares of parent companies
established and regulated by the law of states outside the
European Union
TIM S.p.A. confirms the existence as at December 31, 2024 of the conditions referred to in article 15, subsection
1, letter a), b) and c), point i) of Consob Regulation no. 20249/2017 as amended, for the listing of their shares on
regulated markets.
Report on Operations of the
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Information for Investors
95
RELATED-PARTY TRANSACTIONS
Pursuant to Art. 5, paragraphs 8 and 9, of Consob Regulation no. 17221 of March 12, 2010 concerning "Related-
party transactions" and subsequent amendments, in the 2024 financial year there are no transactions of
greater importance, as defined by the Art. 4, paragraph 1, letter. a) of the aforementioned regulation which
have significantly influenced the financial situation or results of the TIM Group and of TIM S.p.A..
It should also be noted that on October 4, 2024, at the same time as receiving the first non-binding offer for
the purchase of Telecom Italia Sparkle, the Board of Directors identified the Ministry of Economy and Finance
(MEF) as a related party of TIM. For the purpose of the 2024 financial statements, as required by IAS 24
paragraph 26, a qualitative analysis was carried out on existing relationships with MEF subsidiaries. This
analysis showed that these relationships are mainly related to purchases of goods and services (energy,
transportation, postal services) that are conducted at normal market conditions.
In addition, there were no transactions concluded in 2024 that significantly impacted the equity position or
results of the TIM Group and TIM S.p.A., nor were there any changes or developments with respect to the
related-party transactions described in the 2023 Report on Operations which had a significant effect on the
financial position or on the performance of the TIM Group and TIM S.p.A. in 2024. It should also be noted that
on February 12, 2025, TIM's Board of Directors reviewed and approved the binding offer for the purchase of
TIM's 100% stake in Sparkle, received the previous day from the Ministry of Economy and Finance (MEF) and
Retelit.
The evaluation of the purchase offer followed the provisions relating to transactions with related parties of
greater importance, in accordance with applicable regulations, the MEF qualifying as such. The Related Parties
Committee, after extensive and thorough consideration, gave a favorable opinion.
Related-party transactions, when not dictated by specific laws, were conducted at arm’s length. They were
performed in compliance with the internal procedure, which sets forth rules designed to ensure the
transparency and fairness of the transactions in accordance with Consob Regulation 17221/2010. The current
procedure is available on the website gruppotim.it, under the Group - Governance - Governance Tools - Other
Codes and Procedures section.
For information on relationships with related parties, see the Financial Statement Statements and the
"Related-party transactions" Note of the Consolidated Financial Statements and the Separate Financial
Statements.
Report on Operations of the
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Related-party transactions
96
ALTERNATIVE PERFORMANCE MEASURES
In addition to the conventional financial performance measures established by IFRS Accounting Standards, the
TIM Group uses certain alternative performance measures in its internal presentations (business plan) and in
external presentations (to analysts and investors) for the purposes of enabling a better understanding of the
performance of its operations and its financial position. These measures in fact represent a useful unit of
measurement for assessing the operating performance of the Group (as a whole and at Business Unit level).
Such measures, which are presented in the periodical financial reports (annual and interim), should, however,
not be considered as a substitute for those required by IFRS Accounting Standards. As these measurements
are not defined by the IFRS Accounting Standards, their calculation may differ from the alternative indicators
published by other companies. This is why comparability between companies may be limited.
The alternative performance measures normally used are described below:
■
EBITDA: this measure is used by TIM as the financial target, in addition to the EBIT. These measures are
calculated as follows:
Profit (loss) before tax from continuing operations
+ Finance expenses
- Finance income
+/- Other expenses (income) from investments (1)
+/- Share of losses (profits) of associates and joint ventures accounted for using the equity
method (2)
EBIT – Operating profit (loss)
+/- Impairment losses (reversals) of non-current assets
+/- c) Capital losses (gains) from non-current assets
+ Depreciation and amortization
EBITDA - Operating profit (loss) before depreciation and amortization, capital gains (losses) and impairment reversals
(losses) on non-current assets
(1) Expenses (income) from investments for TIM S.p.A.
(2) Line item in Group consolidated financial statements only.
■
In this document, following the NetCo disposal transaction, in order to provide a better understanding of
the business’s performance, organic economic and financial information relating to the operating
performance in 2024 and 2023 of the business in the “TIM ServCo” perimeter is presented below, restated
based on operating data. Such organic information is prepared by simulating the separation operation of
the fixed network, with the creation of the NetCo component and the consequent definition of the TIM
ServCo perimeter, as it had occurred at the start of the reference period (January 1). Therefore, for all
organic data the like-for-like definition is used to highlight both organic information (Brazil Business Unit)
and organic information as reconstructed above (TIM S.p.A, Domestic Business Unit, TIM Group), simulating
for the first half of 2024, the impact of the relationship between TIM and NetCo/FiberCop, regulated by the
Master Service Agreement (MSA) and recording, for the second half of the year, the actual accounting
impact of the MSA and the Transitional Services Agreement (TSA).
■
EBITDA margin and EBIT margin: TIM believes that these margins represent useful indicator of the ability
of the Group (as a whole and at Business Unit level) to generate profits from its revenues. In fact, EBITDA
margin and EBIT margin measure the operating performance of an entity by analyzing the percentage of
revenues that are converted into EBITDA and EBIT, respectively.
■
Net financial debt: TIM believes that the Net Financial Debt represents an accurate indicator of its ability to
meet its financial obligations. It is represented by Gross Financial Debt less Cash and Cash Equivalents and
other Financial Assets. The TIM Group presents a table showing the amounts taken from the statements of
financial position and used to calculate the Net Financial Debt of the Group.
To provide a better representation of the true performance of Net Financial Debt, in addition to the usual
indicator (renamed “Net financial debt carrying amount”), the TIM Group reports a measure called
“Adjusted net financial debt”, which neutralizes the effects caused by the volatility of financial markets.
Given that some components of the fair value measurement of derivatives (contracts for setting the
exchange and interest rate for contractual flows) and of derivatives embedded in other financial
instruments do not result in actual monetary settlement, the Adjusted net financial debt excludes these
purely accounting and non-monetary effects (including the effects of IFRS 13 – Fair Value Measurement)
from the measurement of derivatives and related financial assets/liabilities.
Report on Operations of the
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Alternative performance measures
97
Net financial debt is calculated as follows:
+
Non-current financial liabilities
+
Current financial liabilities
+
Financial liabilities directly related to discontinued operations / held-for-sale non-current assets
A)
Gross financial debt
+
Non-current financial assets
+
Current financial assets
+
Financial assets included within discontinued operations / held-for-sale non-current assets
B)
Financial assets
C=(A - B)
Net financial debt carrying amount
D)
Reversal of fair value measurement of derivatives and related financial liabilities/assets
E=(C + D)
Adjusted Net Financial Debt
■
Equity Free Cash Flow (EFCF): this financial measure represents the free cash flow available for the
remuneration of own capital, to repay debt and to cover any financial investments and payments of
licenses and frequencies. In particular, the indicator highlights the change in adjusted net financial debt
without considering the impacts of payment of dividends, changes in equity, acquisitions/disposals of
equity investments, outlay for the purchase of licenses and frequencies, increases/decreases of finance
lease liabilities payable (new lease operations, renewals and/or extensions, cancellations/early
extinguishing of leases).
The Equity Free Cash Flow measure is calculated as follows:
Reduction/(Increase) in adjusted net financial debt from continuing operations
+/-
Impact for finance leases (new lease operations and/or renewals and/or extensions (-)/any terminations/early
extinguishing of leases (+))
-
Payment of TLC licenses and for the use of frequencies
+/-
Financial impact of acquisitions and/or disposals of investments
-
Dividend payment and Change in Equity
Equity Free Cash Flow
■
Capital expenditures (net of TLC licenses): this financial measure represents the capital expenditures
made net of investments for competence relating to TLC licenses for the use of frequencies.
■
Operating Free Cash Flow (OFCF) and Operating Free Cash Flow (net of licenses): these financial
measures represent the cash flow available to repay the debt (including lease payables) and cover any
financial investments and, in the case of OFCF, payments of licenses and frequencies.
Operating Free Cash Flow and Operating Free Cash Flow (net of licenses) are calculated as follows:
EBITDA
-
Capital expenditures on an accrual basis
+/-
Change in net operating working capital (Change in inventories, Change in trade receivables and other net
receivables, Change in trade payables, Change in payables for mobile telephone licenses/spectrum, Other
changes in operating receivables/payables, Change in employee benefits, Change in operating provisions and
other changes)
Operating Free Cash Flow
-
Payment of TLC licenses and for the use of frequencies
Operating Free Cash Flow (net of licenses)
Alternative performance measures after lease
Following the adoption of IFRS 16, the TIM Group presents the following additional alternative performance
measures:
■
EBITDA After Lease (“EBITDA-AL”), calculated by adjusting the Organic EBITDA, net of the non-recurring
items, from the amounts connected with the accounting treatment of the lease contracts;
■
Adjusted Net Financial Debt After Lease, calculated by excluding from the adjusted net financial debt the
net liabilities related to the accounting treatment of lease contracts. TIM believes that the Adjusted net
financial debt After Lease represents an indicator of the ability to meet its financial obligations;
■
Equity Free Cash Flow After Lease, calculated by excluding from the Equity Free Cash Flow the amounts
related to lease payments. In particular, this measure is calculated as follows:
+
Equity Free Cash Flow
-
Principal share of lease payments
This measure is a useful indicator of the ability to generate Free Cash Flow.
Report on Operations of the
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Alternative performance measures
98
Key operating
and
financial data
1,764
millions
of euros
EBITDA MARGIN
9,915
millions
of euros
NET FINANCIAL DEBT CARRYING AMOUNT
1,685
millions
of euros
9,080
millions
of euros
ADJUSTED NET FINANCIAL DEBT - AFTER LEASE
2,330
millions
of euros
EBITDA MARGIN
9,218
millions
of euros
EBITDA
REVENUES
1,037
millions
of euros
CAPITAL EXPENDITURES & LICENSES
12,951
numbers
HEADCOUNT AT YEAR END
EBITDA LIKE-FOR-LIKE
EBITDA AFTER LEASE LIKE-FOR-LIKE
REVIEW OF KEY OPERATING AND FINANCIAL
DATA - TIM S.P.A.
Main changes in the corporate structure
During 2024, the main corporate transactions were as follows:
■
on July 1, 2024, TIM S.p.A. transferred the Business Unit –consisting of the activities relating to the Primary
Network, the Wholesale business and the entire shareholding in the subsidiary Telenergia S.r.l. – to
FiberCop S.p.A., a company that already managed the activities relating to the secondary fiber and copper
network; concurrent with the transfer, TIM S.p.A. sold its entire stake in the share capital of FiberCop S.p.A.
to Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis Roberts & Co. L.P. (“KKR”)) and, together with
FiberCop S.p.A., entered into a Master Services Agreement regulating the terms and conditions of the
services provided between FiberCop S.p.A. and TIM S.p.A.. On that date, therefore, the economic and equity
effects of the transaction were recognized; The income statement figures of the Business Unit pertaining
to TIM S.p.A. up to the date of sale have been classified as Discontinued Operations in accordance with
IFRS 5.
For more information, please refer to the section "Disposal of NetCo" in the section "Key Operating and
Financial Data - TIM Group" of this Report.
During 2023, the main corporate transactions were as follows:
■
TIM Servizi Digitali S.p.A.: On August 4, 2023 TIM S.p.A. sold 100% of the share capital of the company TIM
Servizi Digitali S.p.A. to the company Nextaly Srl..
Operating Performance
(million euros)
2024
2023
% Change
% like-for-
like
(a)
(b)
(a - b)/b
Revenues
9,218
8,967
2.8
2.0
EBITDA
(1)
2,330
2,199
6.0
6.4
EBITDA Margin
(1)
25.3%
24.5%
0.8 pp
EBIT
(1)
662
544
21.7
EBIT Margin
(1)
7.2%
6.1%
1.1 pp
Profit (loss) for the year
(1,242)
(995)
24.8
Capital expenditures
1,037
1,080
(4.0)
31.12.2024
31.12.2023
Change Amount
(a)
(b)
(a-b)
Net financial debt carrying amount
(1)
10,180
21,664
(11,484)
Adjusted Net Financial Debt
(1)
9,915
21,149
(11,234)
Headcount at year end (number)
12,951
32,951
(20,000)
(1) For details, please refer to the "Alternative performance measures" chapter.
Complex contracts
As part of a process aiming to ensure the identification and definition of the initiatives for the evolution of the
internal control system for the management of corporate risks, in 2022, the TIM Group instituted a Technical
Committee to supervise complex contracts (the “Technical Committee").
The Technical Committee has defined:
■
the objective criteria on which basis to classify a contract as a “complex contract”;
■
the procedure for the assessment and authorization of complex contracts, which envisages the
involvement of multiple subjects and competences able to assess the different risk profiles (board decision-
making process);
■
an update to the policy governing the formalization process of contracts within the Group by providing for
a clear identification and formalization of the rationale underlying the decision-making process for
awarding complex contracts, as well as the related escalation mechanisms, thus strengthening the
process of identifying and reconstructing the sources, information elements and controls performed.
Report on operations of
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100
Starting from the 2021 financial year, some multi-year contracts for the offer of multimedia content and a
connectivity agreement have shown a negative overall margin throughout the entire contractual duration,
with the need to make provisions for the registration of a Risk Fund contractual for onerous contracts for the
residual duration periods of the agreements. The residual value of the Risk Provision and the forecasts of the
overall contractual margin are periodically reviewed, in order to confirm or update the initial estimates and the
residual amount of the Provision itself.
The utilization of the contractual risks provision for onerous contracts over the contractual term makes it
possible to offset the negative EBITDA component (referring both to business operating performance and the
commitments in terms of fees that TIM is contractually obliged to pay to counterparties) by recognizing a zero
(organic) operating margin over the duration of the contract.
At December 31, 2024, the provision for contractual risks for onerous contracts totaled 70 million euros, which
is sufficient to compensate the negative margins over the entire duration of the surviving contracts. It should
be noted that, during 2024, the contract was entered into with DAZN and the related risk provision (110 million
euros) was fully used.
Below are:
■
the amount used of the Provision for risks to cover the negative margin;
■
the amount of the total organic margins (organic EBITDA) without using the risk provision for onerous
contracts.
(million euros)
2024
2023
EBITDA
2,330
2,199
ORGANIC EBITDA (including use of the risk provision for onerous contracts)
2,427
2,832
- Use of the risk provision for onerous contracts to cover the negative margin
(112)
(98)
ORGANIC EBITDA (excluding use of the risk provision for onerous contracts)
2,315
2,734
The amount of 112 million euros is the negative margin, for which the provision was used.
From a financial viewpoint, the negative margin covered by the Risks Provision has an equal impact on the Net
Financial Position and cash flows.
With reference to the multi-year contracts, which in some cases require TIM to pay the counterparty prices by
way of guaranteed minimum, it should be recalled that the valuation of these contracts and the estimation of
the associated costs is subject to numerous uncertainties that include, amongst others, market dynamics,
rulings by the market regulatory authorities and the development of new technologies in support of the
service. These estimates are periodically revised on the basis of the final data to ensure that the forecast figure
remains within reasonably foreseeable ranges. Not all the factors mentioned are under the company’s control
hence they could have a significant impact on future forecasts regarding the performance of the contracts, the
estimated amount of (positive or negative) margins and the cash flows that are generated.
Revenues
2024 revenues came to 9,218 million euros (8,967 million euros in 2023), with an increase of 251 million euros or
+2.8%.
Like-for-like revenues are calculated as follows:
(milioni di euro)
2024
2023
Change
%
REVENUES
9,218
8,967
2.8
Non-recurring income/(expenses)
—
—
ORGANIC REVENUES - excluding non-recurring items
9,218
8,967
2.8
Impacts deriving from:
Master Service Agreement (MSA)
67
134
Other
—
—
Like-for-like ORGANIC REVENUES
9,285
9,101
2.0
“Like-for-like” service revenues amounted to 8,516 million euros (+194 million euros compared to 2023,
+2.3%), thanks to the growth in ICT and Multimedia revenues despite the impact of a competitive market on
the customer base.
“Like-for-like” revenues from Handsets and Bundles & Handsets, including the change in work in progress,
amounted to 769 million euros in 2024, down 10 million euros compared to 2023, mainly due to lower revenues
in the Enterprise segment.
Following the completion of the delayering operation, resulting in the sale of NetCo, the presentation of
revenues has been changed, so that the revenues shown below are divided between Consumer & SMB and
Enterprise, complete with the breakdown of the reference perimeter.
Report on Operations of
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■
Consumer & SMB. The reference perimeter is made up of the set of telephone and Internet services and
products managed and developed in Landline and Mobile for individuals and families (from public telephony,
from caring activities and administrative management of customers) and for customers of SMEs (Small and
Medium Enterprises), SOHO (Small Office Home Office) and other mobile operators (MVNOs);
(million euros)
2024
2023
Change %
Consumer & SMB revenues - like-for-like
5,621
5,623
—
Service revenues
5,087
5,117
(0.6)
Handset and Bundle & Handset revenues
534
506
5.5
Service revenues in the segment amounted to 5,087 million euros, down 30 million euros (-0.6%)
compared to 2023, mainly attributable to competitive dynamics and the contraction in revenues from
incoming traffic for the progressive reduction of interconnection tariffs.
Handset and Bundle & Handset revenues totaled 534 million euros, up 28 million euros compared to the
first half of 2023; the change is related to higher sales volumes of mobile terminals.
■
Enterprise. This segment comprises the connectivity services and products and the ICT solutions managed
and developed for Top, Public Sector and Large Account customers.
(million euros)
2024
2023
Change %
Enterprise revenues – like-for-like
3,265
3,065
6.5
Service revenues
3,031
2,790
8.6
Handset and Bundle & Handset revenues
234
275
(14.9)
Specifically, revenues from Enterprise services totaled 3,031 million euros, an increase of 241 million euros
(+8.6%) over 2023, due to growth in cloud and security services.
EBITDA
TIM S.p.A.’s EBITDA for FY2024 is 2,330 million euros (+131 million euros over FY2023, +6.0%).
Like-for-like EBITDA is calculated as follows:
(milioni di euro)
2024
2023
Change
%
EBITDA
2,330
2,199
6.0
Non-recurring expenses (income)
97
633
ORGANIC EBITDA excluding non-recurring items
2,427
2,832
(14.3)
Impacts deriving from:
New Master Service Agreement (MSA)
(902)
(1,814)
Reversal of previous MSA between TIM and FiberCop
341
699
Other
(17)
20
Like-for-like ORGANIC EBITDA
1,849
1,737
6.4
The following elements also affected EBITDA:
■
Other income
(million euros)
2024
2023
Change
Late payment fees charged for telephone services
19
23
(4)
Recovery of employee benefit expenses, purchases and
services rendered
34
21
13
Capital and operating grants
15
12
3
Damages, penalties and recoveries connected with litigation
2
21
(19)
Estimate revisions and other adjustments
96
40
56
Income for special training activities
1
2
(1)
Services related to the MSA in place with FiberCop S.p.A.
42
—
42
Other
24
11
13
Total
233
130
103
Other income increased by 103 million euros, mainly due to the income (42 million euros) from the MSA
entered into with FiberCop S.pA. during the year and the increase of 56 million in the estimate revisions and
other adjustments, mainly relating to the repayment of part of the penalty pertaining to the A514 case, as per
the Council of State's ruling of November 13, 2024.
Report on Operations of
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■
Acquisition of goods and services
(million euros)
2024
2023
Change
Acquisition of goods
707
724
(17)
Revenues due to other TLC operators and costs for
telecommunications network access services
524
552
(28)
Commercial and advertising costs
1,642
1,474
168
Professional and consulting services
85
100
(15)
Power, maintenance and outsourced services
727
516
211
Lease and rental costs
759
626
133
Other
1,691
1,338
353
Total acquisition of goods and services
6,135
5,330
805
% of Revenues
66.6
59.4
7.2 pp
Acquisition of goods and services shows an increase of 805 million euros, mainly due to higher energy and
maintenance costs (+200 million euros) and higher other costs (+353 million euros), mainly attributable to
higher network access charges.
The item includes a non-recurring component amounting to 24 million euros, mainly relating to consultancy
and professional services connected to corporate transactions and the management of regulatory disputes.
■
Employee benefits expenses
(million euros)
2024
2023
Change
Ordinary employee expenses and costs
826
886
(60)
Restructuring expenses and allocations to employee and other
provisions
84
466
(382)
Total employee benefits expenses
910
1,352
(442)
Employee benefits expenses were reduced by 442 million euros compared to 2023; The main factors that
drove this change were:
•
decrease of 382 million euros in corporate restructuring and other expenses; as of December 31, 2024,
84 million euros in charges were incurred, mainly relating to wage subsidies under the Solidarity
Contract and individual redundancy plans, as provided for by the union agreement signed by the
Company on April 12, 2024. In 2023, charges totaling 466million euros were incurred mainly in relation
to the exits of non-executive personnel – as provided for in application of Article 4 of Law no. 92 of
June 28, 2012, in relation to in the agreement signed on March 21, 2023 by the Company with the trade
unions – and in relation to the top-up of provisions for charges resulting from the agreements signed
by the Company in 2022;
•
the decrease of 60 million euros in ordinary employee expenses, mainly due to the savings resulting
from the reduction of the average salaried workforce by -1,783 units on average, partially offset by the
lower impact caused by the reduction in hours under the “Solidarity contract” signed on April 12, 2024
as compared to the prior Expansion agreement signed in 2022 and terminated on February 28, 2024
(+847 average units compared to 2023).
The headcount as of December 31, 2024 was 12,951 (32,951 as of December 31, 2023), a decrease of 20,000,
mainly due to the spin-off of NetCo.
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■
Other operating expenses
(million euros)
2024
2023
Change
Write-downs and expenses in connection with credit
management
92
104
(12)
Provision charges
36
56
(20)
TLC operating fees and charges
19
21
(2)
Indirect duties and taxes
28
25
3
Penalties, settlement compensation and administrative fines
9
24
(15)
Subscription dues and fees, donations, scholarships and
traineeships
6
6
—
Sundry expenses
44
131
(87)
Total
234
367
(133)
Other operating expenses in 2024 decreased by 133 million, mainly due to lower miscellaneous expenses due
to regulatory penalties present in 2023.
The item includes a non-recurring component of 44 million euros (132 in 2023), relating to adjustments in
remuneration costs for previous years and the provision for legal disputes.
Depreciation, amortization and capital expenditures
Depreciation and amortization in 2024 came to 1,647 million euros (1,638 million euros in 2023) and are as
follows:
(million euros)
2024
2023
Change
Amortization of intangible assets with a finite useful life
961
972
(11)
Depreciation of tangible assets
494
521
(27)
Amortization of rights of use assets
192
145
47
Total
1,647
1,638
9
The main aspects are listed below:
■
amortization of intangible assets amounted to 961 million euros, down by 11 million compared to 2023,
mainly as a result of lower amortization of software application developments and television broadcasting
rights;
■
the depreciation of tangible assets owned is equal to 494 million euros and shows a decrease of 27 million
euros compared to 2023, attributable to the dynamics of investments and exercisability. Lower
depreciation essentially refers to Plant and equipment (-25 million euros) and Other Assets (-2 million
euros);
■
amortization of rights of use is 192 million euros and increases by 47 million euros compared to 2023,
essentially as a result of the recognition, as part of the extraordinary transaction as part of consideration,
of rights of use (fair value) on B2B connections (755 million euros) with varying durations between 7 and 20
years.
Capital expenditures totaled 1,037 million euros (1,080 million euros in 2023), signaling a reduction of 43
million euros. They are so broken down as follows:
(million euros)
2024
2023
Change
Investments in intangible assets with a finite useful life
511
546
(35)
Investments in tangible assets
476
527
(51)
Investments in rights of use assets
50
7
43
Total
1,037
1,080
(43)
Investments in intangible assets decreased by 35 million euros, mainly as a result of fewer acquisitions of
software licenses and lower software platform development activities.
Investments in tangible assets showed a decrease of 51 million euros, due to lower investment in Plant and
equipment (-102 million euros) partially offset by higher investment in Construction in progress (+34 million
euros) and Other Assets (+17 million euros, mainly related to management hardware systems).
Report on Operations of
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Investments in rights of use assets recorded an increase of 43 million euros, essentially related to the
acquisition of transmission capacity in IRUs (backhauling and other rights of use under the MSA with Fibercop
S.p.A.).
Gains (losses) on disposals of non-current assets
The item was negative for 7 million euros in 2024 (positive for 17 million euros in 2023); in particular we note:
■
capital losses of 11 million euros, mainly resulting from the disposal of Base Radio Stations, the closing of
leases and the impacts resulting from the decommissioning and asset modernization project;
■
capital gains of 4 million euros, mainly referring to the sale to Inwit S.p.A. of the business unit represented
by communication equipment installed in 51 tunnels.
Impairment reversals (losses) on non-current assets
The item was negative by 14 million euros in 2024 (zero balance in 2023) due to the write-down of the residual
value of certain network asset components related to work in progress ("plant inventory").
In preparing the Financial Statements for 2024, the Company carried out an impairment test on the goodwill.
The outcomes of that testing, carried out in accordance with the specific procedure adopted by the Group,
confirmed the amounts of Goodwill allocated to the Group’s domestic business. Further details are provided in
the Note "Goodwill" to the Separate Financial Statements as at December 31, 2024 of TIM S.p.A.
EBIT
TIM S.p.A. EBIT for 2024 came to 662 million euros (544 million euros in 2023).
Income (expenses) from investments
The item was negative for 270 million euros in 2024 (positive for 911 million euros in 2023):
(million euros)
2024
2023
Change
Dividends
15
1,087
(1,072)
Other income and gains on disposals of investments
26
—
26
Other income from investments
—
—
—
Capital losses and impairment losses on financial assets
(311)
(176)
(135)
Sundry expenses from investments
—
—
—
Total
(270)
911
(1,181)
Income/(expenses) from investments, showing an expense of 270 million euros (income of 911 million euros in
2023), mainly reflects the write-down of the equity investment in Telecom Italia Sparkle S.p.A. after the
acceptance of the binding offer for the sale of the entire equity investment (100%), which entailed the full
recognition in TIM S.p.A.’s 2024 financial statements of the loss for the year 2024 reported by the Telecom
Italia Sparkle group (70 million euros) and the subsequent confirmation of the recoverability of the value of the
equity investment based on the offer, with an additional write-down of 230 million euros. In 2023, investment
income included dividends received from the subsidiary Telecom Italia Finance S.A. in the amount of 988
million euros.
Finance income/(expenses), net
Finance income (expenses) showed a net expense of 937 million euros (negative for 1,069 million euros in
2023). The reduction is essentially attributable to the dynamics of interest rates.
The item consists of:
(million euros)
2024
2023
Change
Finance income
1,003
997
6
Finance expenses
(1,940)
(2,066)
126
Total net finance income (expenses)
(937)
(1,069)
132
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105
Income tax expense
In the 2024 financial statements, no deferred tax assets were recognized for tax losses for the year and
previous years, in consideration of the assessment regarding the temporal distribution of the recoverability of
TIM S.p.A.'s deferred tax assets.
The tax amount of 31 million euros essentially represents the reversal to the income statement of deferred tax
assets mainly related to the use of provisions for risks and does not involve a financial outlay.
In 2023, the Tax item mainly reflected the net positive balance of the tax consolidation benefit only partially
offset by the deferred tax charge.
Further details are provided in the Note “Income tax expense (current and deferred)” of the Separate Financial
Statements at December 31, 2024 of TIM S.p.A.
Result of Discontinued operations / Non current assets held for sale
The result related to “Discontinued operations/Non-current assets held for sale” was negative 666 million
euros; specifically, it includes a gain of 141 million euros, which is net of incidental costs, recognized in the
second half of 2024 following the completion of the FiberCop sale.
Profit (loss) for the year
The loss for the year 2024 was 1,242 million euros; in detail:
■
the result for the second half of 2024 was a loss of 419 million euros;
■
the result for the first half of 2024 was a loss of 823 million euros, due also to the loss from the business
included in Discontinued Operations, which was sold on July 1, 2024.
Also, please note that the Master Services Agreement governing the relationship between TIM S.p.A. and NetCo
became effective as of July 1, 2024.
For further details, please refer to the Note "Discontinued Operations/Non-current Assets Held for Sale" in the
Separate Financial Statements of TIM S.p.A. as of December 31, 2024.
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Financial Position and Cash Flows Performance
Financial position structure
(million euros)
12/31/2024
12/31/2023
Change
Assets
Non-current assets
26,883
43,470
(16,587)
Goodwill
8,814
12,064
(3,250)
Intangible assets with a finite useful life
3,957
4,578
(621)
Tangible assets
1,721
6,561
(4,840)
Rights of use assets
1,513
3,271
(1,758)
Other non-current assets
10,579
16,590
(6,011)
Deferred tax assets
299
406
(107)
Current assets
4,627
6,499
(1,872)
Inventories, trade and miscellaneous receivables and other
current assets
3,287
4,759
(1,472)
Current income tax receivables
48
42
6
Current financial assets
1,292
1,698
(406)
31,510
49,969
(18,459)
Liabilities
Equity
12,103
13,156
(1,053)
Non-current liabilities
9,070
22,578
(13,508)
Current liabilities
10,337
14,235
(3,898)
31,510
49,969
(18,459)
Non-current assets
■
Goodwill: decreased by 3,250 million euros compared to December 31, 2023 as a result of the allocation of
the relevant portion of goodwill to the NetCo business unit, contributed to FiberCop S.p.A. on July 1, 2024;
Please refer to the Note "Goodwill" in the separate financial statements as of December 31, 2024 of TIM
S.p.A. for more details.
■
Intangible assets with a finite useful life: reduced by 621 million euros, from 4,578 million euros at the end
of 2023 to 3,957 million euros at December 31, 2024, as the balance between the following items:
•
CapEx (+511 million euros);
•
amortization charge for the year (-961 million euros);
•
other movements totaling -171 million euros, including the effects of the NetCo transaction and
disposals, reclassifications and other changes.
■
Tangible assets: decreased by 4,840 million euros, representing the sum of the following:
•
CapEx (+476 million euros);
•
amortization charge for the year (-494 million euros);
•
other movements totaling -4,822 million euros, including the effects of the NetCo transaction and
disposals, reclassifications and other changes.
■
Rights of use assets (mainly relating to real estate leases, network connectivity and telecommunications
infrastructure, etc.): decreased by 1,758 million euros, representing the sum of the following:
•
investments and increases in lease contracts (+249 million euros);
•
amortization charge for the year (-192 million euros);
•
other movements totaling -1,815 million euros, including the effects of the NetCo transaction and
disposals, reclassifications and other changes.
■
Deferred tax assets: decreased by 107 million euros compared to December 31, 2023.
Report on Operations of
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107
Equity
Equity amounted to 12,103 million euros, down by 1,053 million euros compared to December 31, 2023 (13,156
million euros). The changes in equity over 2024 and 2023 are detailed in the following table:
(million euros)
12/31/2024
12/31/2023
At the beginning of the year
13,156
14,252
Profit (loss) for the year
(1,242)
(995)
Dividends approved
—
—
Equity instruments and other changes
1
6
Movements in the reserve for financial assets measured at fair value through other
comprehensive income and derivative hedging instruments
175
(99)
Movements in the reserve for remeasurements of employee defined benefit plans (IAS
19)
13
(8)
At the end of the year
12,103
13,156
Cash flows
Change in adjusted net financial debt
(million euros)
2024
2023
Change
EBITDA
2,330
2,199
131
Capital expenditures on an accrual basis
(1,037)
(1,080)
43
Change in net operating working capital:
14
405
(391)
Change in inventories
(12)
16
(28)
Change in trade receivables and other net receivables
219
12
207
Change in trade payables
116
108
8
Other changes in operating receivables/payables
(309)
269
(578)
Change in employee benefits
(10)
(262)
252
Advance received on NRRP contributions
—
758
(758)
Change in operating provisions and Other changes
(99)
(132)
33
Net operating free cash flow
1,198
1,888
(690)
% of Revenues
13.0
21.1
(8.1)
Sale of investments and other disposals flow
271
(1)
272
Share capital increases/reimbursements
—
—
—
Financial investments
(53)
(33)
(20)
Dividends flow
15
1,087
(1,072)
Increases in lease contracts
(199)
(111)
(88)
Financial expenses, income taxes and other net non-operating
requirements flow
(664)
(895)
231
Impact on NFD resulting from the NetCo transaction
11,644
—
11,644
Reduction/(Increase) in adjusted net financial debt from
continuing operations
12,212
1,935
10,277
Reduction/(Increase) in adjusted net financial debt from
Discontinued operations / Non-current assets held for sale
(978)
(1,375)
397
Reduction/(Increase) in adjusted net financial debt
11,234
560
10,674
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Equity Free Cash Flow
(million euros)
2024
2023
Change
Reduction/(Increase) in adjusted net financial debt
11,234
560
10,674
Impact for finance leases (new lease operations and/or
renewals and/or extensions (-)/any terminations/early
extinguishing of leases (+))
85
471
(386)
Payment of TLC licenses and for the use of frequencies
—
—
—
Financial impact of acquisitions and/or disposals of
investments
(11,859)
33
(11,892)
Dividend payment and Change in Equity
—
—
—
Equity Free Cash Flow
(540)
1,064
(1,604)
The decrease in netoperating free cash flow (calculated by applying IFRS 16) in 2024 compared to 2023 (down
690 million euros) is mainly attributable to the fact that the 2023 figure included the collection of advances on
NRRP grants (758 million euros).
In addition to what has already been described with reference to EBITDA, the following flows particularly
impacted the change in net financial debt during the year.
Capital expenditures
CapEx totaled 1,037 million euros (1,080 million euros in 2023), with a decrease of 43 million euros, determined
by lower investments in intangible assets (35 million euros) and in tangible assets (51 million euros), only
partially offset by greater investments in rights of use assets (43 million euros).
Cash flows from sales of investments and other disposals
It is positive by 271 million euros (negative by 1 million euros in 2023) and refers mainly to the sale of
investments in the associates Daphne 3 S.p.A. (250 million euros), Italtel S.p.A. (10 million euros) and Nordcom
S.p.A. (8 million euros).
Financial investments flow
Amounts to 53 million euros and refers to capital increases carried out during the year in favor of the
subsidiaries Olivetti S.p.A. Società Benefit (30 million euros) and TI Latam Participações e Gestão
Administrativa Ltda (16 million euros) and in favor of the associated company Polo Strategico Nazionale (7
million euros). In 2023, the item amounted to 33 million euros and mainly referred to payments into
participation accounts in favor of the associated companies Polo Strategico Nazionale (19 million euros) and
TIMFin (10 million euros).
Dividends flow
Amounts to 15 million euros and shows a decrease of 1,072 million euros compared to fiscal year 2023, mainly
due to the fact that last year dividends had been collected from subsidiaries Telecom Italia Finance S.A. (988
million euros) and FiberCop S.p.A. (84 million euros).
Increases in lease contracts
This item amounted to 199 million euros (111 million euros in 2023). Increases in lease contracts include the
higher value of user rights entered following new lease contracts payables, increase of lease payments and
renegotiations of existing contracts.
Financial expenses, income taxes and other net non-operating
requirements flow
Negative 664 million euros (negative 895 million euros in 2023) and mainly includes the payment of net
finance expenses of 1,208 million euros (158 million euros in 2023), partially offset by the change in non-
operating payables and receivables.
Impact on NFD resulting from the NetCo transaction
The item is positive at 11,644 million euros and includes the improvement in adjusted net financial debt related
to the NetCo transaction. More details can be found in the "Net Financial Debt" section below.
Sales of receivables to factoring companies
It should be noted that sales without recourse of trade receivables to factoring companies completed during
2024 resulted in a positive effect on the adjusted net financial debt at December 31, 2024 amounting to 1,129
million euros (1,082 million euros at December 31, 2023).
Report on Operations of
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Review of key operating and financial data of
TIM S.p.A.
109
Net financial debt
Net financial debt is composed as follows:
(million euros)
12/31/2024
12/31/2023
Change
(a)
(b)
(a-b)
Non-current financial liabilities
Bonds
4,123
9,445
(5,322)
Amounts due to banks, other financial payables and liabilities
3,242
8,649
(5,407)
Non-current financial liabilities for lease contracts
644
2,710
(2,066)
8,009
20,804
(12,795)
Current financial liabilities (1)
Bonds
2,127
3,007
(880)
Amounts due to banks, other financial payables and liabilities
2,698
2,976
(278)
Current financial liabilities for lease contracts
231
467
(236)
5,056
6,450
(1,394)
Total Gross financial debt
13,065
27,254
(14,189)
Non-current financial assets
Non-current financial receivables arising from lease contracts
(14)
(6)
(8)
Financial receivables and other non-current financial assets
(1,579)
(3,886)
2,307
(1,593)
(3,892)
2,299
Current financial assets
Securities other than investments
—
—
—
Current financial receivables arising from lease contracts
(26)
(68)
42
Financial receivables and other current financial assets
(446)
(1,032)
586
Cash and cash equivalents
(820)
(598)
(222)
(1,292)
(1,698)
406
Total financial assets
(2,885)
(5,590)
2,705
Net financial debt carrying amount
10,180
21,664
(11,484)
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(265)
(515)
250
Adjusted Net Financial Debt
9,915
21,149
(11,234)
Breakdown as follows:
Total adjusted gross financial debt
12,702
26,403
(13,701)
Total adjusted financial assets
(2,787)
(5,254)
2,467
(1) of which current portion of medium/long-term debt:
Bonds
2,127
3,007
(880)
Amounts due to banks, other financial payables and liabilities
1,150
1,180
(30)
Finance lease liabilities
205
433
(228)
The non-current portion of gross financial debt amounted to 8,009 million euros (20,804 million euros at the
end of 2023) and represented 61% of total gross financial debt.
In line with the Group's objectives in terms of debt composition and in accordance with the Guidelines adopted
for the "Management and control of financial risk", TIM S.p.A., in securing both third-party and intercompany
loans, uses IRS and CCIRS derivative financial instruments to hedge its liabilities.
Derivative financial instruments are designated as fair value hedges for managing exchange rate risk on
financial instruments denominated in currencies other than euro and for managing interest rate risk on fixed-
rate loans. Derivative financial instruments are designated as cash flow hedges when the objective is to fix the
exchange rate and interest rate of future variable contractual flows.
Report on Operations of
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Review of key operating and financial data of
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110
Adjusted net financial debt (including IFRS 16 net debt) amounted to 9,915 million euros at December 31,
2024, a decrease of 11,234 million euros compared to December 31, 2023 (21,149 million euros). This reduction
is mainly due to the NetCo divestment deal finalized on July 1, 2024, which resulted in a deleverage of 11.6
billion euros (including: 3.3 billion euros bond transfer to the buyer, 2.2 billion euros settlement of intercompany
positions with the Luxembourg companies, 4.2 billion euros collection of closing consideration, and 2.1 billion
euros deconsolidation of net financial debt for lease contracts recorded in application of IFRS 16).
For a better understanding of the information, the table below shows the various ways by which the Net
Financial Debt can be shown:
(million euros)
12/31/2024
12/31/2023
Change
Net financial debt carrying amount
10,180
21,664
(11,484)
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(265)
(515)
250
Adjusted Net Financial Debt
9,915
21,149
(11,234)
Leases
(835)
(3,103)
2,268
Adjusted Net Financial Debt - After Lease
9,080
18,046
(8,966)
Net financial debt carrying amount amounted to 10,180 million euros at December 31, 2024, a decrease of
11,484 million euros compared to December 31, 2023 (21,664 million euros). Reversal of fair value
measurement of derivatives and related financial liabilities/assets recorded a positive change of 250 million
euros year on year due to the trend in the interest rate markets and the exit from some hedging derivatives
following the transfer of the underlying bonds to Optics BidCo S.A; this valuation adjusts the booked Net
Financial Debt with no monetary effect.
Adjusted Net Financial Debt - After Lease (net of the impact of all leases) at December 31, 2024 amounted to
9,080 million euros, down by 8,966 million euros compared to December 31, 2023 (18,046 million euros).
Gross financial debt
Bonds
Bonds at December 31, 2024 totaled 6,250 million euros (12,452 million euros at December 31, 2023). Their
nominal repayment amount was 6,109 million euros, a decrease of 6,068 million euros compared to December
31, 2023 (12,177 million euros).
The change in bonds during 2024 was as follows:
Repayments
(millions in original currency)
Currency
Amount
Repayment date
Telecom Italia S.p.A. 450 million euros 3.625%
Euro
450
1/19/2024
Telecom Italia S.p.A. 950 million euros 4.000%
Euro
950
4/11/2024
Telecom Italia S.p.A. 1,500 million USD 5.303%
USD
1,500
5/30/2024
In April 2024, TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A made an Offer to Exchange
Existing EUR and USD denominated Notes for New Notes to Bondholders in preparation for the Netco
transaction. Exchange operations concluded in May 2024.
The new bonds have substantially the same terms as the corresponding series of original bonds, including in
terms of their maturity, interest rate, interest payment dates and restrictive covenants.
The table below summarizes the notes still with TIM S.p.A. and those subsequently transferred to Optics on
July 1, 2024:
Currency
Nominal value of
original notes
Coupon
Maturity date
TIM S.p.A. original
notes (nominal value)
New Notes
transferred to Optics
(nominal value)
Bonds issued by TIM S.p.A.
Euro
750,000,000
2.875%
1/28/26
375,000,000
375,000,000
Euro
1,000,000,000
3.625%
5/25/26
677,997,000
322,003,000
Euro
1,250,000,000
2.375%
10/12/27
742,285,000
507,715,000
Euro
1,250,000,000
6.875%
2/15/28
625,000,000
625,000,000
Euro
1,500,000,000
7.875%
7/31/28
750,000,000
750,000,000
Euro
1,000,000,000
1.625%
1/18/29
499,180,000
500,820,000
Euro
670,000,000
5.250%
3/17/55
440,000,000
230,000,000
Revolving Credit Facility and Term Loan
The following table shows committed credit lines(*) available at December 31, 2024:
Report on Operations of
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Review of key operating and financial data of
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111
(billions of euros)
12/31/2024
12/31/2023
Agreed
Drawn down
Agreed
Drawn down
Sustainability-linked RCF – May 2026
4.0
—
4.0
—
Total
4.0
—
4.0
—
(*) In accordance with the contract signed, the Banks have committed to make the funds available on demand (with at least 3 days’ notice). As this
is a “Committed” line, the banks have no mechanisms in place not to honor the request for funds made by the Company, without prejudice to the
market standard early mandatory cancellation clauses (Natural contract expiry, Change in control, Borrower illegality, Events of default each as
defined in the contract).
Maturities of financial liabilities
The average maturity of non-current financial liabilities (including the current portion of medium/long-term
financial liabilities due within 12 months) was 5.51 years.
Details of the maturities of financial liabilities in terms of expected nominal repayment amounts, as
contractually agreed, are provided in the Note “Non-current and current financial liabilities” of the Separate
Financial Statements of TIM S.p.A. at December 31, 2024.
Financial assets and liquidity margin
Financial assets totaled 2,885 million euros (5,590 million euros at December 31, 2023), of which 1,429 million
euros relating to financial receivables from Group companies.
Of that total, 1,292 million euros (1,698 million euros at December 31, 2023) was classified as current financial
assets.
The available liquidity margin of TIM S.p.A. amounted to 4,820 million euros, equal to the sum of:
■
“Cash and cash equivalents” and “Current securities other than investments” for a total of 820 million
euros (598 million euros at December 31, 2023);
■
Sustainability-linked Revolving Credit Facility amounting to 4,000 million euros, totally available.
This margin allows for the coverage of debt repayment maturities expected in the next 12 months.
Specifically:
Cash and cash equivalents amounted to 820 million euros (598 million euros at December 31, 2023). The
different technical forms of investing available cash can be analyzed as follows:
■
Maturities: investments have a maximum maturity of three months;
■
Counterparty risk: investments are made with leading banking and financial institutions with high-credit-
quality;
■
Country risk: deposits have been made mainly in major European financial markets.
Report on Operations of
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Review of key operating and financial data of
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112
TABLES OF DETAIL – TIM S.p.A.
Separate Income Statements
(million euros)
2024
2023
Changes
(a-b)
(a)
(b)
absolute
%
Revenues
9,218
8,967
251
2.8
Other income
233
130
103
79.2
Total operating revenues and other income
9,451
9,097
354
3.9
Acquisition of goods and services
(6,135)
(5,330)
(805)
(15.1)
Employee benefits expenses
(910)
(1,352)
442
32.7
Other operating expenses
(234)
(367)
133
36.2
Change in inventories
14
(12)
26
—
Internally generated assets
144
163
(19)
(11.7)
Operating profit (loss) before depreciation and
amortization, capital gains (losses) and impairment
reversals (losses) on non-current assets (EBITDA)
2,330
2,199
131
6.0
Depreciation and amortization
(1,647)
(1,638)
(9)
(0.5)
Gains (losses) on disposals of non-current assets
(7)
(17)
10
58.8
Impairment reversals (losses) on non-current assets
(14)
—
(14)
—
Operating profit (loss) (EBIT)
662
544
118
21.7
Income (expenses) from investments
(270)
911
(1,181)
—
Finance income
1,003
997
6
0.6
Finance expenses
(1,940)
(2,066)
126
6.1
Profit (loss) before tax from continuing operations
(545)
386
(931)
—
Income tax expense
(31)
46
(77)
—
Profit (loss) from continuing operations
(576)
432
(1,008)
—
Profit (loss) from Discontinued operations / Non current
assets held for sale
(666)
(1,427)
761
53.3
Profit (loss) for the year
(1,242)
(995)
(247)
(24.8)
Report on Operations of
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Tables of detail – TIM S.p.A.
113
Statements of Comprehensive Income
In accordance with IAS 1 (Presentation of Financial Statements), the following Statements of Comprehensive
Income include the Profit (loss) for the year as shown in the Separate Income Statements and all non-owner
changes in equity.
(million euros)
2024
2023
Profit (loss) for the year
(a)
(1,242)
(995)
Other components of the Statements of Comprehensive Income
Other components that will not be reclassified subsequently to Separate
Income Statements
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
9
3
Income tax effect
—
—
(b)
9
3
Remeasurements of employee defined benefit plans (IAS 19):
Actuarial gains (losses)
13
(8)
Income tax effect
—
—
(c)
13
(8)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Income tax effect
—
—
(d)
—
—
Total other components that will not be reclassified subsequently to
Separate Income Statements
(e=b+c+d)
22
(5)
Other components that will be reclassified subsequently to Separate
Income Statements
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
1
4
Loss (profit) transferred to the Separate Income Statements
—
—
Income tax effect
—
(1)
(f)
1
3
Hedging instruments:
Profit (loss) from fair value adjustments
253
(237)
Loss (profit) transferred to the Separate Income Statements
(36)
100
Income tax effect
(52)
33
(g)
165
(104)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Loss (profit) transferred to the Separate Income Statements
—
—
Income tax effect
—
—
(h)
—
—
Total other components that will be reclassified subsequently to
Separate Income Statements
(i= f+g+h)
166
(101)
Total other components of the Statements of Comprehensive Income
(k= e+i)
188
(106)
Total comprehensive income (loss) for the year
(a+k)
(1,054)
(1,101)
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114
Statements of Financial Position
(million euros)
12/31/2024
12/31/2023
Variations
(a)
(b)
(a-b)
Assets
Non-current assets
Intangible assets
Goodwill
8,814
12,064
(3,250)
Intangible assets with a finite useful life
3,957
4,578
(621)
12,771
16,642
(3,871)
Tangible assets
Property, plant and equipment owned
1,721
6,561
(4,840)
Rights of use assets
1,513
3,271
(1,758)
Other non-current assets
Investments
7,434
10,903
(3,469)
Non-current financial receivables arising from lease
contracts
14
6
8
Other non-current financial assets
1,579
3,886
(2,307)
Miscellaneous receivables and other non-current assets
1,552
1,795
(243)
Deferred tax assets
299
406
(107)
10,878
16,996
(6,118)
Total Non-current assets
(a)
26,883
43,470
(16,587)
Current assets
Inventories
148
198
(50)
Trade and miscellaneous receivables and other current
assets
3,139
4,561
(1,422)
Current income tax receivables
48
42
6
Current financial assets
Current financial receivables arising from lease contracts
26
68
(42)
Securities other than investments, other financial
receivables and other current financial assets
446
1,032
(586)
Cash and cash equivalents
820
598
222
1,292
1,698
(406)
Total Current assets
(b)
4,627
6,499
(1,872)
Total Assets
(a+b)
31,510
49,969
(18,459)
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115
(million euros)
12/31/2024
12/31/2023
Variations
(a)
(b)
(a-b)
Equity and liabilities
Equity
Share capital issued
11,677
11,677
—
less: Treasury shares
(53)
(57)
4
Share capital
11,624
11,620
4
Additional paid-in capital
—
575
(575)
Other reserves and retained earnings (accumulated losses),
including profit (loss) for the year
479
961
(482)
Total Equity
(c)
12,103
13,156
(1,053)
Non-current liabilities
Non-current financial liabilities for financing contracts and
others
7,365
18,094
(10,729)
Non-current financial liabilities for lease contracts
644
2,710
(2,066)
Employee benefits
163
472
(309)
Deferred tax liabilities
—
—
—
Provisions
199
254
(55)
Miscellaneous payables and other non-current liabilities
699
1,048
(349)
Total Non-current liabilities
(d)
9,070
22,578
(13,508)
Current liabilities
Current financial liabilities for financing contracts and
others
4,825
5,983
(1,158)
Current financial liabilities for lease contracts
231
467
(236)
Trade and miscellaneous payables and other current
liabilities
5,281
7,785
(2,504)
Current income tax payables
—
—
—
Total Current Liabilities
(e)
10,337
14,235
(3,898)
Total Liabilities
(f=d+e)
19,407
36,813
(17,406)
Total Equity and Liabilities
(c+f)
31,510
49,969
(18,459)
Report on Operations of
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Tables of detail – TIM S.p.A.
116
Statements of Cash Flows
(million euros)
2024
2023
Cash flows from operating activities:
Profit (loss) for the year from continuing operations
(576)
432
Adjustments for:
Depreciation and amortization
1,647
1,638
Impairment losses (reversals) on non-current assets including
investments
326
161
Net change in deferred tax assets and liabilities
32
90
Losses (gains) realized on disposals of non-current assets (including
investments)
(19)
31
Change in employee benefits
(10)
(262)
Change in inventories
(12)
16
Change in trade receivables and other net receivables
219
12
Change in trade payables
—
60
Net change in income tax receivables/payables
(5)
(8)
Net change in miscellaneous receivables/payables and other assets/
liabilities
(193)
161
Cash flows from (used in) operating activities
(a)
1,409
2,331
Cash flows from investing activities:
Purchases of intangible, tangible and rights of use assets on a cash
basis
(920)
(1,031)
Contributions for plants received
7
759
Acquisition of control of companies or other businesses, net of cash
acquired
—
—
Proceeds from sale that result in a loss of control of subsidiaries or
other businesses, net of cash disposed of
4,169
—
Acquisitions/disposals of other investments
(53)
(33)
Change in financial receivables and other financial assets (excluding
hedging and non-hedging derivatives under financial assets)
2,504
(1,330)
Proceeds from sale/repayments of intangible, tangible, rights of use
assets and other non-current assets
271
(1)
Cash flows from (used in) investing activities
(b)
5,978
(1,636)
Cash flows from financing activities:
Change in current financial liabilities and other
(246)
465
Proceeds from non-current financial liabilities (including current
portion)
2,000
3,110
Repayments of non-current financial liabilities (including current
portion)
(7,945)
(3,734)
Changes in hedging and non-hedging derivatives
(85)
91
Share capital proceeds/reimbursements
—
—
Dividends paid
—
—
Changes in ownership interests in subsidiaries
—
—
Cash flows from (used in) financing activities
(c)
(6,276)
(68)
Cash flows from (used in) discontinued operations/non-current assets
held for sale
(d)
(1,174)
(1,251)
Aggregate cash flows
(e=a+b+c+d)
(63)
(624)
Net cash and cash equivalents at beginning of the year
(f)
(265)
359
Net cash and cash equivalents at end of the year
(g=e+f)
(328)
(265)
Report on Operations of
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Tables of detail – TIM S.p.A.
117
Purchases of intangible, tangible and rights of use assets
(million euros)
2024
2023
Purchase of intangible assets
(511)
(546)
Purchase of tangible assets
(476)
(527)
Purchase of right of use assets
(248)
(117)
Total purchases of intangible, tangible and rights of use assets on an
accrual basis
(1,235)
(1,190)
Change in payables arising from purchase of intangible, tangible and
rights of use assets
315
159
Total purchases of intangible, tangible and rights of use assets on a
cash basis
(920)
(1,031)
Additional Cash Flow Information
(million euros)
2024
2023
Income taxes (paid) received
143
104
Interest expense paid
(1,597)
(1,674)
Interest income received
645
749
Dividends received
15
1,087
Analysis of Net Cash and Cash Equivalents
(million euros)
2024
2023
Net cash and cash equivalents at beginning of the year:
Cash and cash equivalents
598
1,375
Bank overdrafts repayable on demand
(863)
(1,016)
(265)
359
Net cash and cash equivalents at end of the year:
Cash and cash equivalents
820
598
Bank overdrafts repayable on demand
(1,148)
(863)
(328)
(265)
The additional disclosures required by IAS 7 are provided in the Note “Net financial debt” to these Separate
Financial Statements of TIM S.p.A. as of December 31, 2024.
Report on Operations of
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Tables of detail – TIM S.p.A.
118
AFTER LEASE INDICATORS - TIM S.p.A.
The Company, in addition to the conventional financial performance measures established by the IFRS, uses
certain alternative performance measures in order to present a better understanding of the trend of operations
and financial condition. In particular, following the adoption of IFRS 16, TIM presents the following additional
alternative performance measures:
TIM S.p.A. LIKE-FOR-LIKE EBITDA AFTER LEASE
(million euros)
2024
2023
Changes
absolute
%
Like-for-like ORGANIC EBITDA
1,849
1,737
112
6.4
Lease payments
(164)
(153)
(11)
7.2
Like-for-like EBITDA After Lease (EBITDA-AL)
1,685
1,584
101
6.4
ADJUSTED NET FINANCIAL DEBT AFTER LEASE TIM S.p.A.
(million euros)
12/31/2024
12/31/2023
Change
Adjusted Net Financial Debt
9,915
21,149
(11,234)
Leases
(835)
(3,103)
2,268
Adjusted Net Financial Debt - After Lease
9,080
18,046
(8,966)
EQUITY FREE CASH FLOW AFTER LEASE TIM S.p.A.
(million euros)
2024
2023
Change
EQUITY FREE CASH FLOW
(540)
1,064
(1,604)
Lease contract payments (principal share)
(263)
(375)
112
EQUITY FREE CASH FLOW AFTER LEASE
(803)
689
(1,492)
Report on operations of
TIM S.p.A.
After Lease Indicators - TIM S.p.A.
119
RECONCILIATION OF CONSOLIDATED EQUITY
(million euros)
Profit (loss) for the year
Equity at 12/31
2024
2023
2024
2023
Equity and Profit (Loss) for the year of TIM S.p.A.
(1,242)
(995)
12,103
13,156
Equity and Profit (Loss) for the year of consolidated companies,
net of the share attributable to Non-controlling interest
751
1,839
12,267
18,034
Consolidation adjustments on the Equity and Profit (Loss) for the
year attributable to Owners of the Parent:
elimination of carrying amount of consolidated investments
—
—
(23,793)
(32,498)
impairment losses of consolidated companies included in the
results of parent companies
284
160
9,979
9,711
elimination of goodwill recognized in Parent financial
statements
—
—
(8,814)
(12,064)
recognition of positive differences arising from purchase of
investments, of which:
- goodwill
(52)
—
10,856
16,992
- allocation of the purchase price to the net assets acquired
and liabilities assumed in business combinations
—
—
9
9
measurement of hedging derivatives at Group level
(20)
(1)
52
227
effect of elimination of carrying amount of Parent's shares held
by TIM (formerly Telecom Italia Finance)
—
—
56
56
intra-group dividends
(377)
(2,443)
—
—
change in share of losses (profits) from sale of investments
27
(7)
(528)
(32)
other adjustments
19
6
(230)
55
Equity and Profit (Loss) for the year attributable to Owners of
the Parent
(610)
(1,441)
11,957
13,646
Equity and Profit (Loss) for the year attributable to Non-
controlling interest
246
334
1,404
3,867
Equity and Profit (Loss) for the year in the Consolidated
Financial Statements
(364)
(1,107)
13,361
17,513
Report on Operations of
TIM S.p.A.
Reconciliation of Consolidated Equity
120
CORPORATE BODIES AS OF DECEMBER 31, 2024
Board of Directors
The Ordinary Shareholders’ meeting of TIM, held on April 23, 2024, appointed a Board of nine Directors for a
three-year term of office (up to the approval of the financial statements at December 31, 2026). At its meeting
on April 24, 2024, the Board of Directors appointed Alberta Figari as its Chairman (qualifying as an independent
director) and Pietro Labriola as Chief Executive Officer and General Manager of the Company (qualifying as a
non-independent executive director).
The current power structure of the Company provides the assignment:
■
to the Chairman, of the powers contemplated by law, the bylaws and corporate governance
arrangements;
■
to the Chief Executive Officer, of all powers necessary to perform acts pertinent to the Company’s business,
except for the powers reserved to the Board of Directors.
At December 31, 2024, the Board of Directors of TIM S.p.A. had the following members:
Chairman
Alberta Figari (independent)
Chief Executive Officer and General Manager
Pietro Labriola
Directors
Domitilla Benigni (independent)
Paola Camagni (independent)
Federico Ferro Luzzi (independent)
Paola Giannotti De Ponti (independent)
Giovanni Gorno Tempini
Umberto Paolucci (independent)
Stefano Siragusa (independent – pursuant to Consolidated Law on
Finance)
Secretary to the Board
Agostino Nuzzolo
The following board committees were in place at December 31, 2024:
■
Control and Risk Committee, made up of the Directors: Federico Ferro Luzzi (Chairman), Paola Camagni
and Paola Giannotti De Ponti;
■
Nomination and Remuneration Committee, made up of the Directors: Paola Giannotti De Ponti
(Chairman), Domitilla Benigni and Umberto Paolucci;
■
Related Parties Committee, made up of the Directors: Paola Camagni (Chairman), Federico Ferro Luzzi
and Umberto Paolucci;
■
Sustainability Committee, made up of the Chairman of the Board of Directors Alberta Figari (Chairman),
CEO Pietro Labriola, and Directors Domitilla Benigni, Giovanni Gorno Tempini and Stefano Siragusa.
Board of Statutory Auditors
The Ordinary Shareholders’ Meeting of TIM S.p.A., held on April 24, 2024, appointed the Company’s Board of
Statutory Auditors for a term of office that will end with the approval of the 2026 financial statements.
The Board of Statutory Auditors of the Company is now composed as follows:
Chairman
Francesco Fallacara
Standing Auditors
Anna Doro
Massimo Gambini
Francesco Schiavone Panni
Mara Vanzetta
Alternate Auditors
Massimiliano Di Maria
Laura Fiordelisi
Paolo Prandi
Carlotta Veneziani
For more details, please refer to the 2024 TIM Group Sustainability Statement section, [21..], [22..], [23..], [G1..],
[26..].
Independent Auditors
The engagement for the independent auditing of the financial statements of TIM S.p.A. for the nine-year
period 2019-2027 was awarded to EY S.p.A. by the shareholders’ meeting of March 29, 2019.
Report on Operations of the
TIM Group
Corporate bodies as of December 31, 2024
121
Executive responsible for preparing the corporate accounting
documents
At the meeting of April 24, 2024, the Board of Directors appointed Adrian Calaza Noia (Head of the Group Chief
Financial Office) as the manager responsible for preparing the financial reports of TIM S.p.A.
Sustainability Manager
At the meeting of December 11, 2024, the Board of Directors appointed Maria Enrica Danese (Head of the
Group’s Corporate Communication & Sustainability function) as Sustainability Manager of TIM S.p.A.
Report on Operations of the
TIM Group
Corporate bodies as of December 31, 2024
122
Report on Operations of the
TIM Group
Macro-organization chart at December 31, 2024 123
MACRO-ORGANIZATION CHART AS
AT DECEMBER 31, 2024
For more details, please refer to the 2024 TIM Group Sustainability Statement section, [66 a]
BOARD OF
DIRECTORS
AUDIT
COMPLIANCE
R. RAMONDINO
M. TURCONI
CHAIRMAN
A. FIGARI
CHIEF EXECUTIVE
OFFICER
P. LABRIOLA
A. CALAZA
CHIEF FINANCIAL
OFFICE
LEGAL, REGULATORY
& TAX
A. NUZZOLO
PROCUREMENT &
LOGISTICS
G. LEONE
R. MAZZILLI
CHIEF IT GROUP
OFFICE
TRANSFORMATION
A. MICHELINI
C. G. E. ONGARO
CHIEF STRATEGY,
BUSINESS DEVELOPMENT
& WHOLEBUY
OFFICE
CHIEF PUBLIC AFFAIRS,
SECURITY AND
INTERNATIONAL
BUSINESS OFFICE
E. SANTAGATA
A.M. GRISELLI
A. ROSSINI
E. SCHIAVO
a.i. P. LABRIOLA
CHIEF ENTERPRISE AND
INNOVATIVE
SOLUTIONS OFFICE
CHIEF CONSUMER,
SMALL & MEDIUM AND
MOBILE WHOLESALE
MARKET OFFICE
PRESIDÊNCIA TIM S.A.
CHIEF TECHNOLOGY
OFFICE
P. CHIRIOTTI
CHIEF HUMAN
RESOURCES &
ORGANIZATION OFFICE
M. E. DANESE
CORPORATE
COMMUNICATION &
SUSTAINABILITY
PURSUANT TO ITALIAN LEGISLATIVE DECREE 125/24
SUSTA
INABI
LITY
CONTENTS
SUSTAINABILITY REPORT PREPARED IN
ACCORDANCE WITH LEGISLATIVE DECREE 125/24
1. General information ........................................................................... 126
Basis for preparation ......................................................................................................................
126
Governance ......................................................................................................................................
129
Strategy ............................................................................................................................................
137
Impact, risk, and opportunity management ..............................................................................
152
Index of ESRS contents and contents from other EU legislative acts ....................................
156
2. Environmental information .............................................................. 165
EU taxonomy ...................................................................................................................................
165
Implementation of the European Taxonomy in the TIM Group .......................................
165
The scope of eligibility of the TIM Group ..............................................................................
165
Verification of alignment of technical screening criteria and DNSH ...............................
168
Verification of compliance with the Minimum Safeguard Guarantees ...........................
168
Criteria for calculating the required KPIs for eligible and aligned activities ...................
169
Models for fundamental performance indicators (KPIs) of non-financial firms ............
171
Climate Change [ESRS E1] .............................................................................................................
180
Strategy .....................................................................................................................................
180
Impact, risk, and opportunity management .......................................................................
182
Metrics and targets ..................................................................................................................
190
Resource use and circular economy [ESRS E5] ..........................................................................
198
Impact, risk, and opportunity management .......................................................................
198
Metrics and targets .................................................................................................................
201
3. Social information .............................................................................. 204
Own workforce [ESRS S1] ..............................................................................................................
204
Strategy .....................................................................................................................................
204
Impact, risk, and opportunity management .......................................................................
205
Metrics and targets ..................................................................................................................
220
Workers in the value chain [ESRS S2] ..........................................................................................
229
Strategy .....................................................................................................................................
229
Impact, risk, and opportunity management .......................................................................
229
Metrics and targets ..................................................................................................................
235
Affected communities [ESRS S3] .................................................................................................
236
Strategy .....................................................................................................................................
236
Impact, risk, and opportunity management .......................................................................
236
Metrics and targets ..................................................................................................................
240
Consumers and end-users [ESRS S4] ..........................................................................................
241
Strategy .....................................................................................................................................
241
Impact, risk, and opportunity management .......................................................................
242
Metrics and targets ..................................................................................................................
254
4. Governance Information ................................................................... 255
Business conduct [ESRS G1] ..........................................................................................................
255
Impact, risk, and opportunity management .......................................................................
255
Metrics and targets ..................................................................................................................
263
5. NetCo performance information ..................................................... 264
Introduction .....................................................................................................................................
264
Sustainability performance ...........................................................................................................
265
1.
GENERAL INFORMATION
Basis for preparation
Disclosure Requirement BP-1 – General basis for preparation of sustainability
statements
[5 a]: The TIM Group’s Sustainability Report is drawn up in accordance with the Corporate Sustainability
Reporting Directive (CSRD), transposed into Italian law by Legislative Decree 125/2024. The reporting is carried
out in line with the European Sustainability Reporting Standards (ESRS) and includes in the “Environment”
section the information required pursuant to Article 8 of the EU Taxonomy and related delegated acts. The TIM
Group’s Sustainability Report was prepared on a consolidated basis and was approved by the Board of
Directors (“BoD”) on March 5, 2025.
[5 b i, ii]: The TIM Group’s Sustainability Report presents data and information relating to the company TIM
S.p.A. and its subsidiaries consolidated on a line-by-line basis as of December 31, 2024, as presented in the TIM
Group's Consolidated Financial Statements.
The 2024 Sustainability Reporting takes into account the spin-off of the NetCo business into FiberCop S.p.A.
and Optics BidCo S.p.A.'s purchase of TIM S.p.A.'s entire stake in FiberCop on July 1, 2024. In light of the above,
NetCo's performance for the first six months of 2024 is reported in Section 5 of this Report, as referenced in the
'Metrics and Targets' paragraph of each chapter.
The scope of the Sustainability Reporting coincides with that of the Group's consolidated financial statements,
with the specifics noted below.
Perimeter and calculation methods - Environment
For the environmental data, starting from the boundary of the consolidated financial statements of the
Domestic BU's half-year 2024, as a result of the boundary changes that occurred in July 2024, companies that
met at least one of the following significance criteria were included:
■
0.5% of total turnover (€000);
■
0.5% of the total number of employees (no.);
■
0.1% of total expenditure on energy and fluids (€000).
Based on these criteria, the following 11 Group companies are included in the environmental perimeter: TIM
S.p.A., TIM Sparkle Italia, TIM Sparkle Grecia, TIM Sparkle Turchia, Panama Digital Gateway, Noovle S.p.A.,
Olivetti S.p.A., Telecontact Center S.p.A., Telsy S.p.A., TIM Retail S.r.l., TIM S.A.
In the document, the term Domestic BU (or Domestic) is used in some disclosure requirements regarding the
environment in order to refer to companies in the environmental perimeter excluding TIM S.A.
Perimeter and calculation methods - Social
For workforce data, all Group companies in which at least 1 employee works are considered, in a similar way to
the consolidated financial statements, i.e: TIM S.p.A., TIM Sparkle Italia, Noovle S.p.A., Noovle Malta, Olivetti
S.p.A., Telecontact Center S.p.A., Telsy S.p.A., TIM Retail S.r.l, TI Trust Technologies, TS Way, QTI S.r.l., Mindicity,
le società estere controllate da TIM Sparkle, TIM San Marino, Telefonia Mobile Sammarinese, TIM S.A., TIM
Finance and TIM Capital.
In the document, the term Domestic BU (also Domestic) is used in some ESRS disclosure requirements dealing
with “Social” topics to refer to the companies in the perimeter mentioned above, excluding TIM S.A., TIM
Finance and TIM Capital.
For some specific datapoints related to the ESRS S1 "Own workforce" reporting requirement, separate data
evidence is required by country according to a specific materiality criterion (50 or more employees representing
at least 10% of the total number of employees in the Group). In these cases, the application of the criterion
reports to the Group companies present in Italy and Brazil. The companies included in the “Italy” perimeter are:
TIM S.p.A., TIM Sparkle Italia, Noovle S.p.A., Olivetti S.p.A., Telecontact Center S.p.A., Telsy S.p.A., TIM Retail S.r.l,
TI Trust Technologies, TS Way, QTI S.r.l., Mindicity. The company considered in the “Brazil” perimeter is TIM S.A.
[5 c]: TIM Group Sustainability Reporting provides a view of the value chain, including, where possible, the
actors involved both upstream and downstream.
This approach is first used in the materiality analysis of impacts, risks and opportunities (hereafter also referred
to as “IRO”) where it is specifically indicated whether these refer to TIM’s activities or its value chain (cf.
“Disclosure Requirement SBM-3 - Material impacts, risks and opportunities and their interaction with strategy
and business model). In addition, some metrics already integrate value chain information, such as in the
calculation of Scope 3 greenhouse gas emissions.
As for policies, objectives and initiatives, whenever they involve actors in the value chain, this aspect is
explained in the corresponding sections.
For other metrics related to the value chain, the TIM Group has chosen to postpone the preparation of a data
collection plan until later years, in line with the phase-ins required by ESRS.
[5 d]: In the Sustainability Report, the TIM Group has not omitted any sensitive information regarding patents,
intellectual property, know-how or innovation results to protect its competitive advantages.
Report on Operations of the
TIM Group
Basis for preparation
126
[5 e]: The TIM Group communicates all sensitive information that may influence the market or its shareholders,
such as financial news, substantive changes or other issues that are under negotiation or development and
that are not yet defined. Therefore, it does not take advantage of the exemption from reporting information
concerning upcoming developments or issues under negotiation.
Disclosure Requirement BP-2 – Disclosure in relation to specific circumstances
[9 a, b]: When reporting information related to sustainability issues, the TIM Group considers the time horizons
that are in line with those adopted in the Enterprise Risk Management field. Specifically:
■
short term: 1 year;
■
medium term: from the end of the short-term reference period up to three years;
■
long term: more than three years.
This choice differs from the time horizons defined by ESRS 1- 6.4 "Definition of short, medium and long term
for reporting purposes," but reflects the reference period adopted in the Group's financial statements and
strategic planning.
[10 a, b, c, d], [11 a], [11 b i,ii]: On July 1, 2024, TIM S.p.A. completed the spin-off of the NetCo business into
FiberCop S.p.A., which was already operating the fiber and copper secondary network. At the same time,
Optics BidCo S.p.A. purchased TIM S.p.A.'s entire stake in FiberCop. A transaction agreement governed the
contractual terms between the new entity “NetCo” (FiberCop S.p.A.) and TIM S.p.A.
As a result of this transaction, Sustainability Reporting considers TIM Group activities excluding NetCo, as if
the separation had taken place on January 1. To represent 2024 as the base year:
■
NetCo’s environmental and social metrics for the period from January 1 to June 30, 2024 were identified
and unbundled;
■
estimates were made to identify TIM consumption data related to buildings used by TIM staff and
colocation infrastructure, for which detailed data were not available from the external owner.
The Group then used estimates for metrics related to waste for disposal, average employee size by gender by
contract type, and average bill payment times. The forward-looking information was developed from
assumptions and estimates regarding future events and possible actions that the Group may take. Further
details on the metrics are covered in the reference paragraphs. Furthermore, with regard to the calculation of
Scope 3 GHG emissions presented in Chapter "2. Environmental Information", it should be noted that
estimated data related to activities carried out along the TIM Group’s value chain (both upstream and
downstream) have been used, and that these calculations are based on assumptions and third-party sources.
In addition, where permitted by Appendix C of ESRS 1, the Group has used a phased-in process for
implementing certain metrics that require additional data or complex collection systems (phase-in) with a
commitment to full coverage by the regulatory deadlines.
Financial resources in terms of significant operating expenditures (OpEx) and capital expenditures (CapEx) are
reported in the description of the actions. For some actions, however, it is not possible to provide such values
due to the non-unique nature of the expenses (indirect costs, shared costs, intercompany costs). In addition,
for each share, the exact detail between OpEx and CapEx and individual items in the TIM Group’s consolidated
income statement is not available, although, based on the nature of the shares, the expenses can be traced to
the following notes to the consolidated financial statements.
CapEx
No. 5 Intangible assets:
■
Industrial patents and intellectual property rights
■
Concessions, licenses, trademarks and similar rights
■
Intangible assets with a finite useful life
■
Work in progress and advance payments
No. 6 Tangible assets:
■
Land
■
Buildings (civil and industrial)
■
Plant and equipment
■
Manufacturing and distribution equipment
■
Other
■
Construction in progress and advance payments
Report on Operations of the
TIM Group
Basis for preparation
127
OpEx
No. 28 Purchases of materials and services:
■
Purchase of raw materials and goods
■
Costs of services
•
Revenues due to other TLC operators
•
Costs for telecommunications network access services
•
Commissions, sales commissions and other selling expenses
•
Advertising and promotion expenses
•
Professional and consulting services
•
Energy consumption
•
Maintenance costs
•
Outsourcing costs for other services
•
Mailing and delivery expenses for telephone bills, directories and other materials
•
Other service expenses
■
Lease and rental costs:
•
Rent and leases
•
TLC circuit subscription charges
•
Other lease and rental costs
No. 29 Employee benefits expenses:
■
Ordinary employee expenses:
•
Wages and salaries
•
Social security contributions
•
Other employee benefits
■
Costs and provisions for agency contract work
■
Other expenses for employees and other labor-related services rendered:
•
Expenses for corporate restructuring and termination benefit incentives
•
Other
In this regard, it is specified that the Group has initiated a more specific data collection and monitoring process
for the upcoming reporting cycles.
[13 a], [14c]: Sustainability Reporting considers TIM Group’s activities excluding NetCo, i.e., as if the transaction
to contribute the secondary fiber and copper network to FiberCop had taken place on January 1. The aim is to
establish a new reference base year to evaluate the achievement of the objectives of the Business Plan.
NetCo’s significant activities for the first half of the year are included in a specific section.
The significant change in the operating perimeter, both in terms of the size of infrastructure assets and
personnel, no longer allows for the comparison of emission performance with previous years, requiring a new
baseline to monitor progress. Because of this discontinuity within the document it is not possible to provide
comparative information on activities with respect to previous years.
In addition, the development of a new Transition Plan is required, which will involve re-validation of the
environmental objectives by SBTI, as required by the corporate climate action organisation's recommendations
in similar situations (for details see the E1-1 disclosure requirement “Transition plan for climate change
mitigation”).
[15]: The TIM Group includes in its Sustainability Report information required by other generally accepted
regulations or provisions, in addition to those prescribed by the ESRS and, in the case of partial application of
other principles, provides precise references to the paragraphs applied.
[16]: When TIM includes information by reference, it indicates the reference to the ESRS disclosure requirement
or specific elements (e.g. see ESRS disclosure requirement 2 GOV-3 "Integration of sustainability-related
performance in incentive schemes").
Report on Operations of the
TIM Group
Basis for preparation
128
Governance
Disclosure Requirement GOV-1 – The role of the administrative, management and
supervisory bodies
[21 a]: On April 23, 2024, the Shareholders' Meeting appointed the Board of Directors for the three-year period
2024-2026, consisting of an Executive Director (the CEO, who is also given the position of General Manager)
and eight non-executive directors (including the Chairman of the Board of Directors).
As of December 31, 2024, the Board of Directors maintains the above-mentioned structure.
The Shareholders’ Meeting also renewed the Board of Statutory Auditors, made up of five standing auditors,
including the Chair, and 4 alternate auditors.
In the appointment of the Statutory Auditors, Article 17 of the Articles of Association was applied, which
provides for the presence of five standing auditors and of four alternate auditors.
As of December 31, 2024, the Board of Statutory Auditors maintains the above-mentioned structure.
[21 b]: The TIM Group does not provide for trade union representation within the administrative, management
and supervisory bodies.
[21 c]: The members of the Board of Directors have adequate skills in the sector and in the geographical areas
in which the company operates.
In view of the Board’s renewal, an orientation to shareholders was published on January 18, 2024, stressing the
importance of selecting high-profile candidates.
The table below summarizes the composition and expertise of the Board members, which are cross-cutting to
the sustainability issues and relevant IROs that emerged from the double materiality analysis, particularly with
regard to digital technologies and business conduct.
[21 c]: Composition and responsibilities of the Board of Directors
Age
Languages
Digital TLC
Technology
Finance
(M&A)
Risk
Audit
Corporate
Governance
Legal
Management
experience in
other sectors
Experience
as a director
in listed
companies
International
experience
Domitilla Benigni
50-60
IT-EN
X
X
X
Paola Camagni
50-60
IT-EN-FR
X
X
Federico Ferro Luzzi
50-60
IT-EN
X
X
X
Alberta Figari
>60
IT-EN
X
X
X
Paola Giannotti De Ponti
>60
IT-EN-FR-ES
X
X
X
X
Giovanni Gorno Tempini
>60
IT-EN
X
X
X
Pietro Labriola
50-60
IT-EN-PT
X
X
X
Umberto Paolucci
>60
IT-EN
X
X
X
X
Stefano Siragusa
<50
IT-EN
X
X
X
X
The following table summarizes the competency matrix of the members of the Board of Statutory Auditors.
The Board of Statutory Auditors periodically evaluates the professional requirements of its members. In 2024,
the self-assessment confirmed that the composition of the supervisory body is balanced and diversified in
terms of professional skills and training.
[21 c]: Composition and responsibilities of the Board of Statutory Auditors
Age
Languages
Digital TLC
Technology
Finance
(M&A)
Risk
Audit
Corporate
Governance
Legal
Management
experience in
other sectors
Experience
as a director
in listed
companies
International
experience
Francesco Fallacara
50-60
IT-EN
X
X
X
Anna Doro
50-60
IT-EN
X
X
X
Massimo Gambini
>60
IT-EN
X
X
X
Mara Vanzetta
50-60
IT-EN
X
X
X
Francesco Schiavone
Panni
>60
IT-EN
X
X
X
[21 d]: In the selection of members of the TIM Group’s Board of Directors and Board of Statutory Auditors, any
form of discrimination in terms of ethnicity, nationality, country of origin, gender, sexual orientation, religion,
political opinion or other nature is excluded. The Group actively promotes the presence of women on the Board
to ensure more balanced governance and an appropriate variety of perspectives and skills among members. In
addition, in the appointment of the Directors, Article 9.1 of the Articles of Association was applied, which
provides for the presence of representatives of the least represented gender in an amount equal to at least
Report on Operations of the
TIM Group
Governance
129
two-fifths of the total. Indeed, the female representation on the Board consists of four members; the male
representation is five.
In 2024, the Board of Directors of the TIM Group was made up of 44% women and 56% men. As for the Board
of Statutory Auditors, the female composition is 40%, while the male composition is 60%. Of the five Standing
Auditors, three are male and two are female, and of the four Alternate Auditors, two are male and two are
female.
[21 e]: In the TIM Group Board of Directors, 67% of the directors (i.e., 6 out of 9) have the independence
requirement. In particular, the Directors Benigni, Camagni, Ferro Luzzi, Figari, Giannotti De Ponti and Paolucci
are independent pursuant to Article 148 of the TUF and the Corporate Governance Code; the Director Siragusa
qualifies as independent pursuant to Article 148 of the TUF.
[22 a]: The Board of Directors plays a role of strategic guidance and supervision, pursuing the main objective of
creating value for shareholders in the medium-long term, also taking into account the legitimate interests of
the other stakeholders, with a view to the sustainability of the business. In carrying out its role, the BoD is
supported by four board committees with advisory, proposal, monitoring and investigative functions: the
Control and Risk Committee, the Nomination and Remuneration Committee, the Related-Parties
Committee and the Sustainability Committee. Each Committee has its own regulations that describe the
composition and methods of appointment of the members and operating rules.
The Sustainability Committee, established in April 2021 and chaired by the Chair of the Board of Directors,
oversees positioning, objectives, processes and initiatives in the field of environmental, social and governance
(ESG) sustainability, interacting with:
■
the Nomination and Remuneration Committee, for the inclusion of ESG objectives in the Company’s
remuneration policy as well as for the adoption of measures to promote equal treatment and
opportunities between genders within the company;
■
the Control and Risks Committee for the analysis of double materiality, namely the ESG impacts, risks and
opportunities material to the company based on the Sustainability Report.
The Board of Statutory Auditors exchanges material information with the Control and Risks Committee and
with the Sustainability Committee for the performance of its tasks. This interaction is also functional to the
activity of verifying the consistency of the Sustainability Report with respect to the regulatory provisions of
reference, strategic objectives and company policies indicated in the business plans.
The Board of Statutory Auditors ensures that the Sustainability Report contains information regarding the
impact of the company’s activities on the environment, people and governance, and the way in which the risks
and opportunities deriving from sustainability issues may affect the company’s economic and financial
performance. To this end, the Chairman of the Board of Statutory Auditors, or another designated Auditor,
participates in the work of the Control and Risk Committee and other Board committees, with the right for
other Auditors to attend meetings.
The integration of sustainable practices into business operations is entrusted to the Corporate Communication
& Sustainability Department, reporting directly to the Chief Executive Officer. Within this structure, the
“Sustainability” function defines, in collaboration with the competent business functions, the governance and
coordination of the Group’s ESG Plan and related targets, social and environmental sustainability initiatives,
draws up the Sustainability Reporting and oversees the sustainability indices/ratings.
Within the Group, TIM S.A. also has its own governance structure with four board committees to support the
Board of Directors.
Sustainability issues are managed by the Corporate Communication & Sustainability Department and, at the
strategic level, by the ESG Committee, which interacts with the Compensation Committee and the Audit and
Risk Committee of the Brazilian subsidiary.
[22 b]: TIM’s System of Internal Control and Risk Management (ICRMS) is fundamental to the Group’s
organization. It includes various actors working in a coordinated way according to their responsibilities.
Composed of rules, procedures, and organizational structures, the SCIGR identifies, measures, manages, and
monitors major risks, ensuring sound management consistent with the company's objectives, in accordance
with the TIM Group Code of Ethics and Conduct and the Self-Regulatory Principles.
The ICRMS is divided into three levels of control and is applied at a Group level, taking into account specific,
individual operational aspects:
■
the first level consists of management that identifies, monitors and evaluates impacts, risks and
competence opportunities, defines the mitigation actions and ensures the proper conduct of Operations. In
the ESG field, the Sustainability function identifies and assesses the extent of relevant sustainability
impacts, risks and opportunities with the Risk Management, Compliance and Finance functions;
■
the second level is represented by the Enterprise Risk Management, Health & Safety, and Compliance
Departments, which define, evaluate, and monitor risk measurement methodologies and provide support
to management in defining and mitigating risks;
■
the third level of control is provided by the Audit Department, which independently and impartially
assesses the adequacy of the design of the operation of the control system, including through audit
activities on the first and second levels.
The Board of Directors of TIM plays a governance role within the internal control system, considering its
function of steering and assessing the adequacy of the System. Specifically:
■
it defines the Internal Control and Risk Management System Guidelines;
■
it approves the Group’s Code of Ethics and Conduct and the Organization, Management and Control Model
pursuant to Legislative Decree 231/01.
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GOVERNANCE (BOD)
■
it establishes the Control and Risk Committee, comprising Board Members, that supports the Board in
carrying out assessments and taking decisions relating to the ICRMS, as well as other committees
(Nomination and Remuneration Committee, Sustainability Committee and Related Parties Committee)
with advisory functions, described in TIM’s Corporate Governance Principles and in the specific regulations;
■
it verifies the appropriateness, effectiveness and proper functioning of the ICRMS, so that the main
business risks, including those related to material issues, are correctly identified, monitored and managed
over time. To this end:
•
it assesses the adequacy and effectiveness of the ICRMS each half-year, with respect to the
characteristics of the Company and the risk profile undertaken, also considering the outcomes of the
assessment carried out by the Audit Department based on contributions received from the other
control functions (Assurance Providers);
•
it defines the level and type of risk that the company is able to assume, in line with long-term strategic
objectives (so-called Risk Appetite).
Management of the ICRMS is entrusted to the Chief Executive Officer, the Financial Reporting Officer and the
Sustainability Officer, each within their respective areas of responsibility, to ensure the adequacy and
functionality of the System from a risk-based perspective.
In September 2022, TIM’s Board of Directors created the ICRMS Steering Committee, headed by the CEO, to
identify, define, and monitor initiatives to improve the company's Internal Control and Risk Management
System, based on an integrated analysis of the activities carried out by the control functions and other
corporate functions.
On September 27, 2023, the TIM Board of Directors approved, after the opinion of the Control and Risks
Committee, the “Guidelines of the TIM Group’s Internal Control and Risk Management System” (“ICRMS
Guidelines”) that define the architecture of the ICRMS, the main corporate roles and responsibilities in the field
of ICRMS, the coordination methods and information flows between the parties involved, the periodic
evaluation process of TIM’s ICRMS.
The Board of Statutory Auditors plays a key role in ensuring the effectiveness of the ICRMS, in line with the
Corporate Governance Code. It receives information necessary to carry out its supervisory duties, including
Audit Reports and periodic reports from the Audit Department, and has the authority to request the Audit
Department to prepare timely reports on events of special significance.
The TIM Group's ICRMS can be summarized by the following diagram:
[22 d] [G1 GOV-1, 5 a]: The TIM Group Board of Directors guides, coordinates, monitors and reviews corporate
strategy and governance to create long-term value. It oversees compliance with the ethical and social
responsibility principles of the Code of Ethics and Conduct, promoting a culture based on integrity,
transparency and respect for human rights, and ensuring compliance with applicable regulations.
Here are some of its main functions:
■
it defines the corporate governance system and the structure of the Group;
■
it sets the company’s strategic direction by reviewing and approving the Group’s strategic, industrial,
financial and sustainability plans, prepared by the CEO, and periodically monitoring their implementation;
■
it analyzes business and financial performance to ensure the Company’s profitability and sustainability,
evaluating the management of the Group and strategic Subsidiaries, relying on information from the CEO
and comparing results with planned results;
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First Level
of control
Management,
functions of
line/operations
Second Level
of control
Risk
control/
monitoring
functions
Third Level
of control
Internal Audit
function
■
it defines the guidelines of the Internal Control And Risk Management System, verifying its adequacy and
operation, ensuring that key business risks are properly identified, monitored and managed;
■
it periodically evaluates, with the support of the Sustainability Committee, the progress achieved with
respect to the goals defined in the sustainability plan and proposes corrective actions if necessary;
■
it approves, at least once a year and after consulting the Control and Risk Committee, the Plans of the
Compliance and Audit Departments;
■
it is responsible for transparency in financial and non-financial communications to investors;
■
it appoints the members of the Supervisory Body pursuant to Legislative Decree 231/2001 (“231 Supervisory
Body”), after hearing the opinion of the Control and Risk Committee and the Board of Statutory Auditors;
■
it approves the Group’s Code of Ethics and Conduct and the Organization, Management and Control Model
pursuant to Legislative Decree 231/01.
Members of the administrative management and supervisory bodies possess adequate expertise in business
conduct (see disclosure requirement GOV-1 paragraph 21c of this section).
[23 a, b]: The five Directors on the Sustainability Committee possess diverse skills and experience, ensuring
cross-cutting coverage of sustainability issues and an effective assessment of the Company’s relevant ESG
impacts, risks and opportunities:
■
Alberta Figari: Chair of the Board of Directors and Chair of TIM’s Sustainability Committee, she has
consolidated experience on board committees of listed groups including Assurazioni Generali S.p.A., where
she served as Chair of the Control and Risks Committee and, for individual three-year terms, also the role
of Chair of the Related Parties Committee and member of the Nomination and Remuneration Committee.
These skills are crucial for monitoring sustainability issues, especially in financial risk management and
regulatory compliance;
■
Pietro Labriola: Chief Executive Officer and General Manager of the TIM Group since 2022, he has 30 years
of expertise in the TLC sector first in TIM S.A. since 2015 as Chief Operating Officer and then since 2019 as a
Director, acquiring a deep understanding of industrial and strategic dynamics related to digital
transformation and environmental sustainability. Before joining TIM, Labriola worked at Infostrada, as
business development and marketing director and held positions in Boston Consulting Group,
Cable&Wireless and France Telecom;
■
Giovanni Gorno Tempini: Chairman of the Board of Directors of Cassa Depositi e Prestiti (CDP) since
October 24, 2019, he leads the integration of environmental, social and governance (ESG) sustainability
principles into the institution’s strategic and operational choices to create long-term value for society and
communities. CDP’s commitment to sustainability is formalized in the 2025-2027 ESG Plan, with goals for a
fair and competitive ecological transition and for Italy’s sustainable development. He is also a member of
various committees and boards, including the Scientific Committee of the Aristide Merloni Foundation, the
Board of Assonime, the General Council of AIFI, and the Board of ISPI. He has held positions as chairman of
the “Technical Commission for Finance” of ABI and director of Borsa Italiana S.p.A.
■
Domitilla Benigni: She has been General Manager since 2010, CEO since 2020 and shareholder of the
company Elettronica S.p.A. Since June 2022 she has been a member of the Technical Scientific Committee
of the National Cybersecurity Agency and since November of the same year she has been a member of the
Technical Scientific Committee of the Center for Aeronautical Military Studies (CESMA). Her cybersecurity
expertise supports the management of technology risks, including those related to data security and
critical infrastructure;
■
Stefano Siragusa: has held and holds positions of Director and President of listed and unlisted companies
in the infrastructure, telecommunications and transport sectors including Sparkle, Inwit, Persidera, ENAV,
Noovle, Saipem, Mermec, Marangoni, Metro 5 Milan. His experience in large infrastructure works and
management of complex projects is essential for assessing the Group's environmental impacts and
footprint reduction strategies.
To emphasize the Company’s commitment to ESG issues, the Board of Directors of May 29, 2024 amended
TIM’s Principles of Self-Governance with respect to the composition of the Sustainability Committee, including
the CEO among its members. The Corporate Communication & Sustainability Department is also expected to
attend all Committee meetings.
Disclosure Requirement GOV-2 – Information provided to and sustainability matters
addressed by the company’s administrative, management and supervisory bodies
[26 a]: The Board of Directors is periodically informed about the impacts, risks and opportunities relevant to the
Company, as well as the actions and policies adopted to address them, including through endoconsiliar
committees such as the Audit and Risk Committee and the Sustainability Committee, which meet according to
an annually established agenda.
The Board of Statutory Auditors is also informed about these aspects, having access to all the documents and
information necessary to carry out its supervisory work and participating in the work of the Board Committees.
With regard to sustainability issues, the outcome of the double-materiality analysis process, which identifies
the impacts, risks and opportunities material to the Company, at the base of the construction of the
Sustainability Reporting, is presented by the Corporate Communication & Sustainability function in a joint
annual session with the Control and Risks Committee, the Sustainability Committee and the Board of Statutory
Auditors. In 2024, the session took place on October 11. The outcome of the double materiality analysis was
then presented to the Board of Directors on December 11, 2024.
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[26 b, c]: The TIM Group’s administrative, management and control bodies use the Enterprise Risk
Management (ERM) process to quantify significant risks for the Company. This process supports management
in identifying the strategies to be adopted, providing a picture of possible risk or opportunity scenarios.
The ERM process is continuous and involves all business functions (Risk Owners) participating in periodic Risk
Assessments to update possible risk scenarios, including emerging ones. This approach allows maintaining
proactive and up-to-date risk management, ensuring that the company is prepared to face any future
challenges.
[26 b,c]: Main stakeholders involved in the ERM process
`
The ERM process is a fundamental strategic tool for risk management and for creating value for the Company.
The model is aligned with international regulations and standards and makes it possible to identify, evaluate
and manage risks in a homogeneous way within the Group, highlighting potential synergies between the
actors involved in the evaluation of the Internal Control and Risk Management System (ICRMS).
The ERM process is integrated with strategic and operational planning processes and is designed to identify
potential events that may affect business activity. The objective is to manage risk within acceptable limits
without compromising the financial, operational and reputational stability of the company, ensuring the
achievement of business objectives.
The ERM process involves several key activities:
■
identification and updating of the overall risk portfolio in collaboration with the Risk Owners through
analysis of the Business Plan and investment projects, monitoring of the macroeconomic and regulatory
environment, and analysis of the risks to which company assets may be exposed;
■
quantitative assessment of risks, both individually and from a portfolio perspective, taking into account
possible correlations;
■
supports management in defining risk appetite and related tolerances that are preliminarily validated by
the Control and Risk Committee and subsequently approved by the Board of Directors;
■
definition and monitoring of risk mitigation plans, with periodic updates to the Control and Risk
Committee on the level of risk detected with respect to the approved Tolerances. This documentation is
then submitted for final approval to the Board of Directors;
■
management of the flow of information to top management and the bodies responsible for evaluating
the ICRMS, producing the related supporting reports on a regular basis or at the request of the Supervisory
Bodies;
■
periodic management of the ERM Steering Committee to document and communicate to the respective
Risk Owners the state of the Tolerances, in order to act promptly with appropriate remedial actions if
necessary.
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EXECUTIVE BODY
ERM STEERING
COMMITTEE
(Chaired by the CFO)
FUNCTION
ENTERPRISE RISK
MANAGEMENT
BOARD OF DIRECTORS
RISK OWNER
SUBSIDIARIES
COMMITTEE
FOR THE
RISK CONTROL
BOARD OF
STATUTORY
AUDITORS
CAPITAL
ALLOCATION
COMMITTEE
AUDIT
DEPARTMENT
COMPLIANCE
DEPARTMENT
The risk management model takes an integrated and thoughtful approach to sustainability issues, considering
economic, environmental, social, and governance (ESG) risks relevant to stakeholders according to the double
materiality analysis.
Impacts identified through double materiality analysis are also integrated into business strategies, decision-
making processes, and Enterprise Risk Management (ERM), ensuring that strategic decisions are informed by a
comprehensive understanding of potential risks for responsible and sustainable governance.
For detailed evidence of ESG-relevant risks and opportunities see disclosure requirements IRO-1 “Description of
processes to identify and assess relevant impacts, risks and opportunities”, E1-IRO 1 “Description of processes
to identify and assess material climate-related impacts, risks and opportunities”, and E5 IRO-1 “Description of
processes to identify and assess material impacts, risks and opportunities related to resource use and the
circular economy”.
For the list of impacts of the relevant risks and opportunities faced by the administration, management and
control bodies or their related committees during the reference period, please refer to disclosure requirement
SBM-3 “Significant impacts, risks and opportunities and their interaction with the strategy and the business
model” in this section.
Disclosure Requirement GOV-3 – Integration of sustainability-related performance in
incentive schemes
[29 a,b,c,d, e]: The TIM Group's Report on the remuneration policy and compensation paid is designed to
support the achievement of the Company's strategic objectives and to focus on different business segments.
This policy guarantees the necessary levels of competitiveness in the labor market and promotes the
alignment of management interests with the goal of creating value for the company in the short and long
term.
The Report on the remuneration policy and compensation paid adopts an appropriate balance of performance
parameters of short-term and long-term incentive systems to achieve strategic objectives. The incentive
systems include targets linked to financial performance and ESG (Environmental, Social, and Governance)
goals derived from the three-year Business Plan.
ESG goals are part of the short-term and long-term variable compensation policy, demonstrating the Group's
commitment to sustainability.
Since the Reports on Remuneration Policy and Compensation Paid for 2023 and 2024 were not approved by the
respective Shareholders' Meetings of April 20, 2023 and April 23, 2024, the Report approved by the
Shareholders' Meeting of March 2, 2022 was applied in 2024.
Short-term variable compensation in 2024 includes:
■
a gate objective of an economic and financial nature consisting of the corporate indicator “TIM Group
EBITDA”. Achieving the minimum level of this indicator is a necessary condition for access to the prize. The
weight and minimum level of the objective are differentiated by population cluster, with a gate percentage
of 95% for the Chief Executive Officer and the Front Line and 90% for the Other Management;
■
a pay-out scale used to determine the accrual of the target-related bonus, which is uniform for all
recipients. Each objective is measured individually, allowing different combinations of levels of
achievement of the objectives. The linear interpolation mechanism is used between the minimum (equal
to 50%), target (equal to 100%) and maximum (equal to 150%) objective levels.
■
Function objectives for a weight that varies depending on the different pools of the recipients;
■
ESG objectives with a total weight of 22% divided into the following sub-objectives:
•
Customer Satisfaction Index with a 10% weighting
•
Employee Engagement, in the young employee segment with a 6% weighting
•
Gender Pay Gap, in the Middle Managers segment with a 6% weighting
The Long-term variable compensation includes a 2022-2024 stock option plan for the CEO, Top Management
and a select number of managers with key roles. The approximately 140 target managers are distributed over
three pay opportunity bands in relation to the contribution made to the company’s strategic objectives; for
each band, the number of option rights assigned to target is determined.
The Plan includes two indicators:
■
Economic-financial indicator, with a weight of 70%, consisting of EBITDA — CapEx accumulated over the
three-year period (reported values);
■
ESG indicator, with a weight of 30% divided into two sub-objectives:
•
% of the presence of women in positions of responsibility at the end of 2024, where positions of
responsibility mean positions formalized in the business organization;
•
% renewable energy of the total energy consumed in 2024, defined as MWh from self-produced and
purchased renewable sources divided by total MWh consumed.
The level of achievement of the indicators determines the accrual of option rights over an interval that ranges
from -10% to +10% with respect to the target number allocated per bracket.
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The Report on Remuneration Policy and Compensation Paid is approved by the Board of Directors, upon the
recommendation of the Nomination and Remuneration Committee. For the ESG component, the Sustainability
Committee is also involved.
In 2025, the BoD at its meeting on March 5, 2025 gave a favorable opinion for the ESG component of the short-
term1 variable compensation plan with a total weight of 22% as follows:
■
Environment: number of data centers certified according to the European taxonomy (Italy);
■
Social: women hired out of total hired (Group);
■
Governance: % detractor at 4Q 2025.
[E1 GOV-3, 13]: Climatic aspects are taken into account in the compensation of the Chief Executive Officer and
Executives with Strategic Responsibilities (DRS) through the "Stock Options" Long-Term Incentive Plan
2022-2024. The plan includes a target related to emission reduction and concerning the percentage increase in
the use of renewable energy. The performance parameter is defined as the ratio between renewable electricity
and the total electricity consumed in the 2024 financial year with a target value of 80%.
Disclosure Requirement GOV-4 – Statement on due diligence
[30], [32]: The due diligence is an essential process that allows the TIM Group to evaluate and manage the risks
and opportunities related to its business and its value chain, ensuring that the company operates in a
responsible and sustainable manner, complying with international regulations and standards. The OECD
Guidelines for Multinational Enterprises on Responsible Business Conduct and the United Nations Guiding
Principles on Business and Human Rights are the tools that outline the due diligence process and that form the
basis of the Group’s activities.
The table below provides a summary of the main aspects related to the due diligence referred to in the
Sustainability Report.
[30], [32]: Statement on due diligence
Main aspects of due
diligence
Reference Paragraphs of the Sustainability Report
Embedding of due
diligence in governance,
strategy, and the business
model
• Disclosure Requirement GOV-2 – Information provided to and sustainability matters addressed by the
company’s administrative, management and supervisory bodies;
• Disclosure Requirement GOV-3 – Integration of sustainability-related performance in incentive schemes;
• Disclosure Requirement SBM-3 - Material impacts, risks and opportunities and their interaction with the business
strategy and model (including application requirements related to specific sustainability issues in the relevant
ESRS E1-S1-S2-S3-S4)
Engagement of
stakeholders in due
diligence
• ESRS 2 MDR-P - Policies adopted to manage relevant sustainability issues
• Disclosure Requirement GOV-2 – Information provided to and sustainability matters addressed by the
company’s administrative, management and supervisory bodies
• Disclosure Requirement SBM-2 – Interests and views of stakeholders
• Disclosure Requirement IRO-1 - Description of the process for identifying and evaluating material impacts, risks
and opportunities (including application requirements related to specific sustainability issues in the relevant
ESRS E1-E5)
Identification and
assessment of impacts
and risks
• Disclosure Requirement IRO-1 - Description of the process for identifying and evaluating material impacts, risks
and opportunities (including application requirements related to specific sustainability issues in the relevant
ESRS E1-E5);
• Disclosure Requirement SBM-3 - Material impacts, risks and opportunities and their interaction with the business
strategy and model (including application requirements related to specific sustainability issues in the relevant
ESRS E1-S1-S2-S3-S4)
Actions to address
negative impacts and
risks
• ESRS 2 MDR-A - Actions and resources related to material sustainability issues;
• Disclosure Requirement E1-3 – Actions and resources in relation to climate change policies;
• Disclosure Requirement E5-2 – Actions and resources in relation to resource use and circular economy;
• Disclosure Requirement S1-4 - Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to own workforce, and effectiveness of
those actions;
• Disclosure Requirement S2-4 - Taking action on material impacts on value chain workers, and approaches to
managing material risks and pursuing material opportunities related to value chain workers, and effectiveness
of those actions;
• Disclosure Requirement S3-4 - Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected communities, and
effectiveness of those actions;
• Disclosure Requirement S4-4 – Taking action on material impacts on consumers and end- users, and
approaches to managing material risks and pursuing material opportunities related to consumers and end-
users, and effectiveness of those actions
Monitoring and reporting
of actions to address
negative impacts and
risks
• Disclosure requirement MDR-T - Monitoring the effectiveness of policies and actions through targets;
• Disclosure Requirement E1-4 – Targets related to climate change mitigation and adaptation;
• Disclosure requirement S1-5 - Targets related to managing significant impacts, enhancing positive impacts as
well as risks and opportunities
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1 The 2025 remuneration policy is to be approved by the next Shareholders’ Meeting and will also include ESG goals in the long-term plan. If not
approved, the targets approved with the report of 2022 will apply.
Disclosure Requirement GOV-5 – Risk management and internal controls over
sustainability reporting
[36 a, b]: The Corporate Sustainability Reporting Directive introduces the position of the Sustainability
Reporting Manager as the person responsible for the accuracy, reliability and compliance with standards of the
information contained in the Sustainability Report.
On December 11, 2024, the Board of Directors appointed the Head of the Corporate Communication &
Sustainability Department Maria Enrica Danese as the Sustainability Reporting Manager, with the task of
certifying, together with the Managing Director, that the reporting is prepared in accordance with the reporting
standards under the Law.
In 2024 TIM also adjusted its internal control process by implementing an “Internal Control System on
Sustainability Reporting” (“SCIRS”) to support the certification by the Sustainability Reporting Officer.
The SCIRS Model helps to ensure the reliability and credibility of the Sustainability Reporting, based on the
correct application of the Principles of relevance, comparability, verifiability, adaptability and faithful
representation of information. TIM has prepared guidelines with the methodological references and
responsibilities of the SCIRS and has defined a first set of controls associated with risks on sustainability
disclosures.
To assess and prioritize risks in Sustainability Reporting, the SCIRS draws inspiration from the Committee of
Sponsoring Organizations of the Treadway Commission (CoSO Report) framework and the March 2023
guidance “Achieving Effective Internal Control of Sustainability Reporting (ICSR)”.
The SCIRS Model is divided into the following phases:
■
definition of the scope of analysis based on the risk/materiality analysis;
■
carrying out Entity Level Controls (ELC) across the entire organization or on a single company in the group
to ensure effective oversight of business risks and promote compliance with policies, procedures and
regulations;
■
carrying out general controls on information systems (Information Technology General Controls - ITGC)
to ensure the reliability, security and integrity of the IT systems that support business processes and
information reporting;
■
performing Process Level Controls (PLCs) to ensure the relevance, faithful representation, comparability,
verifiability, and understandability of information and operations performed within business processes;
■
execution of tests and issuance of certificates;
■
independent audits;
■
assessment and management of control deficiencies and remediation plan;
■
Final Certificate and Disclosure to the Administrative and Supervisory Bodies
The risk/materiality analysis for the SCIRS model combined external and internal factors for a balanced
assessment between external assurance expectations and internal business process characteristics. This
analysis covered all datapoints and companies in the consolidation scope of TIM’s Sustainability Report.
The drivers considered for prioritizing the datapoints to be controlled include:
•
the complexity of the database and/or calculation methodology;
•
the potential reputational and/or material impact resulting from misstatement;
•
the centrality of the datapoint with respect to TIM’s sustainability policies;
•
the materiality of the data point with respect to the ratings from the rating agencies.
[36c]: As part of the SCIRS, TIM has implemented Entity Level Controls, i.e., internal controls at the Group,
Company, or Function level to oversee key business risks, which are also used in the Financial Disclosure
Control Model and reflect the organization’s focus on issues such as corporate governance, risk management,
internal control system responsibilities, and the assignment of powers and responsibilities
The survey of Entity Level Controls is based on the CoSO Report, which provides 17 core principles associated
with five typical components of a control system: Business Control Environment, Risk Management Process,
Control Structure, Information System and Monitoring Activities. These components are interconnected and
integrated with management processes.
The 17 control principles are divided into entity-specific control points, allowing for the identification of
organizational and regulatory tools that meet them, taking into account synergies with the system of internal
control over financial reporting.
For datapoints having the highest risk/relevance and for the most significant companies, TIM takes an
approach that evaluates the design of controls from the business processes from which the datapoint
originates. The analysis is carried out through the following operational steps:
■
identification of control responsibilities;
■
analysis of the risks of non-compliance of the datapoint with the qualitative characteristics provided for by
the European Sustainability Reporting Standards (relevance, faithful representation, comparability,
verifiability, comprehensibility);
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■
verifies that the control objectives are fully covered and mitigated by the underlying controls through the
execution of the tests;
■
identification of any areas for improvement.
Since a first implementation of the SCIRS Model on Sustainability Reporting and on training processes on
priority datapoints, the main risks have concerned:
•
the collection of the incomplete / inaccurate / inconsistent database;
•
the incorrect calculation of the data, where the same requires processing and/or estimates and/or the
use of calculation formulas;
•
the incorrect aggregation / consolidation of data;
•
the erroneous attribution of the data in the platform that collects the ESG data (ESG platform);
•
the inaccurate / incomplete / inconsistent preparation of the Sustainability Report document.
In the face of these risks, the following main types of controls are envisaged:
•
correct collection of the database through consistency and completeness checks;
•
correct application of the calculation formulas, as well as the related processes and/or estimates;
•
accurate and complete aggregation of data;
•
correct attribution and approval of the data on the ESG platform;
•
the inaccurate / incomplete / inconsistent preparation of the Sustainability Report document.
[36 d,e ]: The SCIRS Model provides for periodic monitoring of the adequacy and operation of controls through
a combination of self-assessment by responsible corporate functions and independent audits. If the control is
ineffective, the risk of error is assessed in terms of probability and impact, and then managed by opening a
control gap and establishing a remedial plan.
The findings of risk assessment activities and internal controls are reported to the Administrative and Control
Bodies. The Sustainability Reporting Officer, together with the Compliance Department, informs the Board of
Statutory Auditors, the Audit and Risk Committee, and the Sustainability Committee on the status of controls
and related testing; on the identified deficiencies assessed as significant in terms of their potential impact on
Sustainability Reporting; on the relevant remedial plans, coordinating with the Financial Reporting Officer.
In view of the nature of parent company and the consequent need to proceed, in accordance with applicable
legislation, with the preparation of the Consolidated Sustainability Report and the issuance of the related
certificates referred to in Article 154-bis of the TUF, a process has been defined to ensure the coordination of
information flows to the parent company TIM. This coordination is based on internal certificates issued by the
parties involved in different ways in business processes.
Strategy
Disclosure Requirement SBM–1 Strategy, business model and value chain
[40 a i, ii]: TIM is a leader in the development of communication infrastructures, such as mobile and fixed
networks, data centers and international connections, through Sparkle, as well as in offering communication
services for the retail market and in integrated and customized solutions for the large companies and public
administrations market. TIM S.A. stands out as one of the main players in the South American
telecommunications market and as a leader in 4G and 5G coverage.
TIM’s portfolio of solutions and services combines digital innovation with sustainability, creating synergies that
promote technological development and contain an environmental impact.
For the Consumer segment, TIM offers individuals and families a wide range of fixed and mobile telephone
products and services for communication and entertainment. At the same time, TIM supports small and
medium-sized companies in their digitalization process, offering tailor-made solutions to meet their specific
needs.
In the Business segment, TIM Enterprise acts as a strategic partner for companies and Public Administration,
offering End-to-End solutions in the Cloud, Internet of Things (IoT) and Cybersecurity sectors. These initiatives,
carried out thanks to the largest network of data centers in Italy, enhance the skills of the Group’s companies,
such as Noovle, Olivetti and Telsy, Trust Technology and make use of collaborations with internationally
renowned partners.
In the TIM Group, some companies also have adopted the status of Benefit Corporations, integrating common
benefit objectives in addition to profit into their corporate purpose. In particular:
■
Noovle, which specializes in Cloud and Edge computing solutions and was the first company in the Group
to become a Benefit Corporation in July 2021, with data centers certified to international standards and
built according to the best security and energy efficiency criteria;
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■
Olivetti, focused on IoT and Big Data solutions, which expanded its corporate purpose to become a Benefit
Corporation in January 2023, promoting sustainable Italian digitalization in line with the company’s
historical values;
■
Mindicity, initially part of the fabbricadigitale group, acquired by Olivetti in May 2022, which enabled TIM to
strengthen its portfolio of solutions to support local governments on smart city issues.
TIM is therefore the protagonist in Italy and Brazil of technological innovation that it integrates into its digital
solutions and services to effectively promote the sustainable growth of the economy and society.
The Group also promotes initiatives of great social importance through the TIM Foundation in Italy and
Instituto TIM in Brazil.
The delayering plan completed last July 1 and aimed at moving beyond the vertically integrated operator
model through the sale of fixed network infrastructure assets to Kohlberg Kravis Roberts & Co. L.P. ("KKR")
included the sale of the Wholesale Office, fixed-line access infrastructure assets, and Wholesale business. The
transaction has allowed a greater focus on offering services in the consumer, business and Brazilian market
segments.
[40 a iii]: At year-end 2024, the Group had 26,824 employees, mainly located in Italy (17,458) and Brazil
(9,123)2.
[40 a iv]: The TIM Group does not offer prohibited products and services in the markets in which it operates, in
accordance with applicable regulations.
[40 e,g]: The 2025-2027 Plan, approved by the Board of Directors of the Group outlines an industrial strategy
characterized by a pragmatic approach, aimed at reducing debt, improving profitability and cash flows. At
the same time, the Plan is driven by the desire to implement an important transformation of operating models,
processes and the ecosystem of rules to provide the company with a stronger operational and financial
structure and make it more resilient in the current market consolidation phase.
This context includes the Group’s ESG vision, perfectly integrated into the Plan, aimed at ensuring that the
transformation simultaneously generates a significant, tangible and measurable environmental and social
impact.
The environmental impact represents an opportunity to improve the company’s operational efficiency and to
adopt advanced processes and technologies.This means optimizing energy and resource consumption,
reducing operating costs, meeting increasingly strict regulations and minimizing risks associated with possible
sanctions. In this context, technological innovation not only strengthens the Group’s position on the market,
but also promotes greater resilience and adaptability.
The social impact, in the same way, involves for TIM the obligation to make organizational adjustments that
respond to the main social trends, such as the evolution of working models, attention to internal organization
with a view to overcoming the gender gap and the new needs of consumers. These adjustments make it
possible to strengthen TIM’s competitiveness, attract and retain the best talent and respond proactively to
structural changes in the company.
This approach therefore represents a distinctive and strategic element, capable of promoting operational
efficiency, stimulating innovation and ensuring effective risk management and control. At the same time, it
makes it possible to exploit the opportunities deriving from the adoption of new technologies, the development
of advanced operating models and the response to constantly evolving needs.
The Group's sustainability strategy outlined in the Plan aims to:
■
develop efficient and sustainable infrastructure (5G, fiber, data centers) by obtaining environmental
certifications, strengthening the use of renewable energy, including through self-generating solar energy
plants for data center and network infrastructure elements, the reduction of emissions and resources
through a long-term transition plan that also involves the production chain;
■
ensure cybersecurity and prevent attacks on infrastructure and customer data by increasing the
robustness and quality of control codes for IT solutions, automating test planning activities and detecting
anomalies at the entry points of business systems;
■
addressing the challenges and opportunities related to technological transformation by increasing
investments in ICT, accelerating the adoption of artificial intelligence through the liberalization of licenses
and the customization of solutions for complex processes, and by retraining and hiring talent;
■
create a work environment that values skills and merit, ensuring equity and integrity as key principles for
growth by introducing career development paths, increasing the presence of women and people of color
(in Brazil) in leadership positions, strengthening female recruitment, implementing an equal pay
monitoring system for all new hires starting in 2024.
The circular economy model (reuse/regeneration) permeates across the Group's operational processes to
reduce the Company's environmental impact.
Nine targets were identified in the 25-27 Plan, including six Group targets, two Domestic targets and one
specific target for TIM S.A. These targets are in line with the new industrial set-up and aim for concreteness,
focusing on what has a significant impact for the Group and is actually achievable.
Report on Operations of the
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2 "Italy" includes: TIM S.p.A., TIM Sparkle Italia, Noovle S.p.A., Olivetti S.p.A., Telecontact Center S.p.A, Telsy S.p.A., TIM Retail S.r.l, TI Trust
Technologies, TS Way, QTI S.r.l., Mindicity. TIM S.A. is the only company considered in "Brasil".
Plan 25-27: ESG targets
GROUPS
ITALY
BRAZIL
1.
1 Transition plan includes TIM Brand products with carbon footprint
2.
2 By 2025 3.5%; by 2026 35%: the target refers to Italian and Brazilian women managers and directors
3.
3 By 2025 49%; by 2026 49.5%
4.
4 IoT, Cloud & Security service revenues
5.
5 PEC, SPID, Digital Signature - growth of active services, baseline 2022
100%
green Energy
Scope 2
Carbon
neutral
Scope 1+2
Emissions
Scope 1 + 2 + 3
Leadership position (%women)2
AI Academy, Agile Academy
Hiring (% women)
New
transition plan 1
Scope 3
2025
2030
2030
Gender
equality
+ 1
3
Advanced digital solutions
4
Digital Identity services
5
+30% CAGR23-25
≥90%
50%
Net
Zero
2027
2040
2027
35.5%
7%YoY
Targets
2027
2025
Workforce
upskill in digital
capabilities
[40 f]: In line with decarbonization strategy and Plan's environmental targets, TIM is increasingly attentive to
offering products and services that combine technology and environmental impact, with the aim of directing
customers towards conscious purchases. Here are some examples:
As far as products are concerned, in the Domestic area:
■
a new “TIM HUB Pro” modem model has been introduced for which a carbon footprint is available. In 2024,
51,000 pieces were sold;
■
SIM cards intended for TIM and KENA customers are made from 100% recycled plastic. Flyers made from
FSC-certified paper and 100% recyclable plastic bags are also used;
■
more than 800 reconditioned smartphones were sold;
■
about 77,000 TIM Consumer mobile lines work with e-SIM, or with virtual SIMs that are an alternative to
physical SIMs.
Regarding services, in the Domestic area, TIM:
■
offers the “TIM Re-evaluates Smartphone” service aimed at Consumer customers that allows the return of
the old smartphone receiving a discount on the purchase of a new device. The old device is either
regenerated or disposed of sustainably. More than 5,500 smartphones were recovered in 2024, 80% of
them reconditioned;3
■
offers the “All Risk Assistance” service for Business customers, that provides for the replacement of the
smartphone in the event of a failure or a refund in case of theft or loss. About 22,000 reconditioned
smartphones were given as replacements in 2024, accounting for 77% of the total number of smartphones
replaced;
■
used reconditioned products for replacement activities. More than 33,000 reconditioned modems were
used in 2024, accounting for 33% of the total number of replacements made.
In Brazil, TIM S.A:
■
offers the Smartphone and Smartwatch Trade-in Program service where customers can return their old
devices and get a discount on the purchase of new models. In 2024, around 3,860 smartphones were
collected, of which about 93% were reconditioned;
■
gave over 163,000 reconditioned modems as replacements.
[42a]: In preparing disclosures relating to its business model and value chain, TIM considers:
■
core activities, resources, distribution channels, and customer segments: key activities include the
development and management of communication infrastructures. Resources include mobile and fixed
networks, data centers and international connections. Distribution channels and customer segments
include Consumer, Business, and International segment. For the Consumer segment, TIM offers individuals
and families a wide range of fixed and mobile telephone products and services for communication and
entertainment. In addition, it offers tailor-made solutions for small and medium-sized businesses,
supporting them in their digitalization process. For the Business segment, through TIM Enterprise, the
company offers End-to-End solutions in the Cloud, Internet of Things (IoT) and Cybersecurity sectors to
companies and the Public Administration. These offers make use of the expertise of the Group’s companies
such as Noovle, Olivetti, Telsy, Trust Technology and collaborations with important international partners.
For the International segment, Sparkle operates one of the world's most extensive fiber networks offering
high-quality data, voice and video services. In Brazil, TIM S.A. represents one of the major players in the
telecommunications market and a leader in 4G and 5G coverage.
■
the main business relationships with customers and suppliers;
■
the cost structure and revenues of the business sectors that comply with the disclosure requirements in
the financial statements set out in IFRS 8, where applicable (refer to the “Financial and operating highlights
of the business units of the TIM Group” in this Report on Operations);
■
the impacts, risks and potential opportunities in the areas significant to the enterprise and the possible
relationships with the business model or value chain (refer to table[48 ci,ii] "Material Impacts: scope of
incidence and connection with strategy and business model”).
TIM’s business model pursues the creation of value by transforming inputs into results through a series of
activities and projects. The inputs are represented by the following types of resources and key activities needed
to create and distribute value. To create value and achieve business objectives, TIM makes use of various forms
of capital:
■
Share capital (owned);
■
Financial capital;
■
Physical-structural capital;
■
Intellectual capital;
■
Human capital;
■
Social-relational capital.
Human capital, social-relational capital and intellectual capital are intangible resources essential for the value
creation process.
Report on Operations of the
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Strategy
140
3 Numbers provided by Assurant, TimFin’s partner in trading services
Human capital is a strategic element for TIM and is embodied in intangible resources such as talent,
specialized, and managerial skills, as well as the health and safety protection of TIM employees (refer to the
information in standard S1 “Own Workforce”).
Social-relational capital translates into dialogue with entities and institutions, labor relations, and stakeholder
involvement that helps to strengthen corporate trust and reputation (see disclosure requirement SBM-2
“Interests and Opinions of Stakeholders”).
Intellectual capital includes intellectual property rights, such as patents and trademarks, as well as the
technological know-how that allows the company to innovate and maintain a leadership position in the
telecommunications sector. At the end of 2024, TIM has a portfolio that includes more than 2,350 patent
applications and granted patents; the latter, granted by the European Patent Office and by the national patent
offices of 14 countries, represent more than 90% of the total (refer to the “Innovation Research and
Development” paragraph of the Report on Operations).
The knowledge and data necessary to make strategic and operational decisions are represented by:
•
market data, such as analysis of demand, competition and industry trends;
•
customer feedback such as requests, suggestions and opinions;
•
legislative requirements and industry standards;
•
internal reports on business performance/operational KPIs.
[42 b]: The products and results of the business model represent what the company markets (output) and the
objectives achieved (outcomes). These reflect the value generated for customers, the company and all its
stakeholders.
Benefits for TIM
■
financial benefits: revenues, EBIT, cost reduction, process optimization;
■
innovation: development of new business models;
■
brand reputation.
Benefits for stakeholders
■
customer satisfaction: customer experience, loyalty, response to needs;
■
benefits in terms of social impact: improvement of quality of life, improvement of social inclusion and
reduction of inequalities, development of talents and specialized skills, health and safety of workers;
■
benefits in terms of environmental impact: reduction of emissions, use of renewable energy and promotion
of circular economy models;
■
relational benefits: development of partnerships and collaborations.
[42 c]: The TIM Group maintains important relationships with various suppliers of hardware, software and
services which it uses for the operation of its network and systems and for customer assistance. In addition, it
relies on suppliers for network equipment, mobile devices (smartphones, tablets, mobile phones) and fixed
devices (modems, Set Top Boxes, FWA) intended for marketing on the Consumer and Business markets, as
well as for software licenses and for the implementation of fixed and mobile telecommunications networks. In
addition, TIM makes use in part of the networks of other operators and networks such as Fastweb, Open Fiber,
A2A.
With the sale of NetCo, FiberCop has become the exclusive wholesale supplier of ADSL and FTTC connectivity,
the leading provider of FTTH connectivity in Italy and the TIM Group’s largest supplier also for modem
installation and maintenance services for its customers.
The TIM Group also hires a number of subcontractors for the maintenance of its network and the management
of its call centers.
Finally, the TIM Group has signed multi-year contracts for hospitality and the management of its network
equipment for the distribution of television content.
[42 c]: TIM’s value chain, upstream and downstream
Upstream value chain
TIM Group
Downstream value chain
Single provider of wholesale network services
Households, Small and medium-sized enterprises
Other operators and networks implemented by some local
governments
Large Companies and Public Administration
Hardware Suppliers
Other fixed and mobile telecommunications operators
SW License Providers
Sales network (Dealers, stores,etc)
Specialist services in the field of software
Companies for the implementation of subscriber facilities
Integrated ICT solutions (HW and SW)
Companies for the implementation of subscriber facilities
Mobile terminal suppliers
Logistics companies for apparatus distribution
Subcontractors for network maintenance
Partnerships
Call center management subcontractors
Subcontractors for installation and maintenance of
terminals set up at customers' homes
Logistics services
Facility management services
Report on Operations of the
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Strategy
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Disclosure Requirement SBM-2 – Interests and views of stakeholders
[45 a i, ii]: In conducting its activities, the TIM Group takes into account the expectations and opinions of its
stakeholders, in the belief that strong and satisfactory relationships are the only way to guarantee long-term
value. Stakeholder engagement policies and strategies cover both direct activities and the value chain and are
managed by the Corporate Communication & Sustainability Department, under the supervision of the
Sustainability Committee of the Board of Directors.
The process of identifying stakeholders is based on the analysis of business processes, on the identification of
all stakeholders, including vulnerable groups, on the grouping of stakeholders into homogeneous categories
and on the identification of priority groups within each category.
The TIM Group’s stakeholders are classified into eight categories: TIM people (includes trade unions);
Customers; Suppliers; Business Community (includes peers, over the top, industry associations); Bodies and
institutions (includes public administrations, national and international institutions); Financial community
(includes shareholders and banks), Civil Society (includes consumer associations) and Media (includes opinion
makers).
For each group of stakeholders, the most appropriate engagement tools are identified, which include one-to-
one meetings, one-to-many meetings, information sessions, joint projects, surveys and focus groups.
[45 a ii, iv]: Main channels of engagement of the Group’s stakeholders
Stakeholders
Main Engagement Channels
TIM people (includes trade unions)
• Approximately 11 million visits to the intranet platform in 2024
• Approximately 25 million intranet page views in 2024
• 870 thousand approx. news views on the intranet in 2024
• 267 news stories made with 2,265 comments in 2024
Customers
• Listening plan with about 3.2 million interviews in Italy
• Instant messaging conversations
• Caring conversations on Facebook and Twitter
• Reports in the MyTIM private area of theTIM.co.uk website
Suppliers
• 217 qualified suppliers of which more than 18% were assessed on socio-
environmental issues
• 11 on-site audits done by TIM under JAC (Joint Alliance for Corporate Social
Responsibility)
Business Community (includes peers, over
the top, industry associations)
• Intraoperational working tables in trade associations (ASSTEL and Anitec-
Assinform) and in the Confindustria Digitale Federation
• Collaboration at Connect Europe (association of European telco operators)
and Uni Europa ICT (association of the European ICT union)
• Participation in conferences/events in Italy
• Active member GSMA Foundation
Bodies and institutions (includes public
administrations, national and international
institutions)
• Participation in working tables on industrial policies, labor, and simplification
with relevant ministries and government departments
• Participation in Meetings/Working Groups of the European Commission
Financial community (includes shareholders
and banks)
• Quarterly financial reports
• Quarterly presentations/webinars
• Participation in the compilation of questionnaires and surveys of major ESG
rating agencies
• Individual calls with leading industry analysts
Civil society (includes consumer
associations)
• Active participation in the Consumers' Forum
• Regular meetings with Consumer Associations participating in the
Memorandum of Understanding
• Collaboration with IDMO (Italian Digital Media Observatory), the European
Union's Italian observatory for countering disinformation and disseminating
best practices in the use of digital media
• Collaborations with OPGE (Permanent Youth-Education Observatory)
organization that invests in young people to foster training and education for
citizenship, e.g., "Technology - Digital literacy" program
Media (including opinion makers)
Approx. 240 Press releases in Italy and Brazil
Report on Operations of the
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Strategy
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[45 a iii, iv,v]: The process of stakeholder engagement in TIM4 includes different phases and activities.
1.
Integration into Governance and Strategies: stakeholder engagement is integrated into TIM’s
governance, strategies, and operations.
2.
Identification of Stakeholders:
•
analysis of business processes;
•
identification of stakeholders for each process;
•
grouping of parts into homogeneous categories;
•
identification of priority groups within each category.
3.
Planning and Preparation:
•
identification of the purpose, scope, ownership, mandate and stakeholders;
•
stakeholder profiling;
•
definition of levels and methods of engagement;
•
definition and communication of disclosure limits;
•
preparation of an engagement plan;
•
choice of indicators to measure engagement activities;
•
provision of adequate resources and capacity;
•
identifying and mitigating engagement risks.
4.
Engagement Tools:
•
one-to-one and one-to-many meetings;
•
information sessions, joint projects, surveys, focus groups, etc.
5.
Implementation:
•
invitations, information and briefings from stakeholders;
•
careful listening to stakeholders during engagement;
•
documentation of engagement;
•
development of action plans;
•
communication of engagement.
6.
Control and Evaluation:
•
monitoring and assessment of the level of engagement;
•
commitment to improving engagement activities;
•
examination of the results of the engagement action plans;
•
drawing up of engagement reports;
7.
Feedback and Rating:
•
collection of feedback from stakeholders;
•
assessment of risks and opportunities;
•
identifying gaps and the effort required to implement solutions.
8.
Reports and Impact Assessments:
•
accounting for involvement activities in Sustainability Reporting;
•
feedback sessions with the stakeholders involved;
•
report to Top Management on selected topics.
9.
Communication and Complaints:
•
providing clear communication channels for feedback and complaints;
•
complaint mechanisms available to communities.
TIM engages and listens to its stakeholders to improve operational efficiency, act ethically and sustainably, and
to ensure that solutions and projects are aligned with their expectations and needs. The feedback received is
used in a variety of ways.
As part of the double materiality analysis, for example, the stakeholders’ expressed assessment of the impacts
of TIM activities toward the environment and people was used to identify the Company’s material IROs.
Report on Operations of the
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Strategy
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4 Stakeholder engagement in TIM is organized through a structured and systematic process that follows the guidelines of the AccountAbility 1000
standards (AA1000APS and AA1000SES)
The growing attention to issues such as environmental protection and gender equality has also stimulated TIM
to strengthen the implementation of initiatives that lead in these directions. On the environmental side, for
example, TIM has implemented initiatives that promote the regeneration and reuse of products and/or
materials and is gradually introducing the carbon footprint of TIM brand products.
In the social sphere, sensitivity to the issue of gender equality and the active involvement of workers through
surveys and interviews has led TIM to strengthen its commitment to diversity inclusion and empowerment.
Among the various initiatives, TIM has signed the “Code of Self-Discipline for Responsible Companies in favor of
Motherhood”, promoted by the Minister for Family, Birth and Equal Opportunities, and has doubled the
mandatory paternity leave from 10 to 20 days to promote shared parenting. In addition, the Group shapes its
relationships with its suppliers on the basis of respect for human rights and health and safety regulations and
their involvement for sustainable development of their performance.
In the end, the feedback collected through the results of the “Customer Satisfaction Index” is used to monitor
how customer satisfaction changes in response to the development of new offerings or projects and initiatives
that have been started.
For detail with respect to the manner and process of engaging specific categories of stakeholders, please refer
to the SBM-2 disclosure requirements "Interests and Views of Stakeholders" found in the topic chapters.
[45 b],[45 c,i,ii,iii]: The TIM Group's business model and strategy effectively takes into account the interests
and opinions of relevant stakeholders, confirming the importance of ensuring a constant and structured
dialogue capable of fostering a climate of cooperation and trust between the company and its stakeholders.
As part of the double materiality process TIM engaged stakeholders to assess the extent of potentially material
impacts, risks and opportunities (IROs). External stakeholders' assessment of the impacts the company
produces toward the environment and society was mediated with management's assessments to identify the
list of material IROs for TIM.
The results that emerged from the double materiality analysis were used to direct corporate strategy, and in
this sense, the evaluations expressed by stakeholders are in line with the action directions in the 2025-27 Plan.
In addition, concerns or specific needs of stakeholders are collected through institutional reporting channels. At
present, there are no specific remedial measures in place or being planned.
[45 d]: The main activities and commitments of the TIM Group, including those involving stakeholders, are
regularly presented to the Sustainability Committee, a direct expression of the Board of Directors.
With regard to sustainability issues, the outcome of the double materiality analysis process was presented at a
joint session with the Control and Risk Committee, the Sustainability Committee and the Board of Statutory
Auditors by the Corporate Communication & Sustainability function on October 11, 2024. The outcome was
then presented to the Board of Directors on December 11, 2024.
Disclosure Requirement SBM-3 - Material impacts, risks and opportunities and their
interaction with strategy and business model
[48 a], [48 c iii,iv],[48h]: The double materiality analysis conducted by the TIM Group in 2024 showed 46
material IROs divided into: 13 negative impacts, 10 positive impacts, 15 risks and 8 opportunities. In view of
the coverage of the topics covered, the 46 IROs have been traced back to 7 ESRS topics.
Below is the list of material impacts, risks, and opportunities (IROs), with the following details:
•
order of materiality of IROs: inferred from the evaluations of internal and external stakeholders;
•
description of the IRO;
•
type of IRO: impact, risk, or opportunity;
•
for impacts, it is indicated whether the effect that TIM has on the environment and on people,
including human rights, is actual or potential;
•
ESRS topic and sub-topic of reference to which the IRO is traced back for reporting purposes;
•
scope of application: indicates the point in the value chain where the impact, risk, or opportunity falls. If
the IRO is linked to the typical activities of TIM’s business, we speak of “own activities”; if the IRO is
linked to the supply chain, we speak of “upstream activity”; if the IRO is linked to customers, we speak
of “downstream activity”;
•
time horizon: refers to the time frame within which the effect of the IRO manifests itself. In line with
what is defined by the Enterprise Risk Management function in the modelling of operational risks, we
speak of the short term (within one year); medium-term (within three years, coinciding with the
horizon of the business plan) and long-term (over three years).
Report on Operations of the
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[48 a], [48 c iii,iv]: List of material IROs
Ordine di
rilevanza
Descrizione IRO
Tipologia
IRO
Impatti
effettivi/
potenziali
Tema ESRS
Sotto-tema
ESRS
Perimetro di
applicazione
Orizzonte
temporale
1
Potential non-compliance
with anti-bribery regulations
in the conduct of business
increases the likelihood of
legal liability and financial
sanctions, as well as
reputational damage
Risk
ESRS G1 -
Business
conduct
G1
Active and
passive
corruption
Own activities
Short -
Medium -
Long
2
Strong ethical practices and
transparent codes of
conduct can improve brand
reputation, attract ethical
investors, and improve
customer relationships
Opportunity
ESRS G1 -
Business
conduct
G1 Corporate
culture,
G1 Supplier
relationship
management,
including
payment
practices
Own activities
Short -
Medium -
Long
3
The engagement of
employees results in greater
leadership capacity and
professional development,
improving job satisfaction
Positive
impact
Actual
ESRS S1 - Own
Workforce
S1 Equal
treatment and
opportunity for
all
Own activities
Short -
Medium -
Long
4
Potential cybersecurity
threats may involve the leak
of sensitive customer and/or
employee data
Negative
impact
Actual
ESRS S1 - Own
labor force,
ESRS S4 -
Consumers
and end users
S1 Other work-
related rights,
S4 Information-
related impacts
for consumers
and/or end-
users
Own activities
Short
5
Cyber attacks and sabotage
to physical infrastructure
can cause an interruption in
the operational continuity of
services, causing a
deterioration in economic
and financial performance
and reputational damage
Risk
ESRS S4 -
Consumers
and End Users
S4 Information-
related impacts
for consumers
and/or end-
users, S4 Social
inclusion of
consumers and/
or end-users
Own activities
Short -
Medium -
Long
6
A flexible organizational
environment that promotes
the well-being of employees
and their families can
generate benefits in terms
of work-life balance
Positive
impact
Actual
ESRS S1 - Own
Workforce
S1 Working
conditions
Own activities
Short -
Medium -
Long
7
Insufficient safety measures,
lack of training and
inadequate protective
equipment can cause
accidents at work, injuries
and damage to the health
of employees and workers in
the supply chain
Negative
impact
Actual
ESRS S1 - Own
Workforce,
ESRS S2 -
Workers in the
value chain
S1 Working
conditions,
S2 Working
conditions
Own activities,
upstream,
downstream
Short -
Medium -
Long
8
Involving stakeholders in
strategic initiatives helps
create long-term value for
customers and the supply
chain
Positive
impact
Actual
ESRS G1 -
Business
conduct
G1 Corporate
culture
Own activities,
upstream
Short -
Medium -
Long
9
Training and reskilling
programs on the subject of
digital transformation
generate new skills to
support the professionals of
the future
Positive
impact
Actual
ESRS S1 - Own
Workforce
S1 Equal
treatment and
opportunity for
all
Own activities
Short -
Medium
10
Personalized and
transparent offerings and
seamless connectivity
improve the customer
experience, encouraging
customer loyalty with
consequences on the
company’s economic and
financial flows
Opportunity
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities,
upstream,
downstream
Short -
Medium -
Long
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11
Human rights violations
within the company and
along the supply chain may
result in legal liability and
consequent reputational
damage
Risk
ESRS S1 - Own
Workforce,
ESRS S2 -
Workers in the
value chain
S1 Other work-
related rights,
S1 Working
conditions,
S1 Equal
treatment and
opportunities
for all,
S2 Other work-
related rights,
S2 Working
conditions
Own activities,
upstream,
downstream
Short -
Medium -
Long
12
Artificial intelligence and
digital technologies allow
better management of
projects with a significant
impact on the environment,
such as the monitoring of
environmental parameters
(e.g. smart cities, smart
agriculture) and the
management of early
warning systems
Positive
impact
Actual
ESRS E1 -
Climate
Change
E1 Adaptation
to climate
change,
E1 Climate
Change
Mitigation
Own activities,
upstream
Short -
Medium -
Long
13
The construction and use of
infrastructures (e.g. data
centres) requires a high
consumption of energy that
can increase emissions with
consequences on climate
change
Negative
impact
Actual
ESRS E1 -
Climate
Change
E1 Energy,
E1 Climate
Change
Mitigation
Own activities,
upstream
Short -
Medium -
Long
14
The adoption of digital
technologies in business
processes can improve the
quality of service to
customers and the ability to
manage unexpected events
that may interfere with the
continuity of the service
Positive
impact
Actual
ESRS S4 -
Consumers
and End Users
S4 Information-
related impacts
for consumers
and/or end-
users, S4 Social
inclusion of
consumers and/
or end-users
Own activities
Short -
Medium -
Long
15
An inadequate incentive
system can affect employee
satisfaction
Negative
impact
Actual
ESRS S1 - Own
Workforce
S1 Working
conditions
Own activities
Short -
Medium
16
Inadequate development,
inclusion, and work-life
balance initiatives can affect
employee satisfaction
Negative
impact
Actual
ESRS S1 - Own
Workforce
S1 Working
conditions,
S1 Equal
treatment and
opportunities
for all
Own activities
Short -
Medium
17
Unauthorized access to the
personal data of customers
or employees can result in
legal liability, regulatory
sanctions, economic and
financial damage and
reputational damage
Risk
ESRS S1 - Own
labor force,
ESRS S4 -
Consumers
and end users
S1 Other work-
related rights,
S4 Information-
related impacts
for consumers
and/or end-
users
Own activities
Short -
Medium -
Long
18
Incentive mechanisms that
encourage employees to
adopt sustainable practices
promote a culture of
responsibility towards
environmental and social
impact.
Positive
impact
Actual
ESRS G1 -
Conduct of
enterprises,
ESRS S1 - Own
Workforce
G1 Corporate
culture,
S1 Working
conditions
Own activities
Short -
Medium -
Long
19
Risks related to online
security, such as cybercrime,
cyberbullying and
inappropriate content can
result in legal liability,
economic and financial
losses and damage to
reputation
Risk
ESRS S4 -
Consumers
and End Users
S4 Personal
safety of
consumers and/
or end users
Own activities
Short -
Medium -
Long
20
The expansion in the
offering of technologies and
digital access (for example,
PEC, digital signature, SPID)
can lead to more inclusive
connectivity for consumers
Positive
impact
Actual
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities,
upstream,
downstream
Short -
Medium -
Long
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21
The use of fossil energy
sources helps to increase
emissions with
consequences on climate
change
Negative
impact
Actual
ESRS E1 -
Climate
Change
E1 Energy
Own activities,
upstream,
downstream
Short -
Medium -
Long
22
A working environment that
does not provide employees
with the “right to
disconnect” results in
increased work stress and
burnout, with consequences
on employee well-being
Negative
impact
Actual
ESRS S1 - Own
Workforce
S1 Working
conditions
Own activities
Short -
Medium
23
Connectivity solutions that
use digital technologies such
as IoT, Big Data and AI
ensure better data traffic
planning for the benefit of
customers
Positive
impact
Actual
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities,
upstream
Short -
Medium -
Long
24
The absence of equal pay at
executive, managerial and
employee levels may require
corrective action to
encourage the attraction of
talent
Negative
impact
Actual
ESRS S1 - Own
Workforce
S1 Equal
treatment and
opportunity for
all
Own activities
Short -
Medium -
Long
25
The greater computing and
data processing power
required by the use of AI and
digital technologies in
business processes can
increase energy
consumption and the
carbon footprint of the
company or supply chain,
affecting climate change
Negative
impact
Actual
ESRS E1 -
Climate
Change
E1 Energy
Own activities,
upstream
Medium -
Long
26
Voluntary compliance with
the Revenue Agency can
bring benefits in terms of
reputation and operational
management
Opportunity
ESRS G1 -
Business
conduct
G1 Corporate
culture
Own activities,
upstream
Short -
Medium -
Long
27
The investments in
infrastructure and the
purchase of energy
necessary for 5G, fibre optics
and the cloud can affect
climate change
Negative
impact
Actual
ESRS E1 -
Climate
Change
E1 Energy,
E1 Climate
Change
Mitigation
Own activities,
upstream
Short -
Medium -
Long
28
Projects that promote social
inclusion, including through
cultural and artistic
programs, can help spread
awareness in the
community and in the new
generations
Positive
impact
Actual
ESRS S3 -
Communities
Affected
S3 Economic,
social and
cultural rights
of communities
Own activities
Short -
Medium -
Long
29
The acceleration of fiber roll-
out and 5G can promote
digital transformation and
the enablement of new
services and applications,
contributing to greater
customer satisfaction and
the consolidation of market
leadership
Opportunity
ESRS S4 -
Consumers
and End Users
S4 Information-
related impacts
for consumers
and/or end-
users, S4 Social
inclusion of
consumers and/
or end-users
Own activities,
downstream
Short -
Medium -
Long
30
The development of new
business models that use
advanced digital
technologies (e.g. 5G, AI)
can improve the company’s
operational efficiency, with
consequences on economic-
financial flows and benefits
for consumers.
Opportunity
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities
Short -
Medium -
Long
31
The inability to effectively
involve suppliers in the
reduction of emissions can
cause the failure to achieve
the climate objectives, with
an impact on economic and
financial results as well as
reputational damage.
Risk
ESRS E1 -
Climate
Change,
ESRS G1 -
Business
Conduct
E1 Climate
change
mitigation,
G1 Supplier
relationship
management,
including
payment
practices
Upstream,
downstream
activities
Long
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32
Digital illiteracy widens
socioeconomic gaps and
does not allow full
participation of customers in
the economy
Negative
impact
Actual
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities
Short
33
Gender inequalities in terms
of pay and positions of
responsibility and non-
transparent career paths
can have consequences on
the attraction and retention
of talent
Risk
ESRS S1 - Own
Workforce
S1 Equal
treatment and
opportunity for
all
Own activities
Short -
Medium -
Long
34
The inability of the company
or supply chain to conduct a
responsible business, which
responds to ethical social
demands and transparent
business practices, may limit
competition and consumers’
informed choices
Negative
impact
Potential
ESRS G1 -
Business
Conduct,
ESRS S4 -
Consumers
and End Users
G1 Corporate
culture,
S4 Social
inclusion of
consumers and/
or end users
Own activities,
upstream
Short -
Medium -
Long
35
Flexible and hybrid working
models can improve
employee productivity and
well-being, while reducing
operating costs
Opportunity
ESRS S1 - Own
Workforce
S1 Working
conditions
Own activities
Short -
Medium -
Long
36
The enhancement of
employer branding,
professional refresher
programs and talent
management strategies can
help attract and maintain a
highly qualified and
diversified workforce
Opportunity
ESRS S1 - Own
Workforce
S1 Equal
treatment and
opportunity for
all
Own activities
Short -
Medium -
Long
37
The spread of pandemics or
the occurrence of
geopolitical conflicts can
lead to potential shortages
in the supply of goods and
services and price increases,
with consequences on the
continuity of business
activities and on the
company’s economic-
financial flows
Risk
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities,
upstream
Medium -
Long
38
The definition of attainable
performance objectives for
employees promotes
company productivity
Opportunity
ESRS S1 - Own
Workforce
S1 Working
conditions
Own activities
Medium -
Long
39
Extreme weather events
due to climate change can
create discontinuity in
business activities, damage
infrastructure and
consequently affect the
company's economic and
financial flows
Risk
ESRS E1 -
Climate
Change
E1 Adaptation
to climate
change
Own activities,
upstream,
downstream
Medium -
Long
40
The lack of technological
transformation of legacy
infrastructures and
platforms can reduce the
quality of service offered to
customers and increase the
vulnerability of systems,
with consequences on
business reputation
Risk
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities
Short -
Medium -
Long
41
Failure to achieve coverage
objectives may limit the
offering of high-speed
connectivity, with
consequences on the
customer experience and on
economic-financial flows
Risk
ESRS S4 -
Consumers
and End Users
S4 Information-
related impacts
for consumers
and/or end-
users, S4 Social
inclusion of
consumers and/
or end-users
Own activities,
downstream
Short -
Medium -
Long
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42
The incorrect management
of waste by TIM (e.g.
electronic waste) and its
supply chain (e.g. network
components) can contribute
to environmental pollution
and affect the transition to
the circular economy
Negative
impact
Potential
ESRS E5 -
Resource use
and circular
economy
E5 Resource
outflows
related to
products and
services,
E5 Waste
Own activities,
upstream
Short -
Medium -
Long
43
Regulatory changes to
energy and environmental
policies may affect the
profitability of energy
efficiency actions and the
use of renewable sources,
with a possible increase in
compliance costs
Risk
ESRS E1 -
Climate
Change
E1 Energy
Own activities
Short -
Medium -
Long
44
Failure to implement digital
inclusion actions aimed at
the accessibility and
continuity of the services
offered may result in
customer dissatisfaction,
potential sanctions and
economic and financial
losses
Risk
ESRS S4 -
Consumers
and End Users
S4 Information-
related impacts
for consumers
and/or end-
users, S4 Social
inclusion of
consumers and/
or end-users
Own activities
Short -
Medium -
Long
45
Potential legal liabilities and
financial sanctions deriving
from antitrust investigations
(e.g. incorrect business
practices) can damage
corporate reputation, with
consequences on the
company’s economic and
financial flows
Risk
ESRS S4 -
Consumers
and End Users
S4 Social
inclusion of
consumers and/
or end users
Own activities
Short -
Medium -
Long
46
Failure to adapt to
regulatory developments in
the use of generative AI can
cause reputational damage
and sanctions and can harm
the economic sustainability
of the company
Risk
ESRS G1 -
Business
conduct
G1 Corporate
culture
Own activities
Medium -
Long
[48 c i, ii]: The following table shows the positive and negative, actual or potential impacts of TIM activities on
people and the environment, which emerged as significant in the double materiality analysis. Specifically, it
indicates the connection between each impact and the business strategy and business model is indicated to
show how the company operates on a daily basis to achieve the designated goals.
[48 c i,ii]: List of material impacts: scope of incidence and connection with strategy and business model
Size
Description of Impact
Type of
Impact
Actual/
Potential
Impact
Scope of
incident
(Environmen
t/People)
Linking impact to
enterprise strategy or
model
E
Artificial intelligence and digital technologies allow
better management of projects with a significant
impact on the environment, such as the monitoring of
environmental parameters (e.g. smart cities, smart
agriculture) and the management of early warning
systems
Positive
impact
Actual
Environment
Strategy/Business
Model
Technology
Transformation
E
The construction and use of infrastructures (e.g. data
centres) requires a high consumption of energy that
can increase emissions with consequences on climate
change
Negative
impact
Actual
Environment
Strategy/Business
Model Efficient and
sustainable
infrastructure
E
The use of fossil energy sources helps to increase
emissions with consequences on climate change
Negative
impact
Actual
Environment
Strategy/Business
Model
Efficient and
sustainable
infrastructure
E
The greater computing and data processing power
required by the use of AI and digital technologies in
business processes can increase energy consumption
and the carbon footprint of the company or supply
chain, affecting climate change
Negative
impact
Actual
Environment
Strategy/Business
Model
technological
transformation
E
The investments in infrastructure and the purchase of
energy necessary for 5G, fibre optics and the cloud can
affect climate change
Negative
impact
Actual
Environment
Strategy/Business
Model Efficient and
sustainable
infrastructure
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E
The incorrect management of waste by TIM (e.g.
electronic waste) and its supply chain (e.g. network
components) can contribute to environmental
pollution and affect the transition to the circular
economy
Negative
impact
Potential
Environment
Business Model
Circular waste and
resource management
S
The engagement of employees results in greater
leadership capacity and professional development,
improving job satisfaction
Positive
impact
Actual
People
Strategy/Business
Model Human capital
development
S
Potential cybersecurity threats may involve the leak of
sensitive customer and/or employee data
Negative
impact
Actual
People
Strategy/Business
Model Cybersecurity
S
A flexible organizational environment that promotes
the well-being of employees and their families can
generate benefits in terms of work-life balance
Positive
impact
Actual
People
Strategy/Business
Model
Well-being in the
workplace
S
Insufficient safety measures, lack of training and
inadequate protective equipment can cause accidents
at work, injuries and damage to the health of
employees and workers in the supply chain
Negative
impact
Actual
People
Strategy/Business
Model
Well-being in the
workplace
S
Training and reskilling programs on the subject of
digital transformation generate new skills to support
the professionals of the future
Positive
impact
Actual
People
Strategy/Business
Model Human capital
development
S
The adoption of digital technologies in business
processes can improve the quality of service to
customers and the ability to manage unexpected
events that may interfere with the continuity of the
service
Positive
impact
Actual
People
Strategy/Business
Model
Technological
transformation
S
An inadequate incentive system can affect employee
satisfaction
Negative
impact
Actual
People
Strategy/Business
Model Human capital
development
S
Inadequate development, inclusion, and work-life
balance initiatives can affect employee satisfaction
Negative
impact
Actual
People
Strategy/Business
Model Human capital
development
S
Incentive mechanisms that encourage employees to
adopt sustainable practices promote a culture of
responsibility towards environmental and social
impact.
Positive
impact
Actual
People
Strategy/Business
Model Human capital
development
S
The expansion in the offering of technologies and
digital access (for example, PEC, digital signature,
SPID) can lead to more inclusive connectivity for
consumers
Positive
impact
Actual
People
Strategy/Business
Model
Technological
transformation
S
A working environment that does not provide
employees with the “right to disconnect” results in
increased work stress and burnout, with consequences
on employee well-being
Negative
impact
Actual
People
Strategy/Business
Model
Well-being in the
workplace
S
Connectivity solutions that use digital technologies
such as IoT, Big Data and AI ensure better data traffic
planning for the benefit of customers
Positive
impact
Actual
People
Strategy/Business
Model
Technological
transformation
S
The absence of equal pay at executive, managerial
and employee levels may require corrective action to
encourage the attraction of talent
Negative
impact
Actual
People
Strategy/Business
Model Human capital
development
S
Projects that promote social inclusion, including
through cultural and artistic programs, can help
spread awareness in the community and in the new
generations
Positive
impact
Actual
People
Strategy/Business
Model Technological
Transformation
S
Digital illiteracy widens socio-economic gaps and does
not allow full customer participation in the economy
Negative
impact
Actual
People
Strategy/Business
Model Technological
Transformation
G
Involving stakeholders in strategic initiatives helps
create long-term value for customers and the supply
chain
Positive
impact
Actual
People
Strategy/Business
Model Business
Conduct
G
The inability of the company or supply chain to
conduct a responsible business, which responds to
ethical social demands and transparent business
practices, may limit competition and consumers’
informed choices
Negative
impact
Potential
People
Strategy/Business
Model Business
Conduct
[48 b], [48 d]: The double materiality analysis identified risks and opportunities that could affect the Group’s
economic and financial results and competitive position (financial materiality) and the Group’s impacts on the
environment, society and other stakeholders, regardless of financial implications (impact materiality).
The impacts, risks, and opportunities identified were the basis for identifying the material issues to be included
in the 2024 Sustainability Report.
The assessment of ESG risks, impacts and opportunities has also helped to define the four pillars of the ESG
strategy of the 2025-27 Plan:
■
Develop efficient and sustainable infrastructure (5G, fiber, data center);
■
Ensure cybersecurity and prevent attacks on customer infrastructure and data;
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■
Addressing the challenges and opportunities related to technological transformation;
■
Create a work environment that values skills and merit, ensuring fairness and integrity.
With regard to the possible current financial effects of significant risks and opportunities, the following should
be noted.
Environment
■
Extreme weather events caused by climate change can interrupt business activities and damage
infrastructure, affecting economic-financial flows. To mitigate possible risks from these extreme events:
•
In Italy, the Group took out an All Property policy for 6.2 million euros. In 2024, there were no extreme
weather events that resulted in significant economic losses beyond the deductible threshold under the
insurance coverage;
•
In Brazil, TIM S.A. has insurance contracts that cover operational risks, civil liability and IT risks. The
policies cover damage to infrastructure resulting from extreme weather events such as earthquakes,
tsunamis, floods, storms, hurricanes, cyclones, tornadoes, hail, smoke, and landslides and provide
compensation limits for a total of R$800 million (800 million reais). In 2024, a catastrophic climate
event hit Rio Grande do Sul. TIM S.A. responded on four fronts: re-establishing network connections,
supporting customers with roaming and 10GB of bonus data, assisting employees in affected regions,
and donating basic necessities to communities in cooperation with local institutions. The crisis affected
hundreds of cities and millions of people, representing an unprecedented event in Brazil. Restoration
activities, which include reconstruction of telecommunications networks and planning for future similar
events, are being managed by a specially created task force of more than 180 professionals
(employees and suppliers) that will continue to operate on a permanent basis throughout the
reconstruction phase. The cost estimate for the company is not yet available.
Social
■
In the area of privacy, unauthorized access to the personal data of customers or employees can result in
legal liability, regulatory sanctions, economic and financial damage and reputational damage. During
2024, the Data Protection Authority (GDPR) did not carry out any inspection activities at TIM or its Italian
Group Companies, nor did it take any prescriptive or sanctioning measures against them. The Privacy
Protection Authority, on the other hand, initiated proceedings in November 2024, with the possible
adoption of prescriptive measures or sanctions, with reference to inaccuracies in customer contact details.
TIM has sent a defensive statement and is awaiting the Authority’s determinations;
■
In the area of cybersecurity, cyber attacks and sabotage of physical infrastructure can disrupt the business
continuity of services, worsening economic and financial performance and damaging the reputation of the
Company. No security incidents classified as "major" occurred in 2024. There was only one incident with a
medium impact, caused by a DDOS attack (which targets websites and servers by interrupting network
services) characterized by unusually aggressive methods. Specifically, the disruption was related to the
partial inability to reach some business services, including www.tim.it and www.gruppotim.it. The attack
was quickly mitigated with the implementation of appropriate countermeasures to avoid similar episodes
in the future. The public network delivery services were not impacted, as were the internal services, and
there were no data losses or compromise. Finally, there are two other incidents with a low impact, caused
by process or system vulnerabilities; they too have not led to the compromise or loss of data or to
economic impacts;
■
In connection with improper commercial practices in 2024 in Italy, the AGCM (Competition and Market
Authority) did not initiate any proceedings against TIM in this area that produced financial effects during
the year.
■
With regard to consumer protection, AGCOM (the Communications Authority) has not ordered any
proceedings against TIM aimed at ascertaining the violation of sector regulations and which produced
financial effects during the year. In Brazil regarding processes related to consumer rights, TIM S.A. reports
23 cases of non-compliance with significant laws and regulations with 7 non-monetary penalties and 16
fines, totaling R$4.4 million, related to customer services and the blocking of telemarketing calls.
Governance
■
On the subject of business conduct, in 2024, the Group in the Domestic area did not encounter any
significant incidents of non-compliance with applicable laws and regulations. Consequently, there were no
penalty consequences. In Brazil, TIM S.A. faced 87 administrative proceedings in environmental matters in
2024, most of which involve the applicability of state and/or municipal legislation, depending on the
jurisdiction. Of the pending cases, 26 have no monetary penalties and 23 cases have no possible financial
impacts of significant value (less than 500,000 reais). The remaining 38 administrative proceedings were
completed in 2024. With regard to Anatel (the Brazilian Government Telecommunications Agency), there
are two significant ongoing proceedings relating to non-compliance with certain obligations, such as the
quality of the service and the rights and guarantees of users (Procedure for determining non-compliance
with obligations - PADO - with Anatel and Procedure for determining a program item - PADIC). In 2024,
fines of R$1.5 million were paid, including one for the previous years and seven for the period under review.
■
Regarding tax matters, during the reporting period, no significant tax penalties exceeding €100,000 were
paid relating to the Domestic BU.
[48 f]: The TIM Group adopts a resilient strategy and business model, able to face impacts and risks and to
seize opportunities. The assessment of business resilience is carried out already during the definition of the
Strategic Plan, through scenario projections, strategic and competitive analyses, to define strategy and
competitive positioning, identify consistent objectives and actions in the short and medium-long term, and
verify their implementation through performance measurement.
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In addition, the Enterprise Risk Management (ERM) function provides an overall view of the main business risks,
including those related to sustainability issues, and of the evaluation of mitigation actions.
Specifically, with regard to the environmental dimension, ERM monitors and assesses environmental risks
related to climate change, proposing mitigation actions to strengthen the resilience and efficiency of assets
and continue the energy transition process (see disclosure requirement E1 IRO-1 “Description of processes to
identify and assess material climate-related impacts, risks, and opportunities”).
In the social sphere, on the other hand, the Group implements processes in accordance with industry best
practices, allowing the company to identify and manage potential negative impacts deriving from its
operations, the value chain, the products or services offered and from business relationships.
Finally, from the point of view of governance, the Group constantly monitors regulations and its business
conduct, identifying possible corrective actions to address risks and negative impacts generally attributable to
issues related to compliance and business ethics.
[48 g]: In the previous financial year, TIM focused mainly on the effects of the company’s activities externally,
that is, the positive and negative impacts. Compared with what was inferred from the 2024 double materiality
analysis, no significant changes were identified. The risks and opportunities, resulting from the new approach
that has integrated the perspective of financial materiality, are all attributable to issues mapped by business
processes and/or governed by the Risk Management model.
Impact, risk, and opportunity management
Disclosure Requirement IRO-1 - Description of the process to identify and assess
material impacts, risks and opportunities
[53 a]: In line with the regulations of the Corporate Sustainability Reporting Directive (CSRD), the TIM Group
conducted a double materiality analysis to identify material impacts (Impact Materiality) and material risks
and opportunities (Financial Materiality), while also following the indications in Implementation Guidance 1
“Materiality Assessment” published by EFRAG. To identify the list of material IROs, TIM used a dynamic
semantic engine that, based on information extracted from public documents such as regulations, financial,
and sustainability reports, and online news from peers in the “Technology & Telecommunication” sector,
generated an initial list of potentially material positive and negative impacts, risks, and opportunities (IROs).
The list was then subjected to evaluation by internal and external stakeholders and finally to an analysis to
define the significance threshold that led to the identification of material IROs.
The double materiality analysis together with the list of material impacts, risks and opportunities was
presented to the Sustainability Committee and the Audit and Risk Committee on October 11, 2024, and
subsequently, to the Board of Directors on December 11, 2024.
The double materiality analysis activity was carried out involving the main companies in the Group’s
perimeter, including TIM S.p.A, TIM S.A, Noovle, Olivetti and Sparkle. TIM S.A. conducted its own double
materiality analysis, the results of which showed no significant differences from the analysis conducted at the
Group level. Although the degree of detail in the description of IROs varies, the aspects covered are broadly
similar. The distinguishing features of TIM S.A.’s analysis involve the identification of a positive impact
associated with ESRS Theme E4 “Biodiversity and Ecosystems” and a risk associated with ESRS Theme E3
“Water and Marine Resources”, both of which are considered to be non-material at the Group level.
[53 b i, ii]: Potentially material impacts were identified by considering the general and specific dynamics of the
Technology & Telecommunication sector, whether generated directly by the TIM Group or indirectly through
relationships with suppliers and customers. This assessment takes into account the peculiarities of the value
chain in the Italian and Brazilian context and the impacts on people or the environment, both positive and
negative, both current and future, in a short-, medium-, or long-term time horizon. The list of positive and/or
negative impacts submitted for evaluation includes those in which the TIM Group is involved through its
activities or business relationships.
[53 b iii]: Impacts were assessed by administering a survey to external stakeholders and board directors; while
for internal stakeholders, such as C-level and key function/company managers, one-on-one interviews were
held.
Regarding external stakeholders, a significant sample was selected for each of the categories surveyed
covering: TIM’s people; Customers; Media; industry Business Community; Institutions and regulatory bodies;
Suppliers; Civil Society; the Financial Community. Overall, a sample of about 11,000 stakeholders was
involved with a redemption of about 37%.
[53 b iv]: Material impacts were identified by rating their importance on a scale of 1 to 5, considering factors
such as severity (average of magnitude, extent and irretrievable nature) and likelihood (for potential impacts)
for negative impacts. For positive impacts, the assessment was made on a scale of 1 to 5 for magnitude,
extent, and likelihood. The total score for each impact can range from 1 to 25, based on the product of the
factors mentioned. Impacts considered material exceeded the threshold of 12.
[53 c i, ii]: Like the impacts, risks and opportunities were also identified through the semantic platform’s
extraction of data from documentary sources related to peers and actors in the TIM Group value chain, both
upstream and downstream.
From this extraction, a list of potentially material risks and opportunities was then created and shared with
the ERM function, which is responsible for risk management in the company. Next, the list was evaluated by
internal stakeholders, who assigned a score from 1 to 5 to each risk and opportunity in terms of likelihood and
impact. The materiality of each risk and opportunity was determined based on the product of these two
drivers, selecting those with a score above 12. Finally, the assessment of risks and opportunities and the
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related possible economic and financial impacts on Plan objectives was carried out by ERM according to the
adopted risk management methodology.
[53 c iii]: The TIM Group attaches strategic priority to risks related to sustainability, integrating them into
overall risk management processes. These risks are evaluated through the double materiality analysis process
that takes into account the viewpoint of stakeholders and the actual or potential impact on business
performance. In addition, TIM uses advanced quantitative and qualitative analysis tools, such as probabilistic
models and scenario analysis, such as environmental risks, in line with best market practices and international
standards (including TCFD). These tools make it possible to assess the urgency and impact of sustainability
risks compared to other risk categories, ensuring integrated and proactive management. Based on the
outcome of the assessment of the various risks, the company implements prioritized mitigation actions
according to their riskiness.
[53 d]: The TIM Group’s decision-making process is based on structured governance involving the Board of
Directors, the appropriate committees (such as the Control and Risk Committee and the Sustainability
Committee) and the company’s operational functions.
With regard to the double materiality activity, in addition to the involvement of various stakeholders, the list of
impacts, risks, and opportunities was presented to the Sustainability Committee, the Audit and Risk
Committee, and then to the Board of Directors. In reference to internal control procedures, please refer to the
section on GOV-5 disclosure requirement “Risk management and internal controls over sustainability
reporting”.
[53 e]: The process of identifying, assessing and managing sustainability-related risks is integrated into TIM’s
Enterprise Risk Management (ERM) framework, enabling a unified view of business risks. The information
gathered is used to identify the company’s risk profile, while also ensuring that the mitigation measures
identified are consistent with the company’s long-term strategies and with Business Plan objectives.
[53 f]: With regard to opportunities, the approach adopted by the TIM Group, integrated with the ERM process,
aims to identify, evaluate and manage opportunities related to sustainability, including them in the overall
decision-making process. The opportunities related to sustainability are then evaluated both from the point of
view of their economic potential and for their contribution made to the objectives indicated in the Group's
strategic plan. The process is supported by continuous monitoring through specific KPIs, which make it possible
to measure the effectiveness of the actions taken and to realign strategic priorities based on the results
achieved.
[53 g], [53 h]: The double materiality analysis conducted with reference to the current Sustainability Report
made use of a dynamic semantic engine, benchmarking analysis and integrated with inputs from ERM
analysis.
Through extrapolation of data from peers and best practices obtained by drawing on a variety of documentary
sources (such as significant mandatory and voluntary regulations, financial and sustainability reports, and
online news), it was possible to identify the most stringent topics from which the TIM Group started to
determine the list of potentially material IROs and then subsequently, the topics associated with them.
The process has undergone a change from the approach taken in previous years, which was limited to the
impact materiality perspective only. The approach to the materiality analysis carried out in this Sustainability
Report follows the dual perspective of Impact Materiality and Financial Materiality, evaluating and identifying
material impacts, risks and opportunities according to the metrics suggested by the regulations.
[E1 IRO-1, 20]: To identify, evaluate and manage the risks and opportunities related to climate change in the
short (0-3 years), medium (3-10 years) and long term (10-20 years), the TIM Group implements a climate risk
management process on an interim basis (more than once a year) integrated into the wider business risk
management process, providing full disclosure of the correlations between risks and opportunities related to
climate change and to the entire the Group’s value chain (own transactions, downstream and upstream), for a
correct formulation of business strategies.
In particular, within the structure of the Chief Finance Office Department, the Enterprise Risk Management &
Insurance (ERM) function collaborates and supports risk owners in identifying and evaluating risks, accordingly
updating the risk register (the so-called Risk Universe), identifying risk mitigation plans and initiating constant
monitoring of their implementation.
The ERM function conducts specific Risk Assessments on company management in order to evaluate and
quantify risks or opportunities with respect to the Plan's objectives, providing a summary view to the Control
and Risk Committee (CCR) according to the dimensions of economic impact and probability of occurrence,
highlighting the detail by macro-category of risk with respect to the defined Tolerances. Possible reputational
and criminal impacts are also considered. In addition, the Enterprise Risk Management function, in
collaboration with the Sustainability function, has developed a methodology for the assessment and
monitoring of ESG risks with an approach based on Key Risks.
[E1 IRO-1, 20 a]: The activities of telecommunications companies and their value chain can have a material
impact on the global climate system due to the release of greenhouse gases or gases with high warming
potential into the atmosphere. TIM in 2024 produced 2,427,883.42 tons of C02 equivalent (tCO2eq) of total
Location-Based GHG emissions and 2,181,176.72 tCO2eq of total Market-Based GHG emissions (see
"Environmental Information" section, disclosure requirement E1-6 "Gross Scope 1, 2 and 3 GHG emissions and
total GHG emissions").
[E1 IRO-1, 20 b], [E1 2 IRO-1, 21]: In the Enterprise Risk Management process, TIM has identified and
evaluated in the short, medium and long term, physical risks related to rising temperatures, which cause
extreme weather events such as landslides, floods and overflows. These hydrogeological hazards can damage
real estate and network assets, increase Assurance costs, and reduce production capacity due to thermal
stress. TIM used qualitative and quantitative scenario analysis at the Group level to assess its climate strategy.
Specifically, among the scenarios proposed by NGFS (Network for Greening the Financial System), the scenario
based on RCP 1.9 (1.5°C) (Representative Concentration Pathway - scenario with which an increase in emissions
and consequent rise in temperature is associated) and RCP 4.5 (2.1°C-3°C) was considered.
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The Group has chosen a scenario analysis for its climate strategy that assesses climate change risks as part of
the Risk Management (ERM) framework. Risks to business assets, such as floods and inundations, and business
continuity were considered. The analysis focused on hydrogeological risk and job performance.
With respect to hydrogeological risk (Net Zero Scenario by 2050), using Climada’s hydrogeological risk maps, it
was possible to correlate TIM assets with climate risk scenarios and quantify the impact based on
reconstruction/rehabilitation costs. From the correlation between the value of exposure to risk and the
vulnerability of the Assets, it was possible to quantify the increase in the risk value by 2030.
Regarding the risk of work performance disruption, the analysis shows that hot and humid weather conditions
reduce overall work productivity by 9.84%. For TIM, the impact on job performance can translate into a
reduction ranging from 0.8% (with a risk of 16 million euros) in the best case scenario of +1.4°C to a reduction
of 2.4% (with a risk of 50 million euros) in the worst case scenario of +2°C.
TIM also assessed significant weather events in the ICT sector that may affect business operations and disrupt
service business continuity, putting financial results at risk. It conducted a climate risk assessment to monitor
potential damage to assets and the evolution of mitigation actions over time.
To ensure the continuity of Essential Communication Services during critical events or emergencies, TIM has
carried out exercises to test and simulate, for example, the management of natural disasters, civil defense
events, and computer failures. Vulnerability assessment tests are also conducted periodically for risks
associated with IT systems, verifying the efficiency of implemented security countermeasures.
[E1 IRO-1, 20 c i, ii], [E1 IRO-1 21]: Transition risks from the introduction of a carbon tax on CO2 emissions
and increased spending on the purchase or production of renewable energy to curb emissions (Energy
Overspending) were also considered in the Enterprise Risk Management process.
TIM has adopted Group-wide qualitative and quantitative scenario analyses to assess its climate strategy. In
particular, the following scenario was considered among those proposed by NGFS (Network for Greening the
Financial System) aligned with keeping the global temperature below 1.5°C: quantitative analysis with respect
to the Net Zero target by 2040 focused on: a) potential regulatory obligations aimed at offsetting non-
reducible CO2 emissions, such as, for example, the introduction of the carbon tax; b) increased costs associated
with the introduction of the carbon tax.
In the period up to 2040, a linear estimate of the gradual reduction of CO2 emissions was made, with ten-year
intervals. Possible failure to meet targets with hypothetical deviations of 10%, 20%, and 30%, and the
associated economic impact were also estimated.
TIM also assessed significant weather events in the ICT sector that could affect business operations and disrupt
service business continuity, putting financial results at risk.
Regarding the transition scenario and the introduction of a potential carbon tax in this decade, the impact on
business strategy was immediate. An annual carbon tax was estimated based on the Group’s total emissions,
with a unit price of €83.50 per tCO2 (average price 2024). To avoid this annual cost, TIM has brought forward
the goal of using 100% renewable electricity for its Italian operations to 2025, while for Brazil the goal has
already been met.
TIM has assessed transition risk, which could result in higher costs for business operations, particularly for
initiatives to reduce emissions, as described in Disclosure Requirement E1-3 “Actions and Resources Related to
Climate Change Policies”.
The company conducted an in-depth analysis to identify assets and activities that may be incompatible with
the transition to a zero-emission economy or require significant adjustment efforts. This assessment was
conducted in accordance with Delegated Regulation (EU) 2021/2139 and the principles of the EU Taxonomy.
Critical issues identified include data center and network infrastructure management, energy consumption,
and dependence on fossil sources in the supply chain. To address these critical issues, TIM invests in data
centers with environmentally-friendly cooling systems that use renewable energy. In addition, the company
works with suppliers to reduce indirect emissions (Scope 3) by implementing more stringent ESG criteria in
production processes.
[E5 IRO-1, 11 a]: The TIM Group has implemented a double materiality analysis process aimed at identifying
the material impacts, risks, and opportunities associated with the use of resources and the circular economy,
with particular reference to issues related to incoming resource flows, outgoing resource flows, and waste,
carrying out an assessment that would take into account the effects produced by these IROs along the entire
value chain, both upstream and downstream.
The analysis was conducted starting from the context in which the Group operates, its assets, its activities, and
from an external analysis through the support of the Datamaran dynamic semantic engine, which, through the
analysis of public documents, relevant regulations and sustainability reports of a representative sample of
companies in the “Technology & Telecommunication” sector in Italy and Brazil, identified material issues
related to the use of resources and the circular economy (ESRS E5). Following the materiality analysis, a single
IRO associated with the ESRS E5 topic emerged as material, specifically a negative impact. This impact was
attributable to the sub-topics “flows of outgoing resources” and “waste”, thus making the sub-topic “flows of
inbound resources” non-material.
[E5 IRO-1, 11b]: The materiality of the impacts, risks and opportunities associated with the use of resources
and the circular economy was determined through one-to-one interviews with internal stakeholders and the
administration of surveys to external stakeholders, including civil society in the latter category.
[G1 IRO-1, 6]: In considering the criteria used in the process to identify material IROs in relation to business
conduct issues, the following were considered: the location of the Company, as TIM considers the geographic
context of its operations, with a focus on areas where there are greater risks of negative impacts related to
ethical issues, human rights, and regulatory compliance; its business, analyzing different business areas and
operational activities, assessing exposure to risks of misconduct; the telecommunications sector in which it
operates, as it is subject to stringent regulations as well as specific challenges in terms of privacy, data security
and social responsibility; the structure of the operation, as the process considers corporate governance, how
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subsidiaries and joint ventures are managed, and compliance and internal control policies designed to prevent
unethical behavior.
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Index of ESRS contents and contents from other EU legislative
acts
Disclosure Requirement IRO-2 - Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
[56]: In line with regulatory requirements, the following is the list of disclosure requirements represented in the
Sustainability Report 2024, based on the results of the double materiality analysis. For the purpose of selecting
the reported disclosure requirements, the following were excluded:
■
requests related to the topics "ESRS E2 - Pollution," "ESRS E3 - Water and Marine Resources," and "ESRS
E4 - Biodiversity and Ecosystems," which emerged as not material;
■
additional requests for details related to the issues that emerged as material but for which, after a
subsequent evaluation considering the Group's operational context and actual applicability, were
considered as not material.
[56]: ESRS Content Index
ESRS Standard
Disclosure Requirement
Phase-in
Page
General Information
ESRS 2
Basis for preparation
BP-1 General criteria for preparing sustainability statements
126
BP-2 Disclosure related to specific circumstances
127
Governance
GOV-1 Role of administrative, management and supervisory bodies
129
GOV-2 Information provided to the company's administrative, management and
supervisory bodies and sustainability issues addressed by them
132
GOV-3 Integrating sustainability performance into incentive systems
134
GOV-4 Statement on due diligence
135
GOV-5 – Risk management and internal controls over sustainability reporting
136
Strategy
SBM-1 Strategy, business model and value chain
137
SBM-2 Interests and views of stakeholders
142
SBM-3 Material impacts, risks, and opportunities and their interaction with
strategy and business model
144
Impact, risk, and opportunity management
IRO-1 Description of processes to identify and assess relevant impacts, risks, and
opportunities
152
Index of ESRS contents and contents from other EU legislative acts
IRO-2 - Disclosure requirements in ESRS covered by the company’s sustainability
statement
156
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Environmental Information
Taxonomy
165
E1 Climate
Change
Governance
E1 GOV-3 – Integration of sustainability-related performance in incentive
schemes
135
Strategy
E1-1 – Transition plan for climate change mitigation
180
E1 ESRS 3 SBM-3 Material impacts, risks, and opportunities and their interaction
with strategy and business model
Datapoint RA 7c subject
to phase-in
180
Impact, risk, and opportunity management
E1 IRO-1 Description of processes to identify and assess relevant climate-related
impacts, risks, and opportunities
153
MDR-P Policies adopted to manage relevant sustainability issues
182
E1-2 - Policies related to climate change mitigation and adaptation
182
MDR-A Actions and resources related to relevant sustainability issues
185
E1-3 Actions and resources related to climate change policies
185
Metrics and Targets
MDR-T Monitoring the effectiveness of policies and actions through targets
190
E1-4 Targets related to climate change mitigation and adaptation
190
MDR-M Metrics related to relevant sustainability issues
191, 193, 197
E1-5 Energy consumption and mix
191
E1-6 Gross Scopes 1,2,3 and Total GHG emissions
193
E1-7 GHG removals and GHG emission mitigation projects financed with carbon
credits
197
E1-8 Internal carbon pricing
(The Group does
not set an internal
carbon price)
E1-9 – Anticipated financial effects of material physical and transition risks and
potential climate-related opportunities
Disclosure requirement
subject to phase-in
-
E5 Resource use
and circular
economy
Impact, risk, and opportunity management
E5 IRO-1 Description of processes to identify and assess relevant impacts, risks,
and opportunities related to resource use and the circular economy
154
MDR-P Policies adopted to manage relevant sustainability issues
198
E5-1 – Policies related to resource use and circular economy
198
MDR-A Actions and resources related to relevant sustainability issues
199
E5-2 Actions and resources related to resource use and circular economy
199
Metrics and Targets
MDR-T Monitoring the effectiveness of policies and actions through targets
201
E5-3 Goals related to resource use and circular economy
201
MDR-M Metrics related to relevant sustainability issues
204
E5-5 Resource outflows
202
E5-6 Anticipated financial effects from material resource use and circular
economy-related risks and opportunities
Disclosure requirement
subject to phase-in
-
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Social Information
S1 Own workforce
Strategy
S1 SBM-2 Stakeholders' interests and opinions
204
S1 SBM-3 Relevant impacts, risks, and opportunities and their interaction with
the strategy and business model
204
Impact, risk, and opportunity management
MDR-P Policies adopted to manage relevant sustainability issues
205
S1-1 Policies related to own workforce
205
S1-2 Processes for engaging own workforce and employee representatives on
impacts
211
S1-3 Processes to remedy negative impacts and channels for own workers to
raise concerns
212
MDR-A Actions and resources related to relevant sustainability issues
214
S1-4 Action on relevant impacts to own workforce and approaches for managing
relevant risks and pursuing relevant opportunities in relation to own workforce,
and effectiveness of such actions
214
Metrics and Targets
MDR-T Monitoring the effectiveness of policies and actions through targets
220
S1-5 Goals related to managing relevant negative impacts, enhancing positive
impacts, and managing relevant risks and opportunities
220
MDR-M Metrics related to relevant sustainability issues
221, 222, 223, 225,
226, 227, 228
S1-6 Characteristics of the undertaking’s employees
221
S1-7 Characteristics of non-employee workers in the undertaking’s own
workforce
Disclosure requirement
subject to phase-in
-
S1-8 Collective bargaining coverage and social dialogue
222
S1-9 Diversity metrics
223
S1-10 Adequate wages
225
S1-11 Social protection
Disclosure requirement
subject to phase-in
-
S1-12 Persons with disabilities
225
S1-13 Training and skills development metrics
226
S1-14 Health and safety metrics
Datapoints 88a,b,c and
RA80 subject to phase-
in limited to non-
employees
226
S1-15 Work-life balance metrics
227
S1-16 Remuneration metrics (pay gap and total remuneration)
227
S1-17 Incidents, complaints and severe human rights impacts
228
S2 Workers in the
value chain
Strategy
S2 SBM-2 Stakeholders' interests and opinions
229
S2 SBM-3 Relevant impacts, risks, and opportunities and their interaction with
strategy and business model
229
Impact, risk, and opportunity management
MDR-P Policies adopted to manage relevant sustainability issues
229
S2-1 Policies related to workers in the value chain
229
S2-2 Processes for involving workers in the value chain on impacts
232
S2-3 Processes to remedy negative impacts and channels for workers in the
value chain to voice concerns
233
MDR-A Actions and resources related to relevant sustainability issues
233
S2-4 – Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
233
Metrics and Targets
MDR-T Monitoring the effectiveness of policies and actions through targets
235
S2-5 Targets related to managing relevant negative impacts, enhancing positive
impacts, and managing relevant risks and opportunities
235
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S3 Affected
communities
Strategy
S3 SBM-2 Stakeholders' interests and opinions
236
S3 SBM-3 Relevant impacts, risks, and opportunities and their interaction with
the strategy and business model
236
Impact, risk, and opportunity management
MDR-P Policies adopted to manage relevant sustainability issues
236
S3-1 Policies related to affected communities
236
S3-2 Processes for engaging with affected communities about impacts
238
MDR-A Actions and resources related to relevant sustainability issues
239
S3-4 Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
239
Metrics and Targets
MDR-T Monitoring the effectiveness of policies and actions through targets
240
S3-5 Targets related to managing relevant negative impacts, enhancing positive
impacts, and managing relevant risks and opportunities
240
S4 Consumers and
end-users
Strategy
S4 SBM-2 Stakeholders' interests and opinions
241
S4 SBM-3 Relevant impacts, risks, and opportunities and their interaction with
the strategy and business model
241
Impact, risk, and opportunity management
MDR-P Policies adopted to manage relevant sustainability issues
242
S4-1 Policies related to consumers and end-users
242
S4-2 Processes for engaging consumers and end users about impacts
246
S4-3 Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
248
MDR-A Actions and resources related to relevant sustainability issues
248
S4-4 Taking action on material impacts on consumers and end- users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end-users, and effectiveness of those actions
248
Metrics and Targets
MDR-T Monitoring the effectiveness of policies and actions through targets
254
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
254
Governance Information
G1 - Business
conduct
Impact, risk, and opportunity management
G1 GOV-1 Role of administrative, management and supervisory bodies
131
G1 IRO-1 Description of processes to identify and assess relevant impacts, risks,
and opportunities
154
MDR-P Policies adopted to manage relevant sustainability issues
255
G1-1 Business conduct policies and corporate culture
255
MDR-A Actions and resources related to relevant sustainability issues
260
G1-2 Supplier relationship management
260
G1-3 Prevention and detection of corruption and bribery
262
Metrics and Targets
G1-4 Incidents of corruption or bribery
263
G1-6 Payment practices
263
Phase-in: Disclosure requirements/paragraphs (datapoints) for which TIM does not provide disclosure as they are
subject to the possibility of gradual introduction
Instead, the following table maps all the paragraphs (datapoints) with related disclosure requirements that, in
addition to CSRD, respond to other EU regulations, such as the "Sustainable Finance Disclosure
Regulation" (SFDR), the "Capital Requirements Regulation" (Pillar 3), the "Benchmark Indices Regulation," and
the "European Climate Act." If the paragraph is reported by TIM as relevant, the reference page where to find
the information is given. On the other hand, if the paragraph is not accounted for, the number is not specified.
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Paragraph and
corresponding Disclosure
Requirement.
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate
Law
reference
Page
number
ESRS 2 GOV-1
Board’s gender diversity
paragraph 21 (d)
Annex 1, Table 1,
Indicator number
13
Commission Delegated
Regulation
(EU) 2020/1816 (5),
Annex II
129
ESRS 2 GOV-1
Percentage of board
members who are
independent, paragraph
21 (e)
Commission Delegated
Regulation
Commission (EU)
2020/1816, Annex II
130
ESRS 2 GOV-4
Statement on due
diligence, paragraph 30
Annex 1, Table 3,
Indicator number
10
135
ESRS 2 SBM-1
Engagement in activities
related to fossil fuel
activities, paragraph 40 (d)
i
Annex 1, Table 1,
Indicator number 4
Article 449-bis of Regulation
(EU)
no. 575/2013;
implementing regulation
(EU) 2022/2453 of the
Commission (6),
Table 1 - Qualitative
information on
environmental risk and
Table 2
- Qualitative information on
social risk
Commission Delegated
Regulation
(EU) 2020/1816, Annex
II
-
ESRS 2 SBM-1
Engagement in activities
related to chemical
production paragraph 40
(d) ii
Annex 1, Table 2,
Indicator number 9
Commission Delegated
Regulation
(EU) 2020/1816, Annex
II
-
ESRS 2 SBM-1
Involvement in activities
related to controversial
weapons, paragraph 40
(d) iii
Annex 1, Table 1,
Indicator number
14
Article 12,
paragraph 1 of
Delegated Regulation
(EU) 2020/1818 (7) and
Annex II of Delegated
Regulation (EU)
2020/1816
-
ESRS 2 SBM-1
Engagement in activities
related to cultivation and
production of tobacco
paragraph 40 (d) iv
Article 12,
paragraph 1 of
Delegated Regulation
(EU) 2020/1818 and
Annex II of Delegated
Regulation (EU)
2020/1816
-
ESRS E1-1
Transition plan to reach
climate neutrality by 2050,
paragraph 14
Article 2(1) of
Regulation
(EU)
2021/1119
-
ESRS E1-1
Companies excluded from
Paris-aligned Benchmarks
paragraph 16 (g)
Article 449-bis of Regulation
(EU) no. 575/2013;
Commission Implementing
Regulation (EU) 2022/2453,
model 1: Bank portfolio —
Indicators of potential
transition risk related to
climate change: Credit
quality of exposures by
sector, emissions and
remaining duration
Article 12, paragraphs 1
d) to g), and paragraph
2, of Delegated
Regulation (EU)
2020/1818
-
ESRS E1-4
GHG emission reduction
targets, paragraph 34
Annex 1, Table 2,
Indicator number 4
Article 449-bis of Regulation
(EU) no. 575/2013;
Commission Implementing
Regulation (EU) 2022/2453,
model 3: Bank portfolio —
Indicators of potential
transition risk related to
climate change: alignment
metrics
Article 6 of Delegated
Regulation (EU)
2020/1818
190
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ESRS E1-5
Energy consumption from
fossil sources
disaggregated by sources
(only high climate impact
sectors), paragraph 38
Annex 1, Table 1,
Indicator number 5
and Annex 1, Table
2, Indicator number
5
192
ESRS E1-5 Energy
consumption and mix,
paragraph 37
Annex 1, Table 1,
Indicator number 5
191
ESRS E1-5
Energy intensity
associated with activities
in high climate impact
sectors, paragraphs 40 to
43
Annex 1, Table 1,
Indicator number 6
192, 193
ESRS E1-6
Gross Scope 1, 2, 3 and
Total GHG emissions,
paragraph 44
Annex 1, Table 1,
Indicator numbers
1 and 2
Article 449-bis of Regulation
(EU) no. 575/2013;
Commission Implementing
Regulation (EU) 2022/2453,
model 1: Bank portfolio —
Indicators of potential
transition risk related to
climate change: Credit
quality of exposures by
sector, emissions and
remaining duration
Delegated Regulation
(EU) 2020/1818, Article
5(1), 6 and 8(1)
193
ESRS E1-6
Intensity of gross GHG
emissions, paragraphs 53
to 55
Annex 1, Table 1,
Indicator number 3
Article 449-bis of Regulation
(EU) no. 575/2013;
Commission Implementing
Regulation (EU) 2022/2453,
model 3: Bank portfolio —
Indicators of potential
transition risk related to
climate change: alignment
metrics
Article 8(1) of
Delegated Regulation
(EU) 2020/1818
197
ESRS E1-7
GHG removals and carbon
credits, paragraph 56
Article 2(1) of
Regulation
(EU)
2021/1119
197
ESRS E1-9
Exposure of the
benchmark portfolio to
climate-related physical
risks, paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex
II Delegated Regulation
(EU) 2020/1816, Annex
II
phase-in
ESRS E1-9
Disaggregation of
monetary amounts by
acute and chronic physical
risk, paragraph 66 (a)
ESRS E1-9
Location of significant
assets at material physical
risk paragraph 66 (c)
Article 449-bis of Regulation
(EU) no. 575/2013; points 46
and 47 of the Commission’s
Implementing Regulation
(EU) 2022/2453; Model 5:
Bank portfolio — Indicators
of potential transition risk
related to climate change:
exposures subject to
physical risk
phase-in
ESRS E1-9 Breakdown of
the carrying value of its
real estate assets by
energy-efficiency classes,
paragraph 67 (c)
Article 449-bis of Regulation
(EU) no. 575/2013; point 34
of the Commission’s
Implementing Regulation
(EU) 2022/2453; Model 2:
Bank portfolio — Indicators
of potential transition risk
related to climate change:
loans secured by real estate
— Energy efficiency of
collateral
phase-in
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ESRS E1-9
Degree of exposure of the
portfolio to climate-
related opportunities,
paragraph 69
Delegated Regulation
(EU) 2020/1818, Annex
II
phase-in
ESRS E2-4
Amount of each pollutant
listed in Annex II of the E-
PRTR Regulation
(European Pollutant
Release and Transfer
Register) emitted to air,
water and soil, paragraph
28
Annex 1, Table 1,
Indicator number 8;
Annex 1, Table 2,
Indicator number 2;
Annex 1, Table 2,
Indicator number 1;
Annex 1, Table 2,
Indicator number 3
-
ESRS E3-1
Water and marine
resources, paragraph 9
Annex 1, Table 2,
Indicator no. 7
-
ESRS E3-1
Dedicated policy,
paragraph 13
Annex 1, Table 2,
Indicator number 8
-
ESRS E3-1
Sustainable oceans and
seas, paragraph 14
Annex 1, Table 2,
Indicator number
12
-
ESRS E3-4
Total water recycled and
reused paragraph 28 (c)
Annex 1, Table 2,
Indicator number
6.2
-
ESRS E3-4
Total water consumption
in m3 compared to net
revenue on own
operations, paragraph 29
Annex 1, Table 2,
Indicator no. 6.1
-
ESRS 2 IRO-1 - E4
paragraph 16 (a) i
Annex 1, Table 1,
Indicator no. 7
-
ESRS 2 IRO-1 — E4
paragraph 16, letter b)
Annex 1, Table 2,
Indicator no. 10
-
ESRS 2 IRO-1 — E4
paragraph 16, letter c)
Annex 1, Table 2,
Indicator no. 14
-
ESRS E4-2
Sustainable land /
agriculture practices or
policies, paragraph 24 (b)
Annex 1, Table 2,
Indicator no. 11
-
ESRS E4-2
Sustainable oceans / seas
practices or policies,
paragraph 24 (c)
Annex 1, Table 2,
Indicator no. 12
-
ESRS E4-2
Policies to address
deforestation, paragraph
24 (d)
Annex 1, Table 2,
Indicator no. 15
-
ESRS E5-5
Non-recycled waste,
paragraph 37 (d)
Annex 1, Table 2,
Indicator no. 13
204
ESRS E5-5
Hazardous waste and
radioactive waste,
paragraph 39
Annex 1, Table 1,
Indicator no. 9
205
ESRS 2 – SBM3 – S1
Risk of incidents of forced
labor, paragraph 14 f)
Annex 1, Table 3,
Indicator number
13
206
ESRS 2 – SBM3 – S1
Risk of incidents of child
labor, paragraph 14 g)
Annex I, Table 3,
indicator no. 12
206
ESRS S1-1
Human rights policy
commitments, paragraph
20
Annex 1, Table 3,
Indicator number 9
and Annex 1, Table
1, Indicator no. 11
212
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ESRS S1-1
Due diligence policies on
issues addressed by the
fundamental International
Labor Organization
Conventions 1 to 8,
paragraph 21
Commission Delegated
Regulation (EU)
2020/1816, Annex II
212
ESRS S1-1
processes and measures
for preventing trafficking
in human beings,
paragraph 22
Annex 1, Table 3,
Indicator no. 11
213
ESRS S1-1
workplace accident
prevention policy or
management system,
paragraph 23
Annex 1, Table 3,
Indicator no. 1
213
ESRS S1-3
Grievance/complaints
handling mechanisms,
paragraph 32 (c)
Annex I, Table 3,
indicator no. 5
215
ESRS S1-14
Number of fatalities and
number and rate of work-
related accidents,
paragraph 88
b) and c)
Annex I, Table 3,
indicator no. 2
Commission Delegated
Regulation (EU)
2020/1816, Annex II
229, 230
ESRS S1-14
Number of days lost to
injuries, accidents,
fatalities or illness,
paragraph 88 (e)
Annex I, Table 3,
Indicator no. 3
230
ESRS S1-16
Unjust gender pay gap,
paragraph 97 a)
Annex I, Table 1,
Indicator no. 12
Commission Delegated
Regulation (EU)
2020/1816, Annex II
230
ESRS S1-16
Excess pay gap in favor of
the CEO, paragraph 97 b)
Annex I, Table 3,
Indicator no. 8
231
ESRS S1-17
Incidents related to
discrimination, paragraph
103 a)
Annex I, Table 3,
Indicator no. 7
231
ESR S1-17 Failure to
observe the United
Nations and OECD guiding
principles on business and
human rights, paragraph
104 a)
Annex 1, Table 1,
Indicator number
10 and Annex 1,
Table 3, Indicator
no. 14
Annex II of Delegated
Regulation (EU)
2020/1816 and Article
12(1) of Delegated
Regulation (EU)
2020/1818
231
ESRS 2 SBM-3 – S2
Severe risk of child labor or
forced labor in the value
chain, paragraph 11 b)
Annex I, Table 3,
Indicators 12 and
13
232
ESRS S2-1
Human rights policy
commitments, paragraph
17
Annex 1, Table 3,
Indicator number 9
and Annex 1, Table
1, Indicator no. 11
234
ESRS S2-1 Policies related
to value chain workers,
paragraph 18
Annex I, Table 3,
Indicators 11 and 4
235
ESRS S2-1 Failure to
observe the United
Nations and OECD guiding
principles on business and
human rights and the
OECD guidelines,
paragraph 19
Annex I, Table 1,
Indicator no. 10
Annex II of Delegated
Regulation (EU)
2020/1816 and Article
12(1) of Delegated
Regulation (EU)
2020/1818
235
ESRS S2-1
Due diligence policies on
issues addressed by the
fundamental International
Labor Organization
Conventions 1 to 8,
paragraph 19
Commission Delegated
Regulation (EU)
2020/1816, Annex II
235
Report on Operations of the
TIM Group
Index of ESRS contents and contents from other EU legislative acts
163
ESRS S2-4
Human rights issues and
incidents connected to its
upstream and
downstream value chain,
paragraph 36
Annex I, Table 3,
Indicator no. 14
238
ESRS S3-1
Human rights policy
commitments, paragraph
16
Annex 1, Table 3,
Indicator number 9
and Annex 1, Table
1, Indicator no. 11
241
ESRS S3-1
Failure to observe the
UNGPs on Business and
Human Rights, ILO
principles or and OECD
guidelines, paragraph 17
Annex I, Table 1,
Indicator no. 10
Annex II of Delegated
Regulation (EU)
2020/1816 and Article
12(1) of Delegated
Regulation (EU)
2020/1818
241
ESRS S3-4
Human rights issues and
incidents, paragraph 36
Annex I, Table 3,
Indicator no. 14
243
ESRS S4-1 Policies related
to consumers and end-
users, paragraph 16
Annex 1, Table 3,
Indicator number 9
and Annex 1, Table
1, Indicator no. 11
249
ESRS S4-1
Failure to observe the
United Nations and OECD
guiding principles on
business and human
rights and the OECD
guidelines, paragraph 17
Annex I, Table 1,
Indicator no. 10
Annex II of Delegated
Regulation (EU)
2020/1816 and Article
12
(1), of Delegated
Regulation (EU)
2020/1818
249
ESRS S4-4
Human rights issues and
incidents, paragraph 35
Annex I, Table 3,
Indicator no. 14
256
ESRS G1-1
United Nations
Convention against
Corruption, paragraph 10
b)
Annex I, Table 3,
Indicator no. 15
-
ESRS G1-1
Protection of
whistleblowers, paragraph
10 d)
Annex I, Table 3,
Indicator no. 6
-
ESRS G1-4
Fines for violation of anti-
corruption and anti-
bribery laws paragraph 24
a)
Annex I, Table 3,
Indicator no. 17
Annex II of Delegated
Regulation (EU)
2020/1816
266
ESRS G1-4
Standards of anti-
corruption and anti-
bribery, paragraph 24 b)
Annex I, Table 3,
Indicator no. 16
266
[57]: Climate change has been considered significant and therefore the disclosure requirements of ESRS E1
“Climate Change” will be reported.
[59]: Material impacts, risks, and opportunities, identified according to the criteria and thresholds outlined in
IRO 1 “Description of the process for identifying and assessing material impacts, risks, and opportunities”
datapoints [53 b iv] and [53 c ii], in order to determine the material information to be disclosed were associated
with the topics, sub-topics, and sub-sub-topics consistent with what is in ESRS 1, Section 3.2 Material Issues
and Materiality of Information and Appendix A.
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164
2. ENVIRONMENTAL INFORMATION
Taxonomy
Implementation of the European Taxonomy in the TIM Group
The European Taxonomy, pursuant to Regulation 2020/852 of June 20, 2020 and Delegated Regulation
2021/2178 of 6 July 2021, is a classification system that aims to provide a clear and consistent picture of
economic activities that can be considered environmentally sustainable.
In this section, the TIM Group’s economic activities that fall under the definitions of environmentally
sustainable activities contained in the legislation and, therefore, are likely to contribute substantially to one, or
more, of the six environmental objectives pursued by the European Union are explained:
1.
climate change mitigation
2.
adaptation to climate change
3.
sustainable use and protection of water and marine resources
4.
transition to a circular economy
5.
pollution prevention and reduction
6.
protection and restoration of biodiversity and ecosystems.
Economic activities are defined as sustainable, that is, "aligned" with the Taxonomy, if they simultaneously
meet the following conditions:
■
contribute substantially to one or more of the EU's six environmental objectives;
■
do not cause significant harm to any of the other taxonomic objectives, the principle of “Do No Significant
Harm” - DNSH;
■
are carried out in compliance with the Minimum Safeguards adopted by companies to ensure responsible
business conduct;
■
comply with the Technical Screening Criteria-TSC established by the European Commission.
The TIM Group conducted the eligibility analysis and alignment of its activities with the European Taxonomy
with regard to all six environmental objectives, but, compared to previous years, it had a different business
scope as a result of the contribution to FiberCop of the business unit including the fixed network infrastructure
and wholesale activities on July 1, 2024. The results reflect the new business perimeter, thus determining a
discontinuity in the comparability of values compared to the previous year.
The economic activities identified belong to the following Group companies: TIM S.p.A., Noovle S.p.A., Olivetti
S.p.A., TI Sparkle S.p.A. and TIM S. A. (Brazil business unit).
The scope of eligibility of the TIM Group5
The identification of eligible economic activities consisted of four phases:
■
a desk analysis to compare the TIM Group's business with the classification of sustainable economic
activities provided by the regulations;
■
the preparation of the list of potentially eligible activities;
■
validation of the list through interaction with the business functions in charge of the activities;
■
collection of information acquired through the ESG Platform to formalize the process.
At the end of this process, 78 activities were mapped.
Below is a table with a summary of the economic activities included in the scope of eligibility of the TIM Group.
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Taxonomy
165
5 Delegated Regulation 2021/2178, paragraph 1.2.2. — Assessment of compliance with Regulation (EU) 2020/852
Economic activities
Description of TIM activities
Objective
Company
4.1 Power
Generation by
Photovoltaic Solar
Technology
• Powering of the network with electricity generated by photovoltaic solar
technology. Energy is produced by 113 power plants.
• 4G mobile connectivity generated by solar-powered antennas from
satellite-connected solar panels. This activity makes it possible to bring
coverage even to remote areas of the country that are more difficult to
reach and connect.
Mitigation to
climate
change/
Adaptation to
climate
change
TIM S.A.
4.5 Power
generation starting
from hydroelectric
energy
• Powering the network with electricity generated from hydroelectric energy.
Energy is produced by 14 power plants.
Mitigation to
climate
change/
Adaptation to
climate
change
TIM S.A.
4.8 Power
generation from
bioenergy
• Powering the network with electricity generated from bioenergy. Energy is
produced by 2 power plants.
Mitigation to
climate
change/
Adaptation to
climate
change
TIM S.A.
4.30 High-
performance
cogeneration of
heat/cold and
electricity from
gaseous fossil fuels
• Operation and maintenance of three high-efficiency cogeneration plants
in data centers for combined heat/cool and power generation, with benefits
in terms of reduced losses from separate power generation and fuel savings.
Mitigation to
climate
change/
Adaptation to
climate
change
Noovle S.p.A.
5.1 Construction,
expansion and
management of
water collection,
treatment and
supply systems
• Implementation of a remote water monitoring system to monitor and
report water consumption in Core and Public Cloud Data Centers using the
Water Usage Effectiveness (WUE) indicator
Mitigation to
climate
change/
Adaptation to
climate
change
Noovle S.p.A.
7.3. Installation,
maintenance and
repair of energy
efficiency devices
Extraordinary or evolutionary maintenance for Data Centers that consists
of:
• repair and efficiency improvement of industrial assets or ancillary services
serving the Data Center;
• technological refresh for obsolescence with the installation of more
performing industrial equipment in terms of energy efficiency
Mitigation to
climate
change/
Adaptation to
climate
change
Noovle S.p.A.
7.5 Installation,
maintenance and
repair of tools and
devices for
measuring,
regulating and
controlling the
energy performance
of buildings
• Implementation of new energy meters in the data centers used by the
National Strategic Plan (NSP) to improve the monitoring and efficiency of
energy consumption;
• Installation of new meter for monitoring the remaining autonomy of
uninterruptible power supplies (UPSs) to check load and unload levels;
• Installation of new probes for temperature and humidity detection;
• Implementation of temperature monitoring sensors in building
management systems and refrigeration units, to optimize climate control
and energy efficiency.
Mitigation to
climate
change/
Adaptation to
climate
change
Noovle S.p.A.
7.6 Installation,
Maintenance, and
Repair of Renewable
Energy Technologies
• Construction of two new photovoltaic systems, one at the West Milan site
and one at the West Turin site.
Mitigation to
climate
change/
Adaptation to
climate
change
Noovle S.p.A.
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166
8.1 Data processing,
hosting and related
activities
Data processing, hosting and related activities carried out in TIM Group Data
Centers. Specifically:
• cloud infrastructure services that enable TIM to implement digital solutions
characterized by maximum efficiency, modularity, scalability, and security;
• data center services, i.e. colocation solutions, housing and value-added
infrastructure services.
Noovle Data Centers
They are distributed throughout the country for a total of 50,000 square
meters of systems rooms and approx. 100.8 MW of power available at the
Points of Delivery (POD) of the electrical cabinets.
There are 7 Core Data Center offering maximum-performance cloud and co-
location services; 6 Public Cloud Data Centers, where the platforms of the
largest international public cloud providers operate with the highest levels of
performance; 3 Service Centers i.e., secure and reliable micro-data centers
near customer locations.
A high-speed network connects Data Centers to provide low-latency business
continuity and disaster recovery solutions between Noovle Data Centers or
between Noovle Data Centers and the customer's site.
Noovle Data Centers host both "market solutions," that is, digital services
offered in the market by TIM and other Group companies, including Olivetti;
and "captive solutions," i.e., digital services that support the business and
operations of TIM itself and other TIM Group companies. This is
complemented by Disaster Recovery and Proximity solutions to ensure
security and territorial coverage.
Sparkle Data Centers
They offer colocation services on a global scale.
Data centers in Greece include a total area of 14,000 square meters; three are
located in Athens in the areas of Koropi and Metamorfosis (Tier III certificate)
and one in Chania on the island of Crete.
Data Center in Turkey, located in Yenibosna, is one of the largest and most
important colocation facilities in Turkey. Thanks to its neutrality, it houses
the majority of national and international suppliers.
Data Center in Panama is located in Corozal and is one of the largest and most
important open colocation facilities in Panama. The New Generation Data
Center platform is designed to meet the needs of customers looking to
expand their presence in Central America.
Data Centers occupy a total area of about 1,750 square meters and the total
installed power is 4.7 MW between the Milan and Palermo Data Centers. The
last-named center, Sicily Open Data Center, is a Data Center that allows
customers to be managed in colocation through state-of-the-art data
security technologies. In addition, there are other Landing Hubs for
submarine cable systems in the Italian territory.
TIM S.A. Data Center in Brazil
Certifications: data centers are certified to ABNT NBR 15247 offering the
highest level of physical security for rooms, considering fire resistance and
other levels of protection not covered by other certifications, such as:
protection against fire, heat, humidity, water, improper access and breaking
and entering - as well as redundant electrical and air conditioning facilities.
30% of TIM S.A.’s Data Centers. (100% of IT DCs) are covered by ISO 14001
certification.
Security: buildings where data centers are located have an Atmospheric
Discharge Protection System (ADPS). The rooms have fire fighting systems
(SDAEI) and raised floors.
Water management: the air-conditioning system has sensors that warn of low
water levels and cut off the supply.
Energy consumption: the average PUE in 2024 was 1.64, achieving the goal of
keeping this parameter below 1.66.
Mitigation to
climate
change/
Adaptation to
climate
change
TIM S.p.A.
Olivetti S.p.A.
Telecom Italia
Sparkle S.p.A.
TIM S.A.
Noovle S.p.A.
8.3 Programming
and broadcasting
activities
• Programming and broadcasting of audiovisual content delivered through
the marketing of the TIMVISION offering. The offer includes movies, TV
series, sports and other entertainment programs that can be enjoyed by
taking out a monthly subscription, which also includes a range of content
that can be purchased (thus enjoyed countless times) or rented (thus
enjoyed for a limited period).
Adaptation to
climate
change
TIM S.p.A.
5.3 Preparing for
reuse of end-of-life
products and
product components
• Reuse of "decommissioned equipment" located at the customer's
premises" (Customer Premises Equipment) such as modems and routers.
The initiative envisages that the material is collected, evaluated and,
depending on the conditions, put through the reconditioning process for a
new use.
• Trade-in program on mobile phones and smartwatches where customers
can return their old devices and obtain a discount on the purchase of new
models. All devices undergo a detailed evaluation and/or repair process to
be reused/resold. Equipment that cannot be reused or reconditioned is sent
for recycling.
Transition to
a circular
economy
TIM S.A.
5.4. Sale of second-
hand goods
• Offering of reconditioned smartphones (TIM). In 2024, five grade A
reconditioned models were in the price list, which guarantee customers
high-quality devices at an affordable price and with a lower environmental
impact. Smartphones, which can be purchased with immediate payment or
installment solutions, are available at TIM outlets and on digital channels.
TIM purchases products from specialized suppliers that perform
reconditioning through a rigorous process of repairing, replacing and
updating damaged or worn components.
• Supply of regenerated toners (Olivetti). Regenerated cartridges are empty
original cartridges that are refilled with toner and, if necessary, repaired
before being reintroduced into the market. This process reduces waste and
environmental impact while maintaining high print quality.
Transition to
a circular
economy
TIM S.p.A.
Olivetti S.p.A.
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TIM Group
Taxonomy
167
5.5. Product-as-a-
Service and other
service models
geared towards
circular use and
results
• Rental of mobile devices, for Multibusiness customers. The formula
involves the rental of a number of smartphones equal to the users activated
with the contract concluded with TIM, at the end of which, unless there are
any renewals, the customer is required to return the rented devices. The
initiative guarantees greater flexibility in the management of corporate
devices, optimizing technological resources and contributing to the reduction
of the environmental impact associated with the production and disposal of
equipment.
Transition to
a circular
economy
TIM S.p.A.
4.1.“Provision of
solutions based on
IT/OT (information
technology/
operational
technologies) data
for the reduction of
losses
Solutions for water network operators that provide:
• Implementation of advanced telecontrol systems for monitoring and
management of water infrastructure. The initiative involves the use of an
advanced technology, Supervisory Control and Data Acquisition (SCADA),
which allows real time data collection from the various sensors, sending
commands to devices to control and optimize operations and store the data
collected, allowing historical analyses that can be used to improve
operational efficiency;
• Maintenance of remote control systems in the water sector, with
monitoring of water pressure and flow to promptly identify any leaks and
activate rapid actions.
Sustainable
use and
protection of
water and
marine
resources
Olivetti S.p.A.
Verification of alignment of technical screening criteria and DNSH
The verification activity required identification of the relevant technical functions. In some cases, the
verification was the responsibility of a single function, in other cases it was necessary to involve multiple
functions and/or even third parties that collaborate with the TIM Group in the management of eligible
economic activities. Technical and DNSH criteria alignment analysis information has been consolidated on the
ESG Platform to ensure accountability of the verification process. The analysis of the TIM Group's business
activities showed that they are not aligned with the technical and DNSH criteria, but at the same time
identified future investments needed to ensure regulatory compliance.
In relation to Activity 8.3 for the CCA objective, the TIM Group verified compliance with the eligibility criteria,
including the analysis of climate risks on assets and the resulting adaptation plan.
Verification of compliance with the Minimum Safeguard Guarantees
The TIM Group conducts its economic activities in compliance with the minimum safeguards set forth in Article
18 of EU Regulation 2020/852. In fact, the company’s operations are subject to compliance with numerous
policies and control tools in line with regulations.
Human Rights
■
membership of the United Nations Global Compact;
■
adoption of the "Human Rights Policy" that applies to all employees and partners, at home and abroad,
which includes issues such as human trafficking, forced labor, child labor, discrimination, freedom of
association, collective bargaining, equal pay, and health and safety. It is inspired by the Group’s “Code of
Ethics” and referred to by the main corporate documents. In Brazil, TIM S.A. complements its commitment
to human rights with its "Social Responsibility Policy."
Corruption
■
Compliance with the values expressed in the "Code of Ethics and Conduct."
■
Adoption of the “Anti-Corruption Policy” that defines standards and rules to prevent corruption. In addition,
in Brazil, TIM S.A. has implemented an “Anti-Corruption Management Manual” with related training for
employees.
■
Adoption of an Anti-corruption Management System in accordance with the UNI ISO 37001 standard.
Taxation
■
Tax strategy based on honesty, fairness and compliance, including cooperative and transparent behavior
towards tax authorities and third parties in order to reduce impacts in terms of tax or reputational risk
(“TIM Tax Strategy”).
■
Tax risk management and control system with stringent governance;
■
Involvement of Top Management and the Tax Function in business decisions;
■
Periodic review of the control system by the Board of Directors;
■
Audit in accordance with Brazilian and international standards by TIM S.A.
Fair Competition
■
“Antitrust Code of Conduct” approved by the Board of Directors.
■
Antitrust Compliance Program aimed at all employees;
■
Regular training in antitrust matters;
■
Adoption of the "Competition Defense Policy" by TIM S.A.
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Taxonomy
168
Criteria for calculating the required KPIs for eligible and aligned activities
Below are the accounting criteria adopted for calculating the three KPIs required for eligible and aligned
economic activities. The definition of these indicators was carried out in accordance with the provisions of
Annex I of Delegated Regulation (EU) 2021/2178.
KPI
Description
References to the Consolidated
Financial Statements
Turnover
The numerator is the net revenues associated with the sale of Group
products and services related to activities eligible and/or aligned with
the EU Taxonomy, as explained in point 1.1.1 of the Delegated Act.
The denominator is identified by referring to the item “revenues” of the
Consolidated Overall Income Statement as at 2024, drawn up in
accordance with the provisions of accounting standard IAS 1.82(a).
Note 26: Revenues
CapEx
The numerator indicates the share of capital expenses recognized in the
assets of the consolidated financial statements, associated with eligible
activities and defined on the basis of the criteria pursuant to point 1.1.2.2
of the Delegated Act.
The denominator includes increases in tangible and intangible assets
during the year considered before depreciation, amortization,
impairment and any revaluation, including those arising from
restatements and reductions in value and excluding changes in fair
value. The denominator also includes increases in tangible and
intangible assets resulting from business combinations.
Note 5, 6 and 7: Intangible assets
with finite useful life, tangible
assets and rights of use assets
OpEx
The numerator refers to the share of operating expenses associated
with eligible activities and defined based on the criteria set out in point
1.1.3.2 of the Delegated Act. To avoid the risk of double-counting, only
eligible and aligned operating expenses directly linked to economic
activities that meet the Taxonomy criteria were considered.
The denominator shows the total operating expenses quantified based
on the criteria set out in point 1.1.3.1 of the Delegated Act and is the
proportion of direct non-capitalized costs related to research and
development, building renovation measures, short-term rental,
maintenance and repair as well as to any other direct expense related
to the daily maintenance of buildings, plants and machinery of the
Delegated Act.
The OpEx defined by the European
Taxonomy differs from that
indicated in the consolidated
financial statements, since it
includes only the direct costs of
maintaining and repairing tangible
assets, excluding many other
corporate operating expenses. This
aspect makes direct reconciliation
difficult, since these costs can be
distributed across different
accounting items in the
consolidated financial statements.
The data relating to turnover, operating expenses and capital expenses for eligible activities aligned with the
Taxonomy, used for the calculation of performance indicators (KPIs) was extracted from the general
accounting and analytical systems of the Group's consolidated companies. Where it was not possible to break
down the economic amounts in a precise manner, a management estimate was used. Where necessary, the
accounting data has been adjusted to ensure compliance with the IFRS adopted in the TIM Group’s
consolidated financial statements, also applying appropriate consolidation deletions (intercompany
transactions, elimination of internal profits, etc.).
Contextual information on the KPI related to turnover6
With regard to the Turnover KPI, the eligible net revenues of €107,652.48k which contribute to this indicator,
are broken down as follows:
■
Activity 5.3 CE - preparing for reuse of end-of-life products and product components: €567.69k
■
Activity 5.4 CE - sale of second-hand goods: €244k
■
Activity 5.5 CE - rental of mobile devices: €3,736k
■
Activity 8.1 CCM - data processing, hosting, and related activities: €102,926k
■
Activity 4.1. WTR - provision of solutions based on IT/OT (information technology/operational technologies)
data for the reduction of losses: €178.79k
Contextual information on the KPI related to operating expenses7
With regard to the CapEx KPI, capital expenditures and asset increases that form the KPI numerator equal to
€78,799,07k are broken down as follows:
■
Activity 5.1 CCM - construction, expansion and management of water collection, treatment and supply
systems: €250.17k
■
Activity 5.5 CE - rental of mobile devices: €2,757k
■
Activity 7.3. CCM - Installation, maintenance and repair of energy efficiency devices: €176.43k
Report on Operations of the
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Taxonomy
169
6 Del. Reg. 2021/2178 — paragraph 1.2.3.1.
7 Del. Reg. 2021/2178 — paragraph 1.2.3.2
■
Activity 7.5 CCM - Installation, maintenance and repair of tools and devices for measuring, regulating and
controlling the energy performance of buildings: €360.66k
■
Activity 7.6 CCM - installation, maintenance, and repair of renewable energy technologies: €333.90k
■
Activity 8.1 CCM - data processing, hosting, and related activities: €45,922.91k
■
Activity 8.3 CCA - programming and broadcasting activities: €28,998.00k
Contextual information on the KPI related to operating expenses8
With regard to the OpEx KPI, the operating expenses that form the KPI numerator equal to €106,513.63k, are
broken down as follows:
■
Activity 4.1 CCM - power generated by photovoltaic systems: €18,663.65k
■
Activity 4.5 CCM - power generated by hydroelectric systems: €5,415.20k
■
Activity 4.8 CCM - power generated from bioenergy: €4,027.78k
■
Activity 4.30 CCM - power generated from gaseous fossil fuels: €705.60k
■
Activity 5.3 CE - preparing for reuse of end-of-life products and product components: €2,410.14k
■
Activity 5.4 CE - sale of second-hand goods: €300.50k
■
Activity 8.1 CCM - data processing, hosting, and related activities: €74,961.78k
■
Activity 4.1. WTR - provision of solutions based on IT/OT (information technology/operational technologies)
data for the reduction of losses: €28.98k
Report on Operations of the
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Taxonomy
170
8 Del. Reg. 2021/2178 — paragraph 1.2.3.3
Models for fundamental performance indicators (KPIs) of non-financial firms
Model — Share of turnover deriving from products or services associated with economic activities aligned with the taxonomy — Disclosure for the year 2024
2024 financial year
2024
Criteria for substantial contribution
DNSH (“Do No Significant Harm") criteria
Economic activities
Code
Turnover
Turnover share,
2024
Climate change
mitigation
Adaptation to
climate change
Water
Pollution
Circular
economy
Biodiversity
Climate change
mitigation
Adaptation to
climate change
Water
Pollution
Circular
economy
Biodiversity
Minimum
safeguards
Share of
Taxonomy
aligned (A.1)
or eligible
(A.2) turnover
2023
Enabling
activity
category
Transitional
activity
category
Text
€000
%
Yes; No; N/
EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes/No
Yes/No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
%
A
T
A. ACTIVITIES ELIGIBLE FOR TAXONOMY
A.1 Environmentally sustainable activities (taxonomy-aligned)
Turnover of environmentally sustainable activities (taxonomy
aligned) (A.1)
0%
0%
0%
0%
0%
0%
0%
No
No
No
No
No
No
0.023%
Of which enabling
0%
0%
0%
0%
0%
0%
0%
No
No
No
No
No
No
0.023 %
Of which transitional
0%
0%
No
No
No
No
No
No
0 %
A.2 Activities eligible for taxonomy but not environmentally sustainable (activities not taxonomy-aligned)
EL; N/EL
EL; N/EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
4.1.“Provision of solutions based on IT/OT (information
technology/operational technologies) data for the
reduction of losses
WTR 4.1
178.79
0.001 % N/EL
N/EL
EL
N/EL
N/EL
N/EL
5.3 Preparing for reuse of end-of-life products and
product components
CE 5.3
567.69
0.004 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
5.4. Sale of second-hand goods
CE 5.4
244.00
0.002 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
0.01%
5.5. Product-as-a-Service and other service models
geared towards circular use and results
CE 5.5
3,736.00
0.03 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
0.03%
8.1 Data processing, hosting and related activities
CCM/CCA 8.1
102,926.00
0.71 % EL
EL
N/EL
N/EL
N/EL
N/EL
4.31%
Turnover from activities eligible for the taxonomy but not
environmentally sustainable (activities not taxonomy-aligned) (A.2)
107,652.48
0.75 %
0.71 %
0.00 %
0.001 %
0.00 %
0.04 %
0.00 %
5.84%
A. Turnover of activities eligible for the taxonomy (A.1 + A.2)
107,652.48
0.75 %
0.71 %
0.00 %
0.001 %
0.00 %
0.04 %
0.00 %
5.86%
B. ACTIVITIES NOT ELIGIBLE FOR TAXONOMY
Turnover of activities not eligible for taxonomy
14,333,896.52
99.3 %
Total
14,441,549.00
100.0 %
Share of turnover/Total turnover
Aligned with taxonomy by objective
Eligible for taxonomy by objective
CCM
0.00 %
0.71 %
CCA
0.00 %
0.71 %
WTR
0.00 %
0.001 %
CE
0.00 %
0.04 %
PPC
0.00 %
0.00 %
BIO
0.00 %
0.00 %
Report on Operations of the
TIM Group
EU taxonomy
171
Model — Share of capital expenditure (CapEx) deriving from products or services associated with economic activities aligned with the taxonomy — Disclosure relating to the year 2024
2024 financial year
2024
Criteria for substantial contribution
DNSH (“Do No Significant Harm") criteria
Economic activities
Code
CapEx
Share of CapEx,
2024
Climate change
mitigation
Adaptation to
climate change
Water
Pollution
Circular
economy
Biodiversity
Climate change
mitigation
Adaptation to
climate change
Water
Pollution
Circular
economy
Biodiversity
Minimum
safeguards
Share of
CapEx aligned
with (A.1) or
eligible (A.2)
for the
taxonomy,
2023
Enabling
activity
category
Transitional
activity
category
Text
€000
%
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes/
No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
%
A
T
A. ACTIVITIES ELIGIBLE FOR TAXONOMY
A.1 Environmentally sustainable activities (taxonomy-aligned)
CapEx of environmentally sustainable activities (taxonomy aligned)
(A.1)
0%
0%
0%
0%
0%
0%
0%
No
No
No
No
No
No
0.013%
Of which enabling
0%
0%
0%
0%
0%
0%
0%
No
No
No
No
No
No
0.013 %
Of which transitional
0%
0%
No
No
No
No
No
No
0 %
A.2 Activities eligible for taxonomy but not environmentally sustainable (activities not taxonomy-aligned)
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
5.1 Construction, expansion and management of water
collection, treatment and supply systems
CCM/CCA 5.1
250.17
0.01 % EL
EL
N/EL
N/EL
N/EL
N/EL
5.5. Product-as-a-Service and other service models
geared towards circular use and results
CE 5.5
2,757.00
0.10 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
7.3. Installation, maintenance and repair of energy
efficiency devices
CCM/CCA 7.3
176.43
0.01 % EL
EL
N/EL
N/EL
N/EL
N/EL
0.60 %
7.5 Installation, maintenance and repair of tools and
devices for measuring, regulating and controlling the
energy performance of buildings
CCM/CCA 7.5
360.66
0.01 % EL
EL
N/EL
N/EL
N/EL
N/EL
7.6 Installation, Maintenance, and Repair of Renewable
Energy Technologies
CCM/CCA 7.6
333.90
0.01 % EL
EL
N/EL
N/EL
N/EL
N/EL
8.1 Data processing, hosting and related activities
CCM/CCA 8.1
45,922.91
1.61 % EL
EL
N/EL
N/EL
N/EL
N/EL
2.21 %
8.3 Programming and broadcasting activities
CCA 8.3
28,998.00
1.02 % N/EL
EL
N/EL
N/EL
N/EL
N/EL
0.31 %
CapEx of activities eligible for the taxonomy but not environmentally
sustainable (activities not taxonomy-aligned) (A.2)
78,799.07
2.77 %
1.65 %
1.02 %
0.000 %
0.00 %
0.10 %
0.00 %
5.96 %
A. CapEx of taxonomy-eligible for activities (A.1 + A.2)
78,799.07
2.77 %
1.65 %
1.02 %
0.000 %
0.00 %
0.10 %
0.00 %
5.97 %
B. ACTIVITIES NOT ELIGIBLE FOR TAXONOMY
CapEx of activities not eligible for taxonomy
2,769,443.93
97.23 %
Total
2,848,243.00
100.00 %
Share of CapEx/Total CapEx
Aligned with taxonomy by objective
Eligible for taxonomy by objective
CCM
0.00 %
1.65 %
CCA
0.00 %
2.67 %
WTR
0.00 %
0.00 %
CE
0.00 %
0.10 %
PPC
0.00 %
0.00 %
BIO
0.00 %
0.00 %
Report on Operations of the
TIM Group
EU taxonomy
172
Model — Share of operating expenses (OpEx) deriving from products or services associated with economic activities aligned with the taxonomy — Disclosure relating to 2024
2024 financial year
2024
Criteria for substantial contribution
DNSH (“Do No Significant Harm") criteria
Economic activities
Code
OpEx
Share of OpEx,
2024
Climate change
mitigation
Adaptation to
climate change
Water
Pollution
Circular economy
Biodiversity
Climate change
mitigation
Adaptation to
climate change
Water
Pollution
Circular economy
Biodiversity
Minimum
safeguards
Share of OpEx
aligned with
(A.1) or
eligible (A.2)
for the
taxonomy,
2023
Enabling
activity
category
Transitional
activity
category
Text
€000
%
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes; No;
N/EL
Yes/No
Yes/No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
Yes/
No
%
A
T
A. ACTIVITIES ELIGIBLE FOR TAXONOMY
A.1 Environmentally sustainable activities (taxonomy-aligned)
Operating expenses of environmentally sustainable activities
(taxonomy-aligned) (A.1)
0%
0%
0%
0%
0%
0%
0%
No
No
No
No
No
No
0%
Of which enabling
0%
0%
0%
0%
0%
0%
0%
No
No
No
No
No
No
0 %
Of which transitional
0%
0%
No
No
No
No
No
No
0 %
A.2 Activities eligible for taxonomy but not environmentally sustainable (activities not taxonomy-aligned)
EL; N/EL
EL; N/EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
4.1 Power generation by solar and photovoltaic technology
CCM/CCA 4.1
18,663.65
1.32 % EL
EL
N/EL
N/EL
N/EL
N/EL
0.78%
4.1.“Provision of solutions based on IT/OT (information
technology/operational technologies) data for the
reduction of losses
WTR 4.1
28.98
0.002 % N/EL
N/EL
EL
N/EL
N/EL
N/EL
4.30 Mitigation High-performance cogeneration of heat/
cold and electricity from gaseous fossil fuels
CCM/CCA
4.30
705.60
0.05 % EL
EL
N/EL
N/EL
N/EL
N/EL
4.5 Power generation from hydropower
CCM/CCA 4.5
5,415.20
0.38 % EL
EL
N/EL
N/EL
N/EL
N/EL
0.33%
4.8 Power generation from bioenergy
CCM/CCA 4.8
4,027.78
0.29 % EL
EL
N/EL
N/EL
N/EL
N/EL
0.16%
5.3 Preparing for reuse of end-of-life products and product
components
CE 5.3
2,410.14
0.17 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
5.4. Sale of second-hand goods
CE 5.4
300.50
0.02 % N/EL
N/EL
N/EL
N/EL
EL
N/EL
8.1 Data processing, hosting and related activities
CCM/CCA 8.1
74,961.78
5.31 % EL
EL
N/EL
N/EL
N/EL
N/EL
11.44%
Operating expenses of activities eligible for the taxonomy but not
environmentally sustainable (activities not taxonomy-aligned) (A.2)
106,513.63
7.55 %
7.35 %
0.00 %
0.002 %
0.00 %
0.19 %
0.00 %
12.71%
A. OpEx of taxonomy-eligible activities (A.1 + A.2)
106,513.63
7.55 %
7.35 %
0.00 %
0.002 %
0.00 %
0.19 %
0.00 %
12.71%
B. ACTIVITIES NOT ELIGIBLE FOR TAXONOMY
Operating expenses of activities not eligible for taxonomy
1,305,043.37
92.45 %
Total
1,411,557.00
100.00 %
Report on Operations of the
TIM Group
EU taxonomy
173
Share of OpEx/Total OpEx
Aligned with taxonomy by objective
Eligible for taxonomy by objective
CCM
0.00 %
7.35 %
CCA
0.00 %
7.35 %
WTR
0.00 %
0.002 %
CE
0.00 %
0.19 %
PPC
0.00 %
0.00 %
BIO
0.00 %
0.00 %
Report on Operations of the
TIM Group
EU taxonomy
174
Model 1 - Nuclear and fossil gas related activities
Line
Activities related to nuclear energy
1
The company carries out, finances or has exposure to research, development,
demonstration and construction of innovative plants for the generation of electrical
energy that produce energy from nuclear processes with a minimum amount of waste
from the fuel cycle.
No
2
p
y
,
p
operation of new nuclear plants for the generation of electrical energy or process heat,
also for district heating purposes or for industrial processes such as the production of
hydrogen, and improvements to their safety, with the aid of the best available
technologies.
No
3
The company carries out, finances or has exposure to the safe operation of existing
nuclear plants that generate electrical energy or process heat, including for district
heating or for industrial processes such as the production of hydrogen from nuclear
energy, and improvements in their safety.
No
Activities related to fossil gases
4
The company carries out, finances or has exposure to the construction or management
of plants for the production of electricity that use gaseous fossil fuels.
No
5
The company carries out, finances or has exposure to the construction, redevelopment
and management of combined heat/cold and electricity generation plants that use
gaseous fossil fuels.
Yes
6
The company carries out, finances or has exposure to the construction, redevelopment
and management of heat generation plants that generate heat/cold using gaseous
fossil fuels.
No
Report on Operations of the
TIM Group
EU taxonomy
175
Model 2 - Economic activities aligned with the taxonomy (denominator)
Line
Economic activities
Turnover
CapEx
OpEx
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
1
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.26 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable
KPI
2
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.27 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable
KPI
3
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.28 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable
KPI
4
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.29 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable
KPI
5
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.30 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable
KPI
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
6
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.31 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable
KPI
7
Amount and share of other economic
activities aligned with the taxonomy not
included in lines 1 to 6 in the denominator of
the applicable KPI
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
8
Total applicable KPI
14,441,549.00
100 %
14,441,549.00
100 %
14,441,549.00
100 %
2,848,243.00
100 %
2,848,243.00
100 %
2,848,243.00
100 %
1,411,557.00
100 %
1,411,557.00
100 %
1,411,557.00
100 %
Report on Operations of the
TIM Group
EU taxonomy
176
Model 3 - Economic activities aligned with the taxonomy (numerator)
Line
Economic activities
Turnover
CapEx
OpEx
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
1
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.26 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the numerator of the applicable
KPI
2
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.27 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the numerator of the applicable
KPI
3
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.28 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the numerator of the applicable
KPI
4
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.29 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the numerator of the applicable
KPI
5
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.30 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the numerator of the applicable
KPI
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
6
Amount and share of economic activity aligned
with the taxonomy referred to in section 4.31 of
Annexes I and II of delegated regulation (EU)
2021/2139 in the numerator of the applicable
KPI
7
Amount and share of other economic
activities aligned with the taxonomy not
included in lines 1 to 6 in the numerator of the
applicable KPI
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
8
Total amount and share of economic activities
aligned with the taxonomy in the numerator
of the applicable KPI
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
Report on Operations of the
TIM Group
EU taxonomy
177
Model 4 — Eligible economic activities not aligned with the taxonomy
Line
Economic activities
Turnover
CapEx
OpEx
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM+CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
1
Amount and share of economic activity eligible for
but not aligned with the taxonomy referred to in
section 4.26 of Annexes I and II of delegated
regulation (EU) 2021/2139 in the denominator of the
applicable KPI
2
Amount and share of economic activity eligible for
but not aligned with the taxonomy referred to in
section 4.27 of Annexes I and II of delegated
regulation (EU) 2021/2139 in the denominator of the
applicable KPI
3
Amount and share of economic activity eligible for
but not aligned with the taxonomy referred to in
section 4.28 of Annexes I and II of delegated
regulation (EU) 2021/2139 in the denominator of the
applicable KPI
4
Amount and share of economic activity eligible for
but not aligned with the taxonomy referred to in
section 4.29 of Annexes I and II of delegated
regulation (EU) 2021/2139 in the denominator of the
applicable KPI
5
Amount and share of economic activity eligible for
but not aligned with the taxonomy referred to in
section 4.30 of Annexes I and II of delegated
regulation (EU) 2021/2139 in the denominator of the
applicable KPI
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
0.00
0 %
6
Amount and share of economic activity eligible for
but not aligned with the taxonomy referred to in
section 4.31 of Annexes I and II of delegated
regulation (EU) 2021/2139 in the denominator of the
applicable KPI
7
Amount and share of other economic activities
eligible for but not aligned with the taxonomy not
included in lines 1 to 6 in the denominator of the
applicable KPI
102,926.00
100 % 102,926.00
100 %
0.00
100 %
76,042.07
100 %
47,044.07
100 %
28,998.00
100 %
103,774.01
100 %
103,774.01
100 %
0.00
100 %
8
Total amount and share of economic activities
eligible for but not aligned with the taxonomy in the
denominator of the applicable KPI
102,926.00
100 % 102,926.00
100 %
0.00
100 %
76,042.07
100 %
47,044.07
100 %
28,998.00
100 %
103,774.01
100 %
103,774.01
100 %
0.00
100 %
Report on Operations of the
TIM Group
EU taxonomy
178
Model 5 — Economic activities not eligible for taxonomy
Line
Economic activities
Turnover
CapEx
OpEx
Amount
Percentuale
Amount
Percentuale
Amount
Percentuale
1
Amount and share of economic activity referred to in line 1 of model 1 that is not eligible for the
taxonomy in compliance with section 4.26 of Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable KPI
2
Amount and share of economic activity referred to in line 2 of model 1 that is not eligible for the
taxonomy in compliance with section 4.27 of Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable KPI
3
Amount and share of economic activity referred to in line 3 of model 1 that is not eligible for the
taxonomy in compliance with section 4.28 of Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable KPI
4
Amount and share of economic activity referred to in line 4 of model 1 that is not eligible for the
taxonomy in compliance with section 4.29 of Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable KPI
5
Amount and share of economic activity referred to in line 5 of model 1 that is not eligible for the
taxonomy in compliance with section 4.30 of Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable KPI
0.00
0 %
0.00
0 %
0.00
0 %
6
Amount and share of economic activity referred to in line 6 of model 1 that is not eligible for the
taxonomy in compliance with section 4.31 of Annexes I and II of delegated regulation (EU)
2021/2139 in the denominator of the applicable KPI
7
Amount and share of other economic activities not eligible for the taxonomy not included in
lines 1 to 6 in the denominator of the applicable KPI
14,333,896.52
100 %
2,769,443.93
100 %
1,305,043.37
100 %
8
Total amount and share of economic activities not eligible for the taxonomy in the denominator
of the applicable KPI
14,333,896.52
100 %
2,769,443.93
100 %
1,305,043.37
100 %
Report on Operations of the
TIM Group
EU taxonomy
179
Climate Change [ESRS E1]
E1- Strategy
Disclosure Requirement E1-1 – Transition plan for climate change mitigation
[17]: The TIM Group, leader in telecommunications and ICT solutions in Italy and Brazil, intends to promote
technological innovation and responsible digitalization, contributing to the well-being of people and
communities. This approach is part of a framework that takes advantage of the opportunities of low-impact
technologies and the circular economy, while helping to reduce the risks and impacts associated with climate
change and the rapid increase in voice and data traffic, a phenomenon typical of the ICT sector.
In this scenario, the Group’s environmental strategy focuses on the progressive decarbonization of its
activities and those related to the supply chain, both in Italy and Brazil, through levers that include: the
adoption of innovative technologies and resilient assets that guarantee high performance and the
containment of energy consumption; the complete use of renewable energy, also through investment in self-
production plants and in distributed generation projects; the promotion of circular models to reduce waste; the
purchase of solutions and products with a certified carbon footprint.
2023 and 2024 were years of significant discontinuity in the measurement of the company's emissions. In
2023, TIM made a significant effort to improve the Scope 3 calculation methodology, which produced more
reliable results, but at the same time, made it impossible to compare the emission performance with those of
previous years.
Furthermore, on July 1, 2024, the completion of TIM’s delayering plan through the sale of fixed network
infrastructure assets to Kohlberg Kravis Roberts & Co. L.P. (“KKR”) determined not only a different corporate
structure, but also a significant change in the operating perimeter in terms of consistency of both
infrastructure assets and personnel.
These significant changes in the company's structure and activities not only no longer allow the comparison of
emission performance with those of previous years, requiring a new starting point from which to calculate
progress, but they also affect the Group's decarbonization process, making it necessary to define a new
Transition Plan. This will also involve a new validation of environmental objectives by the SBTi as required by
the institution's recommendations in such cases.
However, the new structure of the company does not change the long-term strategic direction in
environmental matters undertaken five years ago. In fact, as early as 2020, the Group identified specific long-
term environmental targets aimed at ensuring the transition to a low carbon economy, such as the target of
“100% purchase of renewable energy” to be reached by 2025 and “Carbon Neutrality” target, which, in
addition to the mitigation of Scopes 1 and 2, also includes the use of neutralization actions for residual
emissions to be reached by 2030.
In 2022, to accelerate the process of reducing greenhouse gas emissions, TIM also included in the ESG Plan the
“Net zero” target by 2040 and an intermediate target relating to the reduction of supply chain emissions
(deriving from the acquisition of goods and services and the use of the products sold) by 2030.
In the same year, the climate strategy was validated by the Science Based Targets initiative (SBTi), which
confirmed its consistency with the objective of keeping global warming under 1.5°C, as established by the Paris
Agreement on climate change.
On this occasion, the TIM Group committed itself to reducing absolute Scope 1 and 2 GHG emissions by 75% by
2030 compared to the 2019 reference year, in addition to confirming the supply of 100% renewable electricity
by 2025 and the intermediate target relating to the reduction of supply chain emissions.
The announced commitments take into account the SBTi Criteria and Recommendations (version 4.2, April
2021), and have been defined on the basis of a structured transition plan to guarantee an annual emission
reduction percentage in order to maintain the 1.5°C commitment.
Also in the 2025-27 Strategic Plan, TIM confirmed all the previous main emission targets, inserting a new
intermediate target that consists in the drafting of a new transition plan for the 2025-2030 five-year period and
which will have to set the decarbonization levers to be put in place in order to achieve the long-term
environmental targets.
The plan will be presented and approved by the Group BOD in time for the 2025 Report. Starting from an
assessment of the Company's current situation, including the analysis of risks and opportunities related to
sustainability, the plan will contain evidence of the measures and initiatives necessary to achieve the long-
term targets for decarbonization, as well as a rough indication of the indicators to measure progress and the
financial, human and technical resources necessary for the implementation of the plan.
Disclosure Requirement SBM-3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
[E1 SBM-3, 18]: In relation to the material risks connected to climate change that have been identified through
the double materiality analysis, the following are the risks divided between transition risks and physical risks
related to the climate.
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Transition risks
■
The inability to effectively involve “suppliers in the reduction of emissions can cause the failure to achieve the
climate objectives, with an impact on economic and financial results as well as reputational damage”
■
“Regulatory changes to energy and environmental policies may affect the profitability of energy efficiency
actions and the use of renewable sources, with a possible increase in compliance costs”
Physical risks
■
“Extreme weather events due to climate change can create discontinuity in business activities, damage
infrastructure and consequently affect the company's economic and financial flows”.
[E1 SBM-3, 19 a]: The TIM Group assesses the resilience of its strategies regarding climate change through the
analysis of physical and transition risks, involving Fibercop and all suppliers undergoing ESG assessments.
The Enterprise Risk Management process identifies and assesses risks related to rising temperatures and
extreme weather events in the short, medium and long term, as further detailed in the IRO-1 disclosure
requirement "Description of the process to identify and assess material impacts, risks and opportunities," to
which reference is made for detail.
In addition, the Enterprise Risk Management function, in collaboration with the Sustainability function, has
developed a methodology for the assessment and monitoring of ESG risks with an approach based on Key
Risks. For risks that are judged as strategic, the assessment uses a probabilistic framework supplemented by
statistical-mathematical models to measure risks at both the individual factor and portfolio levels, considering
correlations among them. The results provide probability distributions over multiple scenarios and a view of the
economic impact in the worst (5th percentile) and best (95th percentile) scenarios.
Climate risks, both transitional and physical, are assessed against climate trends to identify potential business
risks and opportunities that may have a financial or strategic impact for the organization in the short, medium,
and long term.
The climate changes recorded in recent years have generated extreme weather situations, including intense
rain phenomena (flash floods) and storms with strong winds. The nationwide distribution of assets thus
exposes the company to possible direct and indirect damage. In order to assess the potential damage to assets
and manage their risks, TIM uses specific tools (for example CLIMADA) to assess the risk profile of the plants
and to monitor their evolution over time. On plants considered strategic or critical, in addition to desk
evaluations, on-site analyses are also carried out.
The company also conducts periodic probabilistic analyses to estimate the potential direct loss (damage to
assets) deriving from the occurrence of adverse weather phenomena such as storms/floods/rivers bursting
their banks, also in order to assess the transfer of this risk to the insurance market.
The Company has conducted specific risk analyses taking into consideration two scenarios aligned with
keeping global temperature below 1.5°C, from among those proposed by the “Network for Greening the
Financial System, (NGFS) (see disclosure requirement E1 IRO-1 “Description of processes to identify and assess
material climate-related impacts, risks, and opportunities” where the narratives, time horizons, parameters
used, key forces and drivers of each scenario, and key inputs and constraints of the scenarios are provided).
In order to ensure the continuity of the services provided and limit damage, the Company implements specific
risk prevention actions such as flood protection systems, the geographical location of the plants and their
redundancy.
Scenario-based risk analyses assess both the direct impact on assets (buildings and their technological
content) and the potential damage deriving from the interruption of the service, with effects on the reduction
of revenues and indirect damages related to the repercussions on end customers (claims).
Analyses on the estimation of climate change impacts (acute and chronic risks) do not currently take into
account lightning and coastal flooding risks.
[E1 SBM-3, 19 b]: In conjunction with the establishment of the Strategic Plan, the TIM Group also cyclically
initiates climate risk scenario analysis to support resilience strategies.
The latest available update is the one relating to the 2024-26 Plan carried out through the use of the
simulation tool CLIMADA, which makes it possible to evaluate the economic risk associated with the risks of
natural disasters such as earthquakes, floods, landslides, fires and extra-tropical storms, using numerous input
data.
In a context of strong climate change, the use of risk assessment tools becomes crucial to allow companies to
identify, quantify, and manage the risks associated with natural catastrophic events. That is why TIM decided
to use one of the most advanced and widely used tools for this purpose. CLIMADA is an open-source model
developed by the Swiss Center of Expertise for Climate Change Research and Disaster Prevention (C2SM) and
the Center for Climate Risk and Resilience (OCCR) that enables the calculation of the probability and potential
impact of natural catastrophic events, providing a scientific basis for climate-related risk assessment and
management. With CLIMADA, TIM aims to improve its ability to calculate the probability of natural disasters, to
assess their potential impact, to improve adaptation and mitigation strategies and to guide decisions regarding
insurance coverage. The process of customizing this tool involves several phases including: data collection/
analysis and adaptation to the TIM context; the simulation of the different scenarios; strategic planning and
optimization of risk transfer plans to the insurance market.
In reference to mitigation actions and related resources put in place, see Environmental Information -
disclosure requirement E1-3 “Actions and resources related to climate change policies”.
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[E1 SBM-3, 19 c]: The resilience analyses carried out in the field of climate change help define the Group’s
action plans and, if necessary, cover residual risks through specific insurance coverage.
Below are the four main areas of action of the TIM Group identified by the ERM model to support risk
mitigation and to seize opportunities related to climate change.
Products and services
The TIM Group:
■
makes investments in ultra-broadband connectivity, to reduce the digital divide;
■
develops and markets digital solutions that enable the ecological transition, such as cloud computing,
smart working, telemedicine and smart agriculture.
The adoption of the cloud, in particular, makes it possible to optimize resources and reduce energy
consumption, becoming one of the strategic levers for digitalization and economic development, as
highlighted in the DESI Report on the digital transformation of Italy. For this reason, TIM has reinforced its
commitment to the growth of the cloud business, focusing on scalable, secure and sustainable solutions.
Supply chain
TIM collaborates with suppliers to develop products with a low energy impact that allow customers to reduce
their carbon footprint. This commitment is reflected in the following initiatives:
■
insertion of ESG parameters and certifications related to the carbon footprint in the context of tenders for
new products and services;
■
integration and verification of environmental aspects in supplier audits, conducted as part of the Joint
Alliance for CSR;
■
escalation and follow-up procedures for non-compliant suppliers on aspects such as waste management,
use of hazardous substances, energy consumption and regulatory compliance.
Investments in research and development
TIM invests in the search for innovative solutions that can improve energy efficiency, reduce emissions,
promote the circular economy and environmental sustainability to consolidate the role of digitalization in the
ecological transition, improving the quality of life through innovative resource management models.
Operations
TIM plans actions aimed at reducing the emission impact of its network infrastructure elements and data
centers through the use of innovative technologies that allow improved performance with the same energy
resources.
Without prejudice to the long-term direction of the Group’s environmental strategy, the Company annually
reviews the consistency of the adopted business model and evaluates any changes, with respect to the
evolution of the climate scenario, through a review of the decarbonization levers.
Impact, risk, and opportunity management
Disclosure Requirement E1-2 – Policies related to climate change mitigation and
adaptation
[24], [MDR-P, 65 a]: The aspects of the IROs that emerged as significant from the dual relevance analysis for
the topic “Climate Change” are covered in the policy “Commitment to environmental sustainability in the TIM
Group”, in the “Product and Service Procurement Policy” and in the ”Code of Ethics and Conduct of the TIM
Group”.
All policies are linked to the following material impacts, risks and opportunities that emerged from the double
materiality analysis:
Positive impact
■
“Artificial intelligence and digital technologies allow better management of projects with a significant impact
on the environment, such as the monitoring of environmental parameters (e.g. smart cities, smart
agriculture) and the management of early warning systems”.
Negative impacts
■
“The construction and use of infrastructures (e.g. data centers) requires a high consumption of energy that
can increase emissions with consequences on climate change”;
■
“The use of fossil energy sources helps to increase emissions with consequences on climate change”.
■
“The greater computing and data processing power required by the use of AI and digital technologies in
business processes can increase energy consumption and the carbon footprint of the company or supply
chain, affecting climate change”;
■
“The investments in infrastructures and the purchase of energy necessary for 5G, fiber optics and the cloud
can affect climate change”.
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Risks
■
“The inability to effectively involve “suppliers in the reduction of emissions can cause the failure to achieve
the climate objectives, with an impact on economic and financial results as well as reputational damage”;
■
“Extreme weather events due to climate change can create discontinuity in business activities, damage
infrastructure and consequently affect the company's economic and financial flows”;
■
“Regulatory changes to energy and environmental policies may affect the profitability of energy efficiency
actions and the use of renewable sources, with a possible increase in compliance costs”.
The “Commitment to environmental sustainability in the TIM Group” Policy has the following main
objectives:
■
Ensure full compliance with current environmental laws and regulations;
■
Adopt management systems and procedures that promote greater energy and resource efficiency and a
lower emissive impact in infrastructure management, also thanks to advanced technologies that consider
environmental sustainability aspects;
■
Reduce greenhouse gas emissions through the adoption of environmentally sustainable technologies and
the use of renewable energy; this includes both direct emissions (coming from its operations) and indirect
emissions (related to energy purchased and used);
■
Progressively reduce the consumption of energy deriving from fossil fuels, promoting the increasing use of
energy from renewable sources;
■
Invest in the development of low-carbon solutions, products and services, contributing to the energy
transition towards a low-carbon economy;
■
Choose suppliers and partners based on environmental sustainability criteria;
■
Identify and evaluate the environmental risks of its supply chain, in collaboration with its suppliers and also
through partnerships at national and international levels, taking appropriate corrective actions and
implementing improvement plans to reduce the environmental impact of the products and services
purchased.
The TIM Group also recognizes its role and responsibilities with regard to the UN Sustainable Development
Goals, committing itself to applying policies, initiatives and behaviors consistent with the provisions, among
others, of the objectives:
■
SDG 7: ensure access to clean, cheap and sustainable energy for all;
■
SDG 9: promote sustainable investments in the infrastructures necessary for the dissemination of
communication technologies;
■
SDG 11: disseminate the smart city model to make cities inclusive, safe, resilient and sustainable;
■
SDG 12: promote efficiency in the use of resources and energy;
■
SDG 13: act quickly to combat climate change and its impacts.
The "Product and Service Procurement Policy" defines the objectives and general principles of the TIM
Group's purchasing process, including regulatory, contractual and control guidelines, and procurement
commitments to environmental and social responsibility. Regarding IROs relevant to "Climate Change", the
policy promotes environmental protection by valuing technical operational solutions in the procurement
process that minimize impacts on the ecosystem. During the contracting phase, it is necessary to ensure that
the parties' environmental obligations and responsibilities are clearly defined, with the goal of continuous
improvement and alignment with industry best practices.
The “Code of Ethics and Conduct” guides TIM's actions in carrying out its business, in the belief that a
common vision of ethics in the daily conduct of business is the essential prerequisite for responsible and
sustainable growth. Specifically, the document includes:
■
the distinguishing values of the Group's culture;
■
the rules of ethical behavior for people in the Group and the guidelines for the conduct to be pursued in
dealings with third parties;
■
the objectives and good practices relating to sustainability and social responsibility, in order to conduct
business activities in a way that safeguards the various aspects of the environmental, social and
governance-related affairs of the Group;
■
the methods of complying with the Code through the description of the commitment of corporate boards
and management teams, as well as the approach to managing violations, whistleblowing, and the
methods of disseminating and adopting of the document.
In relation to the IROs material to the subject of “Climate Change”, the document highlights TIM’s
commitment to:
■
Promote the energy transition, developing the business with the utmost respect for the environment, the
rights of future generations and the applicable reference regulations;
■
Reduce the negative impacts on the ecosystem that may be generated by activities, through the offering
of services and solutions that promote new sustainable lifestyles.
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To contextualize the Group’s policies in the Brazilian business context, TIM S.A. has also defined the “Climate
Change Management” policy that addresses the aspects of climate change adaptation and mitigation,
energy efficiency and renewable energy. The policy aims to establish the principles to be applied in business
activities to ensure the correct and efficient management of greenhouse gas emissions in accordance with
current legislation, regulatory agencies and Group guidelines.
All indicated policies are subject to a constant monitoring process in order to ensure the constant pursuit of the
principles and contents mentioned therein.
[24], [MDR-P, 65 b]: The “Commitment to Environmental Sustainability” Policy is valid at the Group level. In
particular, the recipients of the document are all the Italian and foreign TIM Group companies, the TIM
Foundation, Instituto TIM, the operating structures and corporate departments whose business may also have
potentially significant impacts on the environment.
The Product and Service Procurement Policy is valid for all Group Companies and is directly applicable to
purchases made by the Procurement Department, the purchasing functions, the function.
The Code of Ethics and Conduct applies to all people in the Group, with particular reference to the members of
the Corporate Boards, management, employees of all Group Companies, external collaborators, and, where
required by the company's procedural system, to third parties in business relationships with the Group.
[24], [MDR-P, 65 c]: The implementation of the “Commitment to Environmental Sustainability” Policy is
entrusted to the head of the Corporate Communication and Sustainability Department who reports directly to
the Chief Executive Officer.
The implementation of the ‘Product and Service Procurement Policy’ is guaranteed: by the Procurement
Department in all its branches and responsibilities; by the Chief Financial Office Department that ensures, at
the Group level, the oversight of financial, administrative and economic-management processes; by the Legal
and Tax Department that ensures, at the Group level, legal protection, corporate compliance and the
application of the governance model, as well as, the definition of tax policies.
The adoption of the Code of Ethics and Conduct was decided by a resolution of the TIM Board of Directors on
March 15, 2023. A periodic review of the Code is also carried out to implement any necessary updates.
[24], [MDR-P, 65 d]: The “Commitment to Environmental Sustainability” Policy is in line with the main
international reference standards such as ISO 14001, ISO 14064, ISO 50001 and the GHG Protocol.
For the “Product and Service Procurement” Policy, the external references are:
•
Italian Legislative Decree 231/01 of 8/06/2001 - Regulations governing the administrative responsibility
of legal persons, companies and associations with no legal status. (DC-2018-00498);
•
Italian Legislative Decree 196/2003 - Data Protection Law. Data Protection Law (DC-2018-00069) and
the Regulation (EU) 2016/679 General Data Protection Regulation (so-called. ‘GDPR’), (DC-2018-00235);
•
Presidential Decree 313/2002 Consolidated text of the legislative and regulatory provisions on criminal
records, the register of administrative sanctions imposed due to a crime and related pending charges.
(DC-2018-00559);
•
Italian Legislative Decree 81/2008 - Consolidated Law on the protection of health and safety in the
workplace and subsequent amendments. (DC-2018- 00556);
•
Italian Legislative Decree 152/2006 ‘Consolidated Law on the Environment’, as amended (DC-2018-
00377);
•
Consob Resolution no. 17221 of 12.3.2010-Regulation containing provisions on related-party
transactions (DC-2018-00468);
•
Italian Law no. 262 of December 28, 2005 - ‘Provisions for the protection of savings and the regulation
of financial markets’ (DC-2018-00585). With regard to the Product and Service Procurement Policy, TIM
operates within the framework of the Joint Alliance for Corporate Social Responsibility — JAC initiative
(http://jac-initiative.com) of which the Group is a founding member. (1) JAC is a collective of
telecommunications companies that aim to promote safe and fair working conditions, as well as
responsible business, social and environmental management.
The Code of Ethics and Conduct is in line with the principles of the United Nations Global Compact with which
TIM complies.
[24], [MDR-P, 65 e]: The Group policies specifically take into account aspects identified as being fundamental
and high priority by analyses conducted internally and with external stakeholders. These aspects are strongly
linked to the operations of the TIM Group Companies.
[24], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents
available to its stakeholders on its corporate intranet and on the Group's company website www.gruppotim.it,
in compliance with “least privilege” and “need to know” principles. Where appropriate, for relations with third
parties, specific contractual clauses will be added relating to the acceptance and/or compliance with some of
the documents, such as the Code of Ethics.
Information on TIM S.A.’s Policies, on the other hand, can be found on its institutional website https://
ri.tim.com.br in the dedicated “Regulations and Policies” section.
[25]: In TIM’s “Commitment to Environmental Sustainability” policy, TIM reaffirms its commitment to:
■
Mitigation of climate change, with the objective of reducing or preventing greenhouse gas emissions to
limit the magnitude of global warming. In line with the Policy, TIM defines long-term emission reduction
targets in the business plan, promotes actions that reduce the amount of greenhouse gases and selects its
suppliers and partners also based on environmental sustainability criteria;
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■
Adaptation to climate change, with the aim of reducing the vulnerability of the ecosystem to extreme
weather events. With this in mind, TIM envisages measures to ensure the operational continuity of its
infrastructures in the face of risks deriving from extreme weather events;
■
Energy efficiency, implementing measures to improve the energy efficiency of its infrastructures and
operations, thanks to the adoption of advanced technologies and sustainable management practices;
■
The spread of renewable energy, promoting the use of sustainable energy sources in its operations and
supply chain.
In the "Product and Service Purchasing" policy, TIM emphasizes, among the different phases of the purchasing
process, the supplier qualification phase that also focuses on ESG aspects and the verification phase on
contract execution where checks are made on the compliance of the specifications included in them with
effects on the Vendor Rating index. Both phases are aimed at acquiring and retaining suppliers that contribute
to climate change mitigation through the application of sustainable practices
Disclosure Requirement E1-3 – Actions and resources in relation to climate change
policies
[28], [MDR-A, 68 a,b,c,d,e], [29 a] [MDR-A, 69 b, c], [29 c i,ii,iii], [16 c]: In addition to the climate change policies
that provide the framework for the coherent and informed management of business activities, the Group
implements actions and resources related to the mitigation of and adaptation to climate change and energy
focused on:
1.
use of energy from renewable sources;
2.
reduction of energy and fuel consumption;
3.
low-emission transport;
4.
decarbonization of the supply chain;
5.
additional emission mitigation initiatives.
The actions are aimed at various civil (such as offices) and industrial (such as Data Centers) business assets
both in Italy and in Brazil, and involve internal operations and the value chain, especially in terms of the supply
of electricity and the development of technological solutions for customers that make it possible to reduce
emissions.
Although the TIM Group does not have a formal climate transition plan, the actions taken are consistent with
strategies to reduce energy consumption and CO₂ emissions.
1.
Use of energy from renewable sources
The actions described below in relation to 2024 aim to increase the use of renewable energy sources in order to
reduce and mitigate the following impact of the company identified by the double materiality analysis: “The
use of fossil energy sources helps to increase emissions with consequences on climate change”.
Domestic BU
■
Acquisition of guarantees of origin (GO) with attention paid to the use of Power Purchase Agreements
(PPA). At the end of 2024, 84% of the total energy supply comes from renewable sources. The goal is to
reach 100% by 2025. The financial resources committed to the budget in 2024 for the purchase of GO
amounted to: OpEx approx. €911.00k;
■
Self-generation of electricity from photovoltaic systems
•
the plant at the West Milan data center produced more than 520 MWh;
•
the photovoltaic system at the West Turin data center has been completed and will begin producing
renewable energy as from 2025.
TIM S.A.
■
Use of totally renewable energy since 2021;
■
Supply of the TIM grid with electricity generated from renewable sources. By the end of 2024, more than
60% of the energy used by the Company will come from the Company's own renewable power generation
projects. The energy is produced by small power plants in order to optimize operational management and
reduce greenhouse gas emissions. TIM S.A. has 129 active plants producing renewable energy, of which 113
are solar photovoltaic, followed by 14 hydroelectric and 2 with bioenergy;
■
Installation of 134 solar-powered antennas in remote and hard-to-reach areas, ensuring connectivity in
vulnerable regions and strengthening adaptation to the climate scenario.
Carrying out this activity involved the use of the following financial resources: OpEx €18,663.65k referred to
taxonomic activity 4.1 "Power generation by solar and photovoltaic technology"; OpEx €5,415.20k referred to
taxonomic activity 4.5 "Power generation from hydropower"; OpEx €4,027.78k referred to taxonomic activity
4.8 "Power generation from bioenergy".
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These actions reflect the company’s strategy to diversify its energy sources and reduce dependence on the
conventional grid, promoting greater energy resilience and mitigating risks associated with climate change.
2.
Reduction of energy and fuel consumption
The actions described below aim to improve energy efficiency thanks to the use of technologies that allow
better performance in order to reduce and mitigate the significant negative impacts identified by the double
materiality analysis:
■
“The construction and use of infrastructures (e.g. data centers) requires a high consumption of energy that
can increase emissions with consequences on climate change”;
■
“The investments in infrastructures and the purchase of energy necessary for 5G, fiber optics and the cloud
can affect climate change”;
■
“The greater computing and data processing power required by the use of AI and digital technologies in
business processes can increase energy consumption and the carbon footprint of the company or supply
chain, affecting climate change.
Domestic BU
Data Center
In Italy, the TIM Group has 16 data centers in 8 cities that guarantee the highest levels of operation, security
and energy efficiency, divided as follows:
■
7 x Core data centers offering maximum-performance cloud and co-location services;
■
6 x public cloud data centers where the platforms of the most important public cloud providers operate;
■
3 Service Centers i.e., secure and reliable micro-data centers near customer locations.
Below are the efficiency actions carried out in 2024.
■
Extraordinary or evolutionary maintenance consisting of:
•
repair of industrial components and auxiliary services such as:
–
relamping, free cooling in the North Rome and South Rome DCs;
–
Replacement of sensors, replacement of air conditioners in the South Rome DC.
•
Technological refresh due to obsolescence with the installation of:
–
4 refrigerator units distributed in the West Rome, South Milan and South Rome data centers;
–
air conditioners in the Padua data center;
–
Uninterruptible power supplies (UPS) in the Bologna and South Milan data centers and batteries in
the South Milan data center.
The above maintenance work involved the use of: CapEx €176.43k, referring to the taxonomic activity 7.3
"Installation, maintenance and repair of energy efficiency devices."
■
Installation, maintenance and repair of tools and devices for measuring, regulating and controlling the
energy performance of buildings. Specifically, the installation involved:
•
sensors monitoring the remaining autonomy of uninterruptible power supplies (UPS) at the East Milan
site;
•
temperature and humidity detection probes at the South Rome site;
•
sensors for monitoring temperature in building management systems (BMS) and cooling units (CU) at
the West Milan site;
•
energy meters at the West Rome site for activities related to the National Strategic Hub.
These actions involved the use of: CapEx €360.66k, attributable to taxonomic Activity 7.5 “Installation,
maintenance and repair of tools and devices for measuring, regulating and controlling the energy performance
of buildings”.
There are also 7 high-efficiency cogeneration (CAR) plants for heat/cooling and power generation at five
locations in 2024: West Rome, South Rome, Bologna, Padua, South Milan.
Carrying out this activity involved the use of the following financial resources: OpEx €705.60k, attributable to
taxonomic activity 4.30 “High-efficiency cogeneration of heat/cool and electricity from gaseous fossil fuels”.
In 2024, all efficiency actions led to an energy saving of 0.59 GWh/year, an average PUE9 (Power Usage
Efficiency) of 1.52 out of the total number of Core data centers (an improvement compared to 2023 equal to
1.56) and an average 1% deviation from the project PUE of Public Cloud data centers10.
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9 It is the ratio of the total energy consumed by the data center to the energy used specifically by IT equipment. The closer the value of PUE is to 1,
the more energy efficient the data center is
10 The PUE varies depending on the power engaged by the equipment and the external climatic conditions. Public Cloud data centers are designed
with a project PUE of <1.3 at full load. Therefore, with a minimum threshold of 1, the more the data center is filled with IT equipment, the closer it
will approach a value near 1.3. In this case, with a Public Cloud data center fill rate between 20% and 30%, the deviation from the project PUE is 1%.
TIM Stores
The TIM network has 653 stores dedicated exclusively to the marketing of TIM fixed-line and mobile offers,
including 206 directly owned TIM Retail, 300 franchised and 147 single brand. Below are the actions carried out
at the stores in 2024.
■
Energy efficiency of TIM Retail stores:
•
relamping: replacement of halide light fixtures with LED panels with an estimated energy saving of
about 3,010 kWh/year per store. The actions affected 10 stores, adding to the previous 29 in 2023;
•
building automation: installation of devices for remote monitoring and control of lights, air
conditioning, storefronts, signs, and monitors, with alarms for out-of-threshold parameters and remote
controls (work done on 5 stores);
•
energy monitoring: sample monitoring of energy consumption to identify improvement actions
(interventions carried out on 6 stores).
The actions are part of an energy efficiency project that involved a total of 50 stores (39 for the relamping
project, 5 for automation building project, 6 for consumption monitoring project) and that in 2024, generated a
15% energy saving compared to 2023, or 152,330 kWh/year.
■
New TIM store layout (Blue Vision Project).
The project involves the entire sales network and aims to reconcile the brand positioning with environmental
sustainability, acting on various aspects:
•
lighting with energy savings of up to 15%, additional at night;
•
replacement of air conditioning systems using environmentally-friendly refrigerant gases, improving
efficiency by up to 15%;
•
installation of LED monitors with up to 20% reduction in power consumption;
•
furniture designed with FSC- and EPD-certified materials;
•
digital product labels through E-ink screens updated in real time to reduce paper use.
In 2024, the action was carried out on 8 stores. The goal is to reach 200 stores by 2026.
The financial resources used in 2024 for the new layout of TIM Stores (Blue Vision) amounted to: CapEx
€3,827k (for the construction and opening of 8 stores in 2024 and for the design of 35 stores scheduled for
2025); OpEx €9k (a fee that TIM pays to business owners for the lease of the premises. The Partner will finance
the expenses for the new layout).
TIM S.A.
TIM S.A. reinforces its commitment to contain energy consumption thanks to the use of technologies that
allow better performance with the same energy resources, with the aim of improving eco-efficiency in data
traffic, or the relationship between the data service offered to the customer (bit) and energy consumption
(Joules of energy consumed).
In 2024, eco-efficiency was 24,325 bits/joules (-5% from the 2023 figure of 32,883 bits/joules), notwithstanding
the result already achieved compared to the 2019 baseline (+148%).
The following are the main efficiency measures:
Network infrastructures
■
Optimization of operational processes (RAN Sharing Project): The project involves a partnership between
TIM and Vivo for the sharing of infrastructures, allowing the closure of redundant sites, with a significant
reduction in operating costs and emission impact.
Data Centers
■
The buildings in which the data centers are located are equipped with an Atmospheric Discharge
Protection System (SPDA). The rooms are equipped with fire and alarm systems (SDAEI) and certified
according to ABNT NBR 15247, which ensures the highest level of physical security for the rooms,
considering fire resistance, protection from heat, humidity, water, improper access and break-ins, and also
redundant electrical and air conditioning facilities.
■
The energy efficiency expressed by the average PUE (Power Usage Effectiveness) in 2024 is 1.64, below the
set target value of 1.66. In 2023, the PUE was 1.46 (the increase from the previous year is mainly due to
ongoing migration projects and the need to adjust room air conditioning)
3.
Low-emission transport
The following interventions are aimed at reducing operating costs, optimizing fuel consumption, and
introducing environmentally friendly ways of commuting.
Domestic BU
The company fleet in Italy has a total of 2,357 vehicles, including 224 operational cars, 2,039 mixed-use cars
and 94 car-sharing cars, while there are 12 electric columns located in 4 company sites.
Within TIM S.p.A. in 2024, the following actions were carried out:
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■
electrification of the car sharing fleet: out of a total of 94 vehicles, 17% are hybrid and full electric models.
The financial resources used in 2024 for electric cars amounted to: OpEx €56.849k;
■
electrification of the mixed-use car fleet: out of a total of 1791 vehicles, 44% are hybrid and full electric
models. The financial resources used in 2024 amounted to: OpEx €4,789.96k;
■
carpooling service via dedicated app (JO-JOB). In 2024, the service was used by 5% of the employees of
the 6 sites involved, populated by a total of 5,900 people. The financial resources used in 2024 amounted
to: OpEx €20.5k;
■
shuttle service. In 2024, the service was used by 25% of the employees of the 12 sites involved, populated
by a total of 7,600 people. The financial resources used in 2024 amounted to: OpEx €1,465.29k.
4.
Decarbonization of the supply chain
Supply chain management is essential to reduce greenhouse gas emissions associated with the purchase of
goods and services. With this in mind, TIM in Domestic, has identified a number of activities on an ongoing
basis.
■
ESG assessment during enrolment in the Register for suppliers at risk in terms of geographical origin
(Asia, Central and South America, North Africa, Eastern Europe) and potential violations on the
environment, human rights and labor. The assessment is carried out based on the drafting of an ESG
questionnaire that requires the achievement of a minimum compliance threshold of 40% for access to the
register. All qualified suppliers are also required to sign TIM’s Code of Ethics and Conduct. In 2024, 217
suppliers were qualified, of which 18% were subject to ESG assessment.
■
Sustainable procurement: The sustainability envelope with up to 10% weight is used in tenders, which
involves applying a check list of 30 parameters (eco standard guideline) to the purchase of products and
services. In 2024, more than 12,200 purchases were made for a value exceeding €4 billion. The
sustainability envelopes applied came to about 80;
■
Checks on execution of ESG contracts: checks are made on the compliance of the specifications included
in the contracts with effects on the Vendor Rating index. If negative, orders are rescheduled, or suppliers
cannot take part in tender processes.
■
ESG performance assessment of suppliers on Open-es platform. TIM accompanies suppliers toward
continuous improvement on ESG issues through screening and assessment activities. Since 2022, TIM has
been a value-chain partner of the Open-ES alliance, which provides ESG performance analysis tools based
on international standards. At the end of 2024, there were 1,282 TIM suppliers profiled on the platform,
with support through workshops, seminars and a community for sharing best practices. The financial
resources used in 2024 amounted to: OpEx €147k.
■
ESG auditing through the JAC alliance: TIM verifies, evaluates and promotes Corporate Social
Responsibility (CSR) principles and best practices through membership in the JAC, a joint initiative among
telecom operators for a sustainable supply chain, which includes audits to shared suppliers, among other
initiatives. Through such audits, certifying bodies ensure the application of CSR principles in the supply
chain, including principles aimed at climate change protection. In 2024, TIM conducted 11 onsite audits,
with an investment of €52k. Future OpEx are estimated at €60k for 5 audits in 2025 and 3 remaining audits
in 2024.
5. Additional climate change mitigation initiatives
Domestic BU
■
Nature-based solutions
•
Tree planting:in 2024, an urban greening project was carried out at the Stura Sud Park in Turin where
400 new trees and shrubs were planted with the innovative Tiny Forest or Miyawaki Forest technique11.
This approach involves planting native trees and shrubs, arranged with high density to promote rapid
growth and contribute to the regeneration of the local ecosystem. The new plants planted will be able
to absorb, over their entire life cycle (30 years), about 160 tCO₂, or the equivalent of the emissions of
about 1,780,000 PET plastic bottles12;
•
Offsetting the emissions of websites: in order to offset the emissions generated by consulting its
websites, TIM has decided to support an environmental project geared toward carbon reduction for the
third consecutive year. In 2024, visits to the Group's 21 main commercial and institutional websites in
Domestic generated more than 551,700 kg of CO2eq. To offset these emissions, TIM purchased 552
carbon credits through The Envira Amazonia Project, a forest conservation initiative in Brazil, certified
by the Verra Standard (VCS), among the leading international quality standards for carbon credits. The
project aims to preserve existing forests by preventing deforestation and thereby preventing the
release of greenhouse gases (GHGs), particularly carbon dioxide (CO2), resulting from logging actions.
The Envira Amazonia Project is considered a “Nature-based Solution” project, as it is aimed at
conserving natural ecosystems to mitigate climate change while generating environmental, social and
economic benefits for local communities.
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11 The planting initiative is part of Rete Clima's “Foresta Italia” national afforestation campaign, an organization that accompanies companies on
sustainability and decarbonization paths, as part of the Foresta Italia® National Campaign, in partnership with Coldiretti and PEFC Italia.
12 The calculation was carried out thanks to the CO2Web® methodology developed by Rete Clima, a non-profit organization specialized in
promoting sustainability in organizations, and verified by the ICMQ Certification Body
[MDR-A, 69 a]: To field the plan of actions related to the mitigation of impacts and risks in environmental
issues, the enterprise appropriately plans the necessary financial resources.
In addition, the Group has developed a sustainable financing plan, including through the issuance of
Sustainability Bonds, which enables it to raise resources for ESG (environmental, social, and governance)
initiatives, and ensures access to the capital market with favorable terms, particularly for research-intensive
projects and technological innovation.
In Italy, the Group issued a Sustainability Bond in 2021 with a term of 8 years, which to date has a remaining
notional amount of €499 million. The net proceeds of this bond were fully allocated after the first year, as
reported in the Sustainability Bond Report 2021, to eligible categories as provided in the Sustainability
Financing Framework 2020.
In Brazil, TIM S.A. made a similar commitment, issuing R$1.6 billion in Sustainability-Linked Bonds (SLBs) in
2021, bonds linked to social and sustainability goals.
In addition, TIM continues to collaborate with investors and partners to promote long-term sustainability,
ensuring that ecological and digital transition objectives are supported by adequate capital flows. The Group's
financial strategy also integrates the management of risks related to fluctuations in capital costs, with the aim
of optimizing resources and maximizing the social and environmental impact of its actions.
[29 b]: Mitigation actions implemented by the Group contribute to the reduction of Scope 1 and Scope 2
emissions as defined in the Business Plan targets.
TIM’s ability to implement strategic actions depends significantly on the availability and allocation of resources,
including financial resources. Continuous access to affordable finance is crucial to support initiatives to adapt
to market developments, such as managing changes in demand and supply, and to support strategic
investments, such as acquisitions and research and development (R&D) activities.
To this end, TIM has a strong financial structure that enables it to access diversified sources of capital on
competitive terms and using ESG criteria, facilitating the implementation of long-term projects.
Indeed, in the Company’s current €4 billion revolving syndicated credit facility (RCF), there is a margin
adjustment mechanism based on TIM’s achievement of certain previously identified ESG KPIs.
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Metrics and targets
Disclosure Requirement E1-4 – Targets related to climate change mitigation and
adaptation
[32], [MDR-T, 80 a, b, c, d, e]: The TIM Group, in its new 2025-27 Plan, has identified the following targets
aligned with the content and principles expressed within its policies:
1.
100% Renewable Energy by 2025;
2.
Carbon Neutrality (Scopes 1+2) by 2030;
3.
New Transition Plan (Scope 3) by 2030;
4.
Net Zero (Scopes 1+2+3) by 2040.
Through these long-term targets, the progress of which is monitored periodically, the Group aims to
significantly reduce the environmental impact of its own operations and those of the value chain.
Targets 1), 2), and 4) are expressed as absolute reduction targets, as the goal is to achieve zero emissions,
regardless of initial levels, although forms of offsets are included to achieve neutrality. Target 3), on the other
hand, is expressed in relative values, as the transition plan will be defined from 2024, the base year following
the new organizational structure. In all cases, progress in emission performance against targets will be
represented in relative terms as YoY progress relative to the base year. The introduction of intermediate
targets appropriate to the new arrangement will be evaluated after the new transition plan is redefined.
The targets cover the entire TIM Group (see disclosure requirement BP-1 “General Criteria for Drafting
Sustainability Statements” for details on the reporting perimeter) and include its own and value chain
activities, upstream and downstream.
[32], [MDR-T, 80 f]: The objectives set by the TIM Group are aligned with national, EU and international political
scenarios, and generally take into account the impacts and analyses carried out on the company's
environmental data. In addition, the targets set are aligned with the following Sustainable Development Goals
(SDGs):
■
SDG 7: ensure access to clean, cheap, and sustainable energy for all;
■
SDG 9: promote sustainable investments in the infrastructures necessary for the dissemination of
communication technologies;
■
SDG 11: disseminate the smart city model to make cities inclusive, safe, resilient, and sustainable;
■
SDG 12: promote efficiency in the use of resources and energy;
■
SDG 13: act quickly to combat climate change and its impacts.
[32], [MDR-T, 80 g]: The Group attaches considerable importance to the validation of its emission reduction
commitments by the Science Based Targets initiative (SBTi). Therefore, starting in 2022, the climate strategy
was validated by the Science Based Targets initiative (SBTi), which confirmed its consistency with the objective
of keeping global warming under 1.5°C, as established by the Paris Agreement on climate change.
However, as a result of the major change in the scope of the company occurred from July 1, 2024 as provided
by SBTi itself, it will be necessary to resubmit these objectives.
[32], [MDR-T, 80 h]: Stakeholder engagement is crucial in defining sustainability goals, as demonstrated by the
double materiality analysis, which, starting with the identification of impacts, risks and opportunities for the
Company, contributes to the definition of the Group’s priorities (for more details, see Disclosure Requirement
SBM-2 “Stakeholder Interests and Views”).
[32], [MDR-T, 80 i], [MDR-T, 80 j]: To monitor the effectiveness of the Group’s actions put in place and to track
progress against CO₂ emission reduction targets, TIM has activated monitoring processes and KPIs and since
2023 and has implemented an ESG platform that enables monitoring of performance against target goals. The
redefinition of the organizational perimeter and a new base year to evaluate business performance following
the spin-off operation does not make it possible to compare the data set out in the sustainability statements
prior to 2024. As a result, progress on targets will be displayed from the next reporting year.
[33]: All environmental targets defined in the Plan cover the relevant climate-related impacts, risks, and
opportunities revealed in the dual significance analysis (see ESRS 2 SBM-2 disclosure requirement "Stakeholder
Interests and Views").
[34 a, b]: The significant change in the company's structure and activities requires a redefinition of the base
year against which the TIM Group will measure its improved emissions performance. Reduction targets are
expressed either in a combined way, such as in the case of Carbon Neutrality, or separately in the case of 100%
renewable energy, which focuses on Scope 2 (for details see the data point [49 a, b]).
For Scope 2, the TIM Group uses the Market Based method. The scope of the GHG emission reduction target
does not differ from the scope of GHG emissions reported under the E1-6 reporting requirement "Gross scope
1, 2, 3 GHG emissions and total GHG emissions." For Scope 3, the total GHG emissions covered by the target
are related to categories 3.1 (purchased good and services), 3.2 (capital goods) and 3.11 (use of sold products),
as defined within the GHG Protocol.
[34 e], [16 a]: The primary environmental targets for the TIM Group, i.e., Carbon Neutrality by 2030 and Net
zero by 2040, follow a sectoral decarbonization approach and refer to climate scenarios provided by
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institutions such as the IPCC (Intergovernmental Panel on Climate Change) of the IEA (International Energy
Agency).
The climate strategy was validated by the Science Based Targets initiative (SBTi) in 2022 consistent with the
goal of keeping global warming within 1.5°C, but the significant change in the Group’s organizational scope will
require a new submission of targets. In defining the objectives, future developments were also considered,
including the evolution of European climate regulations, the growth in demand for low-emission digital
solutions and the adoption of emerging technologies for energy efficiency, but following the spin-off of the
fixed network, the TIM Group will have to adjust the intermediate objectives and set a new base year.
[34 f], [16 b]: To identify developments or make assessments of environmental strategy and its own
decarbonization levers, TIM adopts, qualitative and quantitative scenario analyses with Group-wide coverage.
In particular, the analyses considered two scenarios aligned with maintaining the global temperature below
1.5° C, among those proposed by NGFS (Network for Greening the Financial System):
■
NGFS Transition Scenario - 1.5°C: quantitative analysis with respect to the Net Zero target by 2040 focused
on:
•
potential regulatory obligations aimed at offsetting non-reducible CO2 emissions, such as, for example,
the introduction of the carbon tax;
•
increased costs associated with the introduction of the carbon tax. In a time frame up to 2040, a linear
estimate of the gradual reduction ofCO2 emissions was made with time intervals of ten years. The
possible failure to meet the target with hypothetical deviations of 10%, 20%, 30% and the related
potential economic impact was also estimated.
■
Physical climate scenario based on the RCP 1.9 (1.5°C) and RCP 4.5 (2.1°C – 3°C) scenarios,
the Group has chosen a scenario analysis that can be effectively applied to the company’s climate strategy
in the coming years. Analysis of climate change risks is included in the Group's Risk Management (ERM)
framework. In particular, climate-related risks that may affect the Company's assets (such as river flooding
and flooding) and, more generally, the Group's business continuity were assessed. The analysis focused on
hydrogeological risk and risk on work performance. With respect to the hydrogeological risk (Net Zero
scenario by 2050), with the help of the TIMgis system, the hydrogeological risk maps created by ISPRA (the
public body subject to the supervision of the Ministry of Ecological Transition) have been linked to the TIM
georeferenced databases of buildings and the network valued at the cost of reconstruction/replacement.
For more details with respect to climate change mitigation actions and decarbonization levers adopted by the
Group in this area, please refer to disclosure requirement E1-3 “Actions and resources related to climate
change policies”. It is also specified that the emission quantifications of the levers will be outlined when the
Group transition plan is formalized.
Disclosure requirement E1-5 - Energy consumption and energy mix
[MDR-M, 77 a], [37 a, b]: All metrics related to the Group's energy consumption refer to the companies in the
environmental perimeter (for details see Disclosure Requirement BP-1 "General Criteria for Preparing the
Sustainability Statement"). Due to the organizational discontinuity that occurred on July 1, 2024, no
comparative information from previous years is reported.
TIM subjects its energy management processes to internationally recognized certifications, such as ISO 50001,
which specifies requirements for an effective energy management system.
TIM uses standard methodologies to measure energy consumption and its mix. The total consumption,
expressed in megawatt hours (MWh), is divided into energy from fossil, renewable and nuclear sources.
Energy from fossil sources includes fuels such as coal, oil and natural gas, as well as purchased energy from
fossil sources.
Renewable energy includes renewable fuels (biomass, biogas, renewable hydrogen), purchased renewable
energy (electricity, heat, steam) and self-generated renewable energy.
Nuclear power, i.e., the share of electricity generated by nuclear power plants, was calculated based on the
Residual Mix, using the figure published by AIB 2023 (Association of Issuing Bodies) to ensure consistency with
the emission factors adopted in the emission calculations. For the reporting year, the share of nuclear power in
the Italian Residual Mix of 4.40% was applied to total electricity consumption from mixed sources.
Self-produced and internally consumed energy is counted only once in the relevant category.
As a Telecommunications company, TIM is not among the companies subject to the disclosure requirements
for high climate impact industries. However, considering the Group companies individually, TIM Retail S.r.l. and
Olivetti S.p.A. fall within sectors considered to have a high climate impact. For these companies, energy
consumption is disaggregated by fossil source categories. In addition, energy intensity is calculated for these
companies as the ratio of total energy consumption to net revenues to assess energy efficiency in relation to
financial performance, excluding materials and fuels used as raw materials not intended for energy purposes.
TIM's consumption refers to the entire Fiscal Year 2024. Consumption data for the second half of the year for
the assets in use by TIM (colocation and offices) and transferred to NetCo, were estimated linearly from the
first half of the year, due to unavailability of primary data.
For consumption reported for NetCo alone in the first half of the year, see the section "Information on NetCo's
Performance," Disclosure Requirement E1-5 "Energy Consumption and Energy Mix."
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The consumption and energy mix at the Group level are shown below.
[37]: Energy consumption and mix - TIM Group
UOM
2024
Total energy consumption from fossil sources
MWh
349,240.98
Percentage of fossil sources in total energy consumption
%
15.77
Total energy consumption from nuclear sources
MWh
8,626.89
Percentage of energy consumption from nuclear sources in total
energy consumption
%
0.39
Fuel consumption from renewable sources
MWh
134,243.97
Consumption of purchased or acquired electricity, heat, steam, and
cooling from renewable sources
MWh
1,351,332.71
Consumption of self-generated renewable energy without relying on
fuels
MWh
370,561.87
Total energy consumption from renewable sources
MWh
1,856,138.55
Percentage of renewable sources of total energy consumption
%
83.84
Total energy consumption related to own operations
MWh
2,214,006.42
[38], [42]: For the companies TIM Retail S.r.l., Olivetti S.p.A. that are part of the high climate impact sectors, the
representation of energy consumption and mix is provided below with details of the breakdown of energy
consumption from fossil sources.
[38]: Energy consumption and mix of High Climate Impact Companies (TIM Retail S.r.l. and Olivetti S.p.A.)
UOM
2024
Fuel consumption from coal and coal products
MWh
0.00
Fuel consumption from crude oil and petroleum products
MWh
591.63
Fuel consumption from natural gas
MWh
160.61
Fuel consumption from other fossil sources
MWh
0.00
Consumption of purchased or acquired electricity, heat, steam, or
cooling from fossil sources
MWh
0.00
Total energy consumption from fossil sources
MWh
752.24
Percentage of fossil sources in total energy consumption
%
17.58
Total energy consumption from nuclear sources
MWh
0.00
Percentage of energy consumption from nuclear sources in total energy
consumption
%
0.00
Fuel consumption from renewable sources
MWh
0.00
Consumption of purchased or acquired electricity, heat, steam, and
cooling from renewable sources
MWh
3,525.69
Consumption of self-generated renewable energy without relying on
fuels
MWh
0.00
Total energy consumption from renewable sources
MWh
3,525.69
Percentage of renewable sources of total energy consumption
%
82.42
Total energy consumption related to own operations
MWh
4,277.93
[39]: The following are Group data on energy production from nonrenewable sources and energy production
from renewable sources.
[39]: Non-renewable and renewable energy production - TIM Group
UOM
2024
Non-renewable energy production
MWh
100,081.42
Renewable energy production
MWh
370,561.88
[40], [41]: Below are energy intensity figures for TIM Retail S.r.l. and Olivetti S.p.A. operating in high climate-
impact sectors, calculated on revenues before elisions.
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[40], [41]: Energy intensity of activities in high-impact climate sectors (TIM Retail, Olivetti)
UOM
2024
Total energy consumption from activities in sectors with a high
climate impact
MWh
4,277.93
Net revenues from activities in high climate impact sectors used to
calculate energy intensity
€ million
229.27
Energy intensity associated with activities in sectors with high
climate impact
MWh/€ million
18.66
Below is a quantitative reconciliation of net revenues from activities in high climate impact sectors.
[43]: Net revenues from activities in high climate impact sectors used to calculate energy intensity
€ million
Net Revenues from Activities in Sectors with High Climate Impact Used to Calculate
Energy Intensity
229
Net Revenues (Other, Activities in Sectors Not with High Climate Impact)
14,213
Total Net Revenues as per Consolidated Balance
14,442
Disclosure requirement E1-6 - Gross Scope 1, 2, and 3 GHG emissions, as well as total
GHG emissions
[MDR-M, 77 a], [44], [47]]: Gross GHG emissions refer to the Group's environmental perimeter (see Disclosure
Requirement BP-1 "General Criteria for Preparing the Sustainability Statement") and are expressed in metric
tons of CO2eq.
In line with current regulations, the methodology adopted for carbon inventory calculation refers to the
Greenhouse Gas Protocol. Specifically, the guidance contained in the "Corporate Accounting and Reporting
Standard" for general reporting and the "Corporate Value Chain Accounting and Reporting Standard" for
Scope 3 emissions are followed.
Due to the organizational discontinuity that occurred on July 1, 2024 which resulted in significant changes in
the circumstances affecting GHG emissions, it is not possible to provide comparative information with respect
to previous years
TIM's emissions refers to the entire Fiscal Year 2024. The emissions reported to NetCo alone in the first half of
the year are in the section "Information on NetCo's Performance," disclosure requirement E1-6 "Gross Scope 1,
2, 3 GHG Emissions and Total GHG Emissions."
[44], [52 a, b]: Gross Scope 1, 2, 3 GHG Emissions - TIM Group
UOM
2024
Gross Scope 1 GHG emissions
tCO2eq
52,402.12
Gross Scope 2 Location-Based GHG emissions
tCO2eq
350,081.45
Gross Scope 2 Market-Based GHG emissions
tCO2eq
103,374.75
Gross Scope 3 GHG emissions
tCO2eq
2,025,399.85
Total Location Based GHG emissions
tCO2eq
2,427,883.42
Total Market Based GHG emissions
tCO2eq
2,181,176.72
[MDR-M, 77 a], [44], [50 a, b]: The following are the Scope 1 and Scope 2 emissions of the TIM Group with
reference to the environmental scope for activities where the Company has financial and operational control.
TIM exercises financial control over owned buildings and infrastructure. Instead, it exercises operational control
over the real estate and infrastructure it uses, which it does not own, over which it has energy utilities in its
name, where it has the ability to purchase energy (including renewable energy) directly or indirectly, and
where it has the ability to influence investments related to the property or the definition of the activities carried
out therein.
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[44], [50 a, b]: Gross GHG emissions disaggregated by control type - Scope 1 and 2 - TIM Group
UOM
2024
Gross Scope 1 GHG emissions
tCO2eq
52,402.12
From activities with financial control
tCO2eq
45,121.91
From activities with operational control
tCO2eq
7,280.21
Gross Scope 2 Location-Based GHG emissions
tCO2eq
350,081.45
From activities with financial control
tCO2eq
112,462.22
From activities with operational control
tCO2eq
237,619.23
Gross Scope 2 Market-Based GHG emissions
tCO2eq
103,374.75
From activities with financial control
tCO2eq
5,230.99
From activities with operational control
tCO2eq
98,143.76
Total GHG Scope 1 and 2 emissions based on Location-Based financial control
tCO2eq
157,584.13
Total GHG Scope 1 and 2 emissions based on Market-Based financial control
tCO2eq
50,352.90
Total Scope 1 and 2 GHG emissions based on Location-Based operational control
tCO2eq
244,899.44
Total GHG Scope 1 and 2 emissions based on Market-Based operational control
tCO2eq
105,423.97
Below are the TIM Group's gross GHG emissions disaggregated by Scope 1, 2 and 3 with reference to the
Domestic BU and Brazil BU (TIM S.A.).
[RA 41] Gross Scope 1, 2 and 3 GHG emissions by Business Unit
UOM
Gross Scope
1 GHG
emissions
Gross Scope
2 Location-
Based GHG
emissions
Gross Scope
2 Market-
Based GHG
emissions
Gross Scope
3 GHG
emissions
Total Location
Based GHG
emissions
Total Market
Based GHG
emissions
Domestic BU
tCO2eq
33,750.35
333,801.94
103,374.75
1,439,960.93
1,807,513.22
1,577,086.03
Brazil BU
tCO2eq
18,651.77
16,279.51
—
585,438.92
620,370.20
604,090.69
Group Total
tCO2eq
52,402.12
350,081.45
103,374.75
2,025,399.85
2,427,883.42
2,181,176.72
[MDR-M, 77 a], [48a]: The Group's gross Scope 1 GHG emissions are reported in metric tons of CO2eq and are
generated almost exclusively from fossil fuels for heating, automotive, and power generation.
Also included in the calculation and converted to CO2 are leaks of hydrochlorofluorocarbon (HCFC) gases,
hydrofluorocarbon (HFC) gases, and other gases when present in air-conditioning and fire-fighting systems.
Valuation of CO2 equivalent emissions of HCFC, HFC and other refrigerant gases is done by considering global
warming potentials (GWP): the index is based on a relative scale that compares the gas considered with an
equal mass of carbon dioxide whose GWP is 1 and the calculation used the IPCC’s Sixth Assessment Report (VI
Report).
The emission factors used, expressed in CO2eq are published by DEFRA 2024 (Department For Environment,
Food and Rural Affairs).
For TIM S.A., emissions from effluents, from the consumption of fuels used for the maintenance of electricity
generation plants and from fugitive CO2 emissions deriving from the recharging of fire extinguishers, have been
reported in detail. In addition, biogenic emissions are reported separately.
The calculation of the Scope 1 GHG emissions excludes absorptions, and any shares of GHG or carbon credits
purchased, sold or transferred. Furthermore, the TIM Group is not included in the scope of activities for the EU
Emissions Trading System (EU ETS).
Scope 1 GHG emissions are calculated by distinguishing the origin from stationary combustion, mobile
combustion, process emissions and fugitive emissions using suitable data on activities that include
consumption of nonrenewable fuels.
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[48a] Type of GHG emissions included in Scope 1 - TIM Group
UOM
2024
Emissions by stationary combustion:
tCO2eq
22,691.04
emissions from trigeneration
tCO2eq
16,821.22
heating emissions
tCO2eq
3,734.21
emissions from the self-generation of electricity from mixed sources*13
tCO2eq
2,135.61
biogas emissions
tCO2eq
0.00
Mobile combustion emissions:
tCO2eq
9,827.48
emissions from haulage
tCO2eq
7,911.47
emissions from machinery used for the maintenance and cleaning of plants
tCO2eq
1,916.01
Process emissions:
tCO2eq
0.00
Emissions from tributaries
tCO2eq
0.00
fugitive emissions:
tCO2eq
19,883.61
emissions from the dispersion of ozone-depleting gases
tCO2eq
19,883.61
Total Scope 1 emissions
tCO2eq
52,402.12
[RA 43c] Biogenic emissions not included in Scope 1 - TIM Group
UOM
2024
Biogenic emissions of CO2 from the combustion or bio-degradation of biomass
separately from the Scope 1 GHG emissions
tCO2eq
166.02
[48 b]: In the calculation of Scope 1 GHG emissions, the TIM Group does not use and therefore does not
consider emissions covered by regulated quota trading systems.
[MDR-M, 77 a], [49 a, b], [52 a, b], [RA 45 d]: : TIM Group’s gross Scope 2 GHG emissions, expressed in metric
tonnes of CO2eq, are reported in a disaggregated manner, distinguishing between emissions measured by the
Location Based method and those measured by the Market Based method.
For the Location-Based methodology, the Domestic BU uses the average emissions associated with the power
grid of the country where the energy is consumed, applying national emission factors. The databases that
have been used include ISPRA 2023 (published on 22/05/24) for Italy, Terna 2019 for Turkey and Panama. This
approach reflects the indirect emissions deriving from purchased energy based on the composition of the local
power grid. For TIM S.A., quantification of emissions is based on the average emission factor for electricity
generation in a given power system, using the National Interconnected System (NIS), under the responsibility
of Ministries of Science and Technology (MCTi). This mandatory approach is traditionally adopted by the
PBGHGP (Brazilian Greenhouse Gas Emissions Management Program).
For the Market-Based methodology, specific energy supply contracts were considered, such as green energy
purchase contracts or renewable energy certificates. The Domestic BU uses AIB 2023 (published 4/06/24)
emission factors for residual mix and location-based methodology for countries outside the European Union
where residual mix could not be obtained. There are no biogenic CO2 emissions from combustion or
biodegradation of biomass for Scope 2 GHG emissions. For TIM S.A., the emission factor specific to the
electricity generation sources chosen by the Company for purchase is considered.
For the Domestic BU, "Market Based" emissions are covered by Guarantees of Origin for about 75% and Power
Purchase Agreements, with ERG for the supply of energy from wind farms, for 9%, covering in total 84% of the
total energy purchased. Instead, TIM S.A. uses Renewable Energy Certificates (I-RECs) covering 100% of the
energy purchased.
[49a, b]: Gross Scope 2 GHG Emissions - TIM Group
UOM
2024
Gross Scope 2 Location-Based GHG emissions
tCO2eq
350,081.45
Gross Scope 2 Market-Based GHG emissions
tCO2eq
103,374.75
[MDR-M, 77 a], [51]: The TIM Group's gross Scope 3 GHG emissions are in line with the principles of the
Corporate Value Chain (Scope 3) Accounting and Reporting Standard of the Greenhouse Gas Protocol (2011
version, pp. 61 and 65-68) and include reporting on the following emission-relevant categories: 1. “Purchased
goods and services”; 2. “Capital goods; 11. “Use of products sold.
An effort was also made to expand the disclosure of its emissions to include the following additional
categories: 3. “Fuel and energy-related activities”, 12. “End of life treatment of sold products”.
Report on Operations of the
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Climate Change
195
13 Emissions from self-generated electricity from mixed sources in the table include both emissions from diesel for generator sets and emissions
from natural gas for the self-generation of energy
The reporting boundary includes companies in the environmental perimeter. Offsets and any GHG allowances
or carbon credits purchased, sold or transferred are excluded from the calculation of Scope 3 emissions.The
Scope 3 categories were measured using inputs from specific activities along the upstream and downstream
value chain, but were not calculated based on raw data obtained from suppliers or other partners along the
value chain.
Below are the calculation methodologies for the different Scope 3 categories:
■
Category 1 - Purchase of products and services
•
BU Domestic: an expenditure-based methodology was adopted that uses the purchase items by
commodity group (confirmed expenditure net of intercompany), of the companies included in the
environmental perimeter surveyed by SAP14. Operating expenses for telecommunication services,
including rental and management of space and infrastructure provided by third parties and colocation
expenses, were also considered. For the conversion of the monetary value into emissions, the NACE-
Eurostat emission factors were used. For the other companies in the environmental perimeter15,
subject to reporting, the items in the Consolidated Financial Statements related to expenditures for
"Purchase of goods and services" were used to which average emission factors taken from the sample
of available data were applied.
•
TIM S.A.: an expenditure-based methodology was adopted using commodity group purchase items
(net of intercompany expenditure) and audited accounting items. For the conversion of the monetary
value into emissions, the NACE-Eurostat emission factors were used.
■
Category 2 - Purchase of capital goods:
•
Domestic BU: an expenditure-based methodology was adopted using the investment items by
commodity group (well-extended amounts net intercompany) of companies in the environmental
perimeter surveyed by SAP (see Note 14). This includes investment in the operation of its own
telecommunications services provided by third parties. For conversion of monetary value to emissions,
emission factors published by Eurostat were used. For the other companies in the perimeter (see Note
15) being reported, investment data were taken from the items in the Consolidated Financial
Statements in relation to Investments (CapEx) to which average emission factors taken from the
sample of available data were applied.
•
TIM S.A.: an expenditure-based methodology was adopted, which took audited investment items (net
of intercompany investment) as a reference. Emission factors related to the type of purchase
published by Eurostat were used to convert the monetary value to emissions.
■
Category 3 - Fuels and energy-related activities (not included in Scope 1 or 2: the calculation was made
by multiplying the fuel consumption and electricity purchase data of Scope 1 and Scope 2 by their
respective emission factors. These factors include the impact generated by the production of the energy
carrier and the losses associated with transportation and distribution. For fuels, the DEFRA 2024 database
was used; For non renewable electricity, however, DEFRA 2021 emission factors were used, as those for
the 2024 database were no longer available.
■
Category 11 - Use of goods and services: the calculation methodology considers the use phase of
products sold by the Group. Given the wide variety of products marketed, the average weighted emission
impact for the different product categories was initially assessed, then focusing on those with the greatest
impact in terms of sales volume. The calculation has considered the average energy consumption during
the average useful life of the product. The consumption is then multiplied by the corresponding location-
based emission factor of electricity. For the Domestic BU, the ISPRA 2023 emission factor (published on
May 22, 2024) was applied, while for TIM S.A., the average emission factor for electricity generation in the
National Interconnected System (SIN) under the responsibility of the Ministries of Science and Technology
(MCTi) was used.
■
Category 12 - End-of-life treatment of products sold: the methodology considers the disposal stage of
products sold by the Group and adopts the average data method. Given the large quantity of products
marketed, average weights were calculated for each product category, considering sector estimates based
on the type of disposal expected for each good. For both the Domestic BU and TIM S.A., emission factors
based on the DEFRA 2024 database were used.
No biogenic emissions of CO2 from the combustion or biodegradation of biomass that occur in its upstream
and downstream value chain were registered.
The calculation of the Scope 3 GHG emissions excludes absorptions, and any shares of GHG or carbon credits
purchased, sold or transferred.
[51]: Gross Scope 3 GHG Emissions - TIM Group
UOM
2024
Category 1 Purchased goods and services
tCO2eq
1,507,169.99
Category 2 Capital goods
tCO2eq
303,900.22
Category 3 Fuel and energy-related activities (not included in Scope
1 or Scope 2)
tCO2eq
28,255.83
Category 11 Use of sold products
tCO2eq
186,054.21
Category 12 End of life treatment of sold products
tCO2eq
19.60
Total Gross Scope 3 GHG emissions
tCO2eq
2,025,399.85
Report on Operations of the
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196
14 TIM S.p.A, Telecontact Center S.p.A., Telecom Italia Sparkle S.p.A., TI Sparkle Turkey, Olivetti S.p.A and Noovle S.p.A..
15 TI Sparkle Greece S.A., Telsy S.p.A., Panama Digital Gateway S.A. and TIM Retail S.r.l..
[MDR-M, 77 a], [53]: Below is the value of the TIM Group's GHG intensity (environmental perimeter) in metric
tons of CO2eq determined by relating total GHG emissions by both Location Based and Market Based methods
to net revenues.
[53] GHG Intensity - TIM Group
UOM
2024
Total Location Based GHG emissions
tCO2eq
2,427,883.42
Total Market Based GHG emissions
tCO2eq
2,181,176.72
Net revenues used to calculate GHG intensity
€ million
14,207
Intensity of Location Based GHG emissions
tCO2eq/million €
170.89
Intensity of Market Based GHG Emissions
tCO2eq/million €
153.52
[55] Reconciliation with financial statements - TIM Group
UOM
2024
Net revenues used to calculate GHG intensity
€ million
14,207
Net Revenues (other, not related to environmental perimeter)
€ million
235
Total Net Revenues as per Consolidated Balance
€ million
14,442
For key information related to NetCo, please refer to the section “NetCo Performance Information”, Disclosure
Requirement E1-6 “Gross Scope 1, 2, 3 GHG Emissions and Total GHG Emissions”.
Disclosure Requirement E1-7 - GHG removals and GHG mitigation projects financed
through carbon credits
[MDR-M 77 a], [56 a, b], [58 a, b]: TIM provides transparency on GHG offsetting activities carried out outside its
value chain through the purchase of certified carbon credits. Specifically, in order to offset the more than 551
tCO2eq generated in 2024 from consulting the main commercial and institutional websites of the Domestic BU,
TIM purchased 552 carbon credits, through "The Envira Amazonia Project," a forest conservation initiative in
Brazil, which aims to preserve existing forests by preventing deforestation as a result of logging actions and the
consequent release of greenhouse gases (GHGs), particularly carbon dioxide (CO2). The calculation of avoided
emissions and carbon credits to be purchased follows the CO2web® calculation methodology owned by Rete
Clima, a nonprofit technical body specializing in promoting sustainability in organizations, and is verified by the
ICMQ Certification Body.
In Brazil, TIM S.A. provides transparency on GHG offsetting activities carried out outside its value chain through
the purchase of certified carbon credits. In 2024, 16,619 carbon credits were purchased for the neutralization of
direct GHG emissions. The decision to invest in a certified project was driven by the need to also ensure support
for local communities and stimulate positive social-environmental aspects.
[MDR-M, 77 a], [58 e, f], [60], [61 a, b, c]: The TIM Group has given public disclosure of its website neutralization
activity through the use of carbon credits. However, this activity falls outside the broader targets set by the
company (specifically "Carbon Neutrality" and "Net Zero") communicated in the Disclosure Requirement. "E1-4
Targets related to climate change mitigation and adaptation."
“The Envira Amazonia Project” is certified according to the following internationally recognized quality
standards:
■
Verified Carbon Standard (VCS) - Verra: the VCS standard ensures that the project generates real,
verifiable, and permanent CO2 reductions. It is one of the most internationally recognized standards for
GHG emission reduction and absorption projects;
■
CCB Standards (Climate, Community & Biodiversity Alliance): the project is also certified to the CCB
standard, which attests to the environmental, social, and biodiversity benefits generated by the initiative.
The project ensures a measurable positive environmental impact through reduced emissions from avoided
deforestation in support of sustainable economic development projects and uses a biogenic sink, as it relies on
the conservation of natural forests that store CO2 in plant biomass and soil. As the project is located in Brazil,
no purchased carbon credits were generated within the European Union.
There are no reported activities, related to the absorption and storage of GHG from its own operations and its
upstream and downstream value chain.
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Resource use and circular economy [ESRS E5]
Impact, risk, and opportunity management
Disclosure Requirement E5-1 – Policies related to resource use and circular economy
[14], [MDR-P, 65 a]: IROs that emerged as significant from the dual relevance analysis to the theme "Resource
Use and Circular Economy " are addressed in the Policy "Commitment to Environmental Sustainability in the
TIM Group" and the "Waste Management Procedure." All policies link to the following significant negative
impact revealed by the double materiality analysis:
■
“the incorrect management of waste by TIM (e.g. electronic waste) and its supply chain (e.g. network
components) can contribute to environmental pollution and affect the transition to the circular economy”.
With respect to the considered IRO, the Policy "Commitment to Environmental Sustainability in the TIM
Group" emphasizes TIM's commitment to:
■
manage the waste generated through its business in order to favor the reuse and recycling of materials,
reducing the use of dangerous substances to a minimum;
■
invest in the development of low-carbon solutions, products and services, contributing to the energy
transition towards a low-carbon economy;
■
choose suppliers and partners based on environmental sustainability criteria.
The “TIM Waste Management Procedure” aims to identify general rules, roles and responsibilities for the
correct management of waste produced by all business activities in line with mandatory legislative provisions,
and with the provisions set out in Legislative Decree 231, considering that the possibilities of prevention, reuse
and recycling of the waste produced have already been verified.
In addition, in order to strengthen its commitment to the circular economy, the Group has defined additional
guiding principles on the management of resources and waste, which include, among other things:
■
the implementation of action plans aimed at reducing the production of waste and increasing the useful
life of goods through, for example, the supply of regenerated products for customer service and the sale of
reconditioned products;
■
the promotion of programs for the recycling of business equipment such as PCs and mobile phones as well
as business furniture that is reused internally or donated for social purposes;
■
the selection of suppliers who maximize the recovery of the waste sent for disposal and who favor the
reuse of rare resources and precious materials;
■
the preparation of training and awareness programs for employees in order to spread responsible behavior
within the Organization.
To contextualize the Group’s policies in the Brazilian business context, TIM S.A. has also defined the
“Environmental Policy” in which the company sets out its commitment to:
■
promoting the continuous improvement of its environmental performance;
■
mitigating environmental risks associated with the company’s business;
■
compliance with the relevant regulations and the Group's guidelines.
With reference to the specific impact identified for the “circular economy” theme, the policy also aims to
manage waste with a view to adopting best practices to reduce production and promote its separate
collection, recovery and recycling and the intelligent distribution and reverse logistics of products for an
ecologically correct final destination.
[14], [MDR-P, 65 b]: The “Commitment to Environmental Sustainability” Policy is valid at the Group level. In
particular, the recipients of the document are all the Italian and foreign TIM Group companies, the TIM
Foundation, Instituto TIM, the operating structures and corporate departments whose business may also have
potentially significant impacts on the environment.
TIM’s Waste Management Procedure is intended for all TIM’s business functions and companies in Italy that,
for different reasons, participate in the management of the waste deriving from their activities within the
national territory.
[14], [MDR-P, 65 c]: The implementation of the “Commitment to Environmental Sustainability” Policy is
entrusted to the head of the Corporate Communication and Sustainability Department who reports directly to
the Chief Executive Officer.
TIM's Waste Management Procedure is approved by the Human Resources Department and by all the main
business functions involved in waste management.
[14], [MDR-P, 65 d]: The “Commitment to Environmental Sustainability” Policy is in line with the main
international reference standards such as ISO 14001, ISO 14064, ISO 50001 and the GHG Protocol.
For TIM’s Waste Management Procedure, the list of the main regulatory references is provided below:
•
Community Directive 2008/98/EC on waste and decision 2014/955/EU.
•
Legislative Decree no. 152 of April 3, 2006 (and subsequent amendments) - Environmental regulations
- Part IV.
•
Ministerial Decree of December 17, 2009 - Establishment of the waste traceability control system,
pursuant to Article 189 of Legislative Decree no. 152 of 2006 and Article 14-bis of Decree-Law no. 78 of
2009 converted, with amendments, by Law no. 102 of 2009 and subsequent amendments.
Report on Operations of the
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Resource use and circular economy
198
•
Ministerial Decree no. 145 of April 1, 1998 - Regulation defining the model and the contents of the
waste accompanying form pursuant to articles 15, 18, paragraph 2, letter e), and paragraph 4, of
Legislative Decree no. 22 of February 5, 1997.
•
Ministerial Decree no. 148 of April 1, 1998 - Regulation approving the model of the incoming and
outgoing waste records pursuant to articles 12, 18, paragraph 2, letter m), and 18, paragraph 4, of
Legislative Decree no. 22 of February 5, 1997.
•
Commission Regulation (EU) no. 1357/2014 of December 18, 2014, which replaces Annex III of Directive
2008/98/EC of the European Parliament and of the Council on waste and which repeals certain
directives, having entered into force on June 1, 2015.
•
Offences provided for by the Criminal Code pursuant to Italian Law no. 68 of May 20, 2015 (“Provisions
on crimes against the environment”): Articles 452 and subsequent amendments.
[14], [MDR-P, 65 e]: The Group Policies take into account aspects identified as fundamental and priority by
analyses conducted internally and with external stakeholders. These aspects are strongly linked to the
operations of the TIM Group Companies.
[14], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents
available to its stakeholders on its corporate intranet and on the Group's company website www.gruppotim.it,
in compliance with “least privilege” and “need to know” principles. Where appropriate, for relations with third
parties, specific contractual clauses will be added relating to the acceptance and/or compliance with some,
such as the Code of Ethics.
Information on TIM S.A.’s policies, on the other hand, can be found on its institutional website https://
ri.tim.com.br/ in the “Regulations and Policies” section
[15 a]: In the “Commitment to environmental sustainability in the TIM Group” Policy, the company emphasizes
its focus on:
■
the management of waste generate din the course of its business, which is carried out focusing on the
reuse and recycling of objects, substances and materials to minimize the use of hazardous substances;
■
the management of infrastructures and company offices, paying particular attention to technological
systems, their design, operation and maintenance, to minimize the use of virgin resources such as paper,
water, gas and fuels.
[15 b]: In the Policy “Commitment to environmental sustainability in the TIM Group”, the Company recognizes
the importance of ensuring that, in its business and in those of the supply chain, renewable resources are
managed in such a way as to preserve the environment and to implement circular economy models.
Specifically, TIM:
■
when choosing suppliers, give priority to the adoption of recognized certification standards, such as the FSC
for paper or the Environmental Product Declaration (EPD) and the carbon footprint for products, to ensure
that the supply is managed in a sustainable way;
■
promotes the recovery of raw materials, the regeneration of products, for example, for service
management, as well as the sale of reconditioned devices.
Disclosure Requirement E5-2 – Actions and resources in relation to resource use and
circular economy
[19], [MDR-A 68 a, b, c, e], [MDR-A, 69 a, b, c]: In addition to circular economy policies that provide the
framework for consistent and informed management of business activities, the Group deploys actions and
resources related to:
1.
Waste Management
2.
Resource outflows related to products and services
Actions are targeted to benefit TIM's customers and employees, both in Italy and Brazil, and involve internal
operations and the value chain. In addition, these actions are continuous in order to ensure efficiency in the
use of output resources and incentive in the adoption of circular processes.
Financial resources in terms of significant operating expenditures (OpEx) and capital expenditures (CapEx) are
also reported in the description of the actions.
1. Waste Management
The following actions aim to reduce the consumption of resources such as paper, plastic and encourage the
spread of circular models.
Domestic BU
■
Installation of water dispensers: in 2024, there were 10 dispensers in TIM's wholly owned locations, which
distributed about 14,400 liters of water with an annual emission savings of about 0.65 tC02eq equal to
about 7,200 0.5l plastic bottles.
■
monitoring of paper purchases, achieved by periodic tracking of purchases. In 2024, about 1,030 t of paper
was purchased, including 1,022 t for commercial use and 8 t for office use.
■
monitoring paper consumption for bills, payment reminders and contract termination notices.
Specifically, monitoring activities included:
Report on Operations of the
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•
bills issued to customers (Consumer fixed and mobile, Enterprise and Server Message Block (fixed and
mobile). About 96.5 million bills were issued in 2024, of which about 54.3 million were digital,
accounting for 56% of the total (an improvement of 20 percentage points over 2023). OpEx related to
this activity amounted to €4,668.482k;
•
payment reminders and contract termination notices issued to customers (consumer fixed and mobile,
enterprise and smb fixed and mobile). In 2024, 4.3 million payment notices were issued of which 1.6
million were digital or 39% of the total, (an improvement of 28 percentage points over 2023). OpEx
related to this activity amounted to €5,942.844k;
•
The digitization of customer contracts at the physical sales network. In 2024, implementation of the
new mode involving digital contract signing via One Time Password (OTP) was completed, resulting in
paper savings of 10 A4 sheets per fixed line contract (NIP/LLU), and 3 A4 sheets per mobile line
contract (AL/MNP). The implementation has been enabled across the entire physical sales network,
which includes more than 4,000 Points of Sale, both single brand and multibrand. Digital contracts will
be effectively operational from 2025. OpEx related to this activity amounted to €438k and CapEx
amounted to €412k.
TIM S.A.
■
digital invoicing: in 2024, with the issuance of digital invoices and collections, TIM S.A. avoided the use of
8,142 tonnes of paper and the consequential generation of waste, saving R$ 471,298,666.13. The initiative
also avoids the emission of 10,735 tCO2e.
2. Resource outflows related to products and services
The initiatives described below are aimed at recovering materials and resources to reduce waste generation
and extend the useful life of products.
Domestic BU
■
Recovery and reuse of corporate IT equipment and smartphones (such as PCs, Videos). The collected
assets are regenerated for reuse within the company or donated. In 2024 out of nearly 12,000 pieces of IT
equipment collected, 7,500 pieces or 64% were recovered while the remainder were disposed of. Of the
7,500 pieces of reconditioned computer equipment, 42% were reused, 7% were donated, and the
remaining 51% are available for reuse. This activity resulted in emission savings of about 1,520 tCO2eq in
the year, equal to about 19,500 Milan-Rome flights. The OpEx related to these activities amounted to
€92.7k
■
Trade-in initiatives aimed at extending the useful life of products and encouraging the recovery of raw
materials. In Italy, with the “TIM Rivaluta Smartphone” service aimed at Consumer customers, customers
return their old smartphone and receive a discount on a new purchase. The old device is either
regenerated or disposed of sustainably. More than 5,500 smartphones were collected in 2024, of which
about 80% were reconditioned, with 0.9 t of e-waste diverted from landfills and 0.03 t of rare resources
recovered;16.
■
Replacement of failed products with remanufactured products. In particular, the following initiatives are
highlighted:
•
smartphone replacement service in case of failure or refund in case of theft or loss, aimed at Business
customers ("All Risk Assistance" service): in 2024, about 22,000 reconditioned smartphones were given
for replacement, accounting for 77% of the total replacements made. The OpEx related to these
activities amounted to €2,498k and CapEx €3,594k
•
replacements of failed modems with reconditioned modems for Consumer customers: in 2024, 33,000
replacements were made with reconditioned parts, accounting for 33% of total replacements;
•
modem regeneration through collaboration with inmates of Turin Prison17: in 2024, 46,000 modems
were reconditioned of which 33,000 were reused. The OpEx related to these activities amounted to
€322k
■
Reconditioned smartphones for sale. TIM offers reconditioned grade-A Apple smartphones to ensure high
quality devices at affordable and environmentally friendly prices. Smartphones are purchased from
specialized suppliers who recondition the products through a rigorous process of repairing, replacing, and
upgrading damaged or worn components. In 2024, 5 different models of Apple smartphones were listed
and more than 800 phones were sold. OpEx related to this activity amounted to €226k;
■
Production of physical SIMs with reduced environmental impact: SIM cards for TIM and KENA customers
are made from 100% recycled and recyclable plastic, use flyers made from FSC-certified paper and 100%
recyclable plastic bags;
■
Activation of e-SIMs in place of physical SIMs, to promote material savings associated with physical SIM
production and reduce e-waste: an analysis performed on the carbon footprint of e-Sim toward physical
SIM18 showed a unit emission savings of 98%. In 2024, e-SIMs were activated on 77,000 lines with an
estimated saving of 9.9 tCO2eq. The e-SIM implementation activity involved CapEx of €55k.
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16 Numbers provided by Assurant, partner of TIMFin
17 Contracted through TIM Service Trade provider
18 Life Cycle Assessment (LCA) study, performed by Rete Clima, a specialized nonprofit, aimed at assessing the reduction in greenhouse gas
emissions of an e-SIM compared to a Physical SIM over the entire product life cycle (from production to disposal)
TIM S.A.
■
Trade-in program for mobile phones and smartwatches where customers can return old devices and
obtain a discount on the purchase of new models. All devices undergo a detailed evaluation and, where
possible, a repair process in order to be reused/resold. Equipment that cannot be reused or reconditioned is
sent for recycling. In 2024, around 3,860 smartphones were collected, of which about 93% were
reconditioned.
■
Reuse of abandoned “customer equipment” (CPM - Customer Premises Equipment) such as modems and
routers: the equipment is collected, evaluated, and, depending on its condition, subjected to the
reconditioning process for new use. 163,404 modems were reconditioned in 2024.
OpEx related to these two activities amounted to €2,410.14k
[19], [MDR-A 68 d]: With respect to the theme "resource use and circular economy," the double materiality
analysis identified the following negative impact: “the incorrect management of waste by TIM (e.g. electronic
waste) and its supply chain (e.g. network components) can contribute to environmental pollution and affect the
transition to the circular economy”.
The aforementioned impact is mitigated through initiatives to optimize and reduce the consumption of
resources, such as water and plastic, and to recondition products in order to extend their useful life and limit
the waste generation, limiting the damage that the Group’s activities can cause to the environment.
Metrics and targets
Disclosure Requirement E5-3 - Targets related to resource use and circular economy
[23], [MDR-T, 80 a - j]: Without prejudice to the company’s ongoing commitment to adopting circular models
in its operations and value chain, TIM has not defined a specific target on resource use at the Group level,
defining specific targets that take into account the country context.
In Italy, the different organizational structure has resulted in a substantial change in the size of the
infrastructure and population of the Domestic BU, drastically reducing the production of industrial waste
related, for example, to network decommissioning activities and the recovery of network equipment and
materials.
In this context, the focus has been on products, introducing a specific target of an absolute nature, “100% TIM
brand products with carbon footprint”, which envisions, by 2026, having the carbon footprint of 100% of TIM
brand modems marketed.
The target covers the range of TIM-branded modems and involves suppliers being asked for internationally
recognized third-party certifications such as EPD or Carbon Footprint.
In the new 2025-2027 Plan, the goal will become an integral part of the transition plan, further strengthening
TIM’s commitment to environmental sustainability.
In Brazil, on the other hand, TIM S.A. has set a goal to reuse and recycle 95% of solid waste by 2025, given the
amount of waste generated and commitments made to Brazilian stakeholders. In 2024, the base year of the
target, total waste of 2,292.11 tons by eliminating class C and D organic and construction waste was 99.93%
reused or recycled. To ensure the scientific soundness of the objective, TIM S.A. has adopted internationally
recognized methodologies for waste management, following ISO 14001 standards for environmental
management systems.
[24 a, b, d, e, f], [25], [27]: In reference to the Domestic BU, in order to achieve the goal, the Company requires
specific ESG parameters and also a certification of the product's carbon footprint in tenders and contracting to
give customers a transparent and comparable assessment of the environmental impact. The goal, which
translates into a voluntary commitment, not imposed by law, is mainly related to the aspect of circular design,
on the use of sustainable materials and the reduction of energy consumption.
In reference to TIM S.A., the company has a goal to dispose of at least 95% of solid waste for reuse or recycling
by 2025. This target represents a voluntary commitment, not mandated by legislative obligations, is within the
waste hierarchy in the following levels:
•
preparation for reuse, ensuring that the products or components can be reused for the same purpose
for which they were generated;
•
recycling, turning waste into new materials or products, thus promoting the circular economy.
[81 a], [81 b i, ii ]: Although it does not have a Group level target, TIM monitors the effectiveness of policies and
actions related to impacts to risks on resource use and the circular economy through the following metrics that
it monitors on a periodic basis:
■
total amount of waste produced;
■
total amount, in weight, of waste not directed to disposal;
■
the quantity, in weight, of waste destined for disposal by type of treatment.
In addition, the group has the above mentioned international-level ISO 14001 certification for environmental
management systems that requires companies to develop processes to reduce waste, improve recycling, and
effectively manage disposal.
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Disclosure Requirement E5-5 - Resource outflows
[35], [36 a, b]: In the Domestic sphere, the TIM Group collaborates with a specialized network of suppliers to
make products that increasingly respond to circular principles, paying particular attention to TIM-branded
products. On modems, which account for about 90% of the total products marketed under the TIM brand, the
first model19 with EPD (Environmental Product Declaration) certification validated by a third party, which
provides transparent and comparable information on the environmental impact of the product while also
specifying the carbon footprint, was introduced in 2024.
Modems respect the following circularity principles:
■
durability: modems are designed to guarantee a long operating life, limiting the use of frequent
replacement of their individual components, containing the production and generation of electronic waste;
■
reusability and reconditioning: discarded modems are reconditioned or disposed of in a sustainable
manner, promoting reuse and reconditioning of materials wherever possible;
■
repairability and disassembly: modems are designed to be easily disassembled allowing easier repair work
and extending the useful life of the device;
■
recycling: TIM uses eco-friendly, recycled and recyclable materials for the production of its modems,
reducing environmental impact and promoting sustainable resource management. When awarding
supplies, TIM requires that the plastics used be recyclable;
■
energy efficiency: TIM modems are designed to ensure low energy consumption during their use,
contributing to a reduced carbon footprint;
■
sustainable packaging: modem packaging is made from 100% recycled and recyclable cardboard,
reducing the use of plastic and other unsustainable materials.
The average lifespan of modems is about 10 years, given the specific technology used by the device,
systematic and non-systematic failures, and the availability of replacement parts. In addition, it was required in
the bidding process that the Mean Time Between Failures (MTBF) be more than 300,000 hours.
TIM guarantees service and repair of modems, also using reconditioned products. The reconditioning of failed
modems is accomplished by retrieving devices returned by customers, checking the status to assess the
feasibility of remanufacturing, replacing standardized functional blocks or components, and re-entering the
technical service cycle to replace other failed devices.
There is also a special focus on circularity principles on the SIM cards as these products are made of 100%
recyclable and recycled plastic (TIM and KENA), while the flyers are all made of FSC-certified paper and the
plastic bags are 100% recyclable.
[MDR-M, 77 a], [36 c], [40]: The rate of recyclable content in products and their packaging is expressed in the
table below. Specifically, the recyclable content rate in products is 93.17%, while the recyclable content rate in
product packaging is 29.94%.
[36 c] Recyclable content - TIM Group
UOM
2024
Recyclable content rate in products
%
93.17
Total weight of recyclable content in product packaging
%
29.94
The recyclable content rate of products is calculated using the weight of the TIM HUB+ modem as a reference
and applying the same weight to TIM-branded modems. The weight of the modem is 860g, while the weight of
the packaging is 360g.
Outbound flows of TIM-branded products are recorded on dedicated management systems, and control over
quantities is carried out directly.
[MDR-M, 77 a], [37 a, b, c, d], [38 a, b], [40]: To monitor waste production and improve recovery and reuse
activities, the Group collects and analyses waste production data on a periodic basis.
In Domestic, waste is classified according to the European Waste Catalogue (EWC) and is obtained through
direct measurements and tracked on dedicated management systems. Waste classification, management
and delivery methods are in accordance with Directive 2008/98/EC of the European Parliament and Council,
also known as the "Waste Framework Directive."
In Brazil, TIM S.A. to classify and manage waste follows a management approach that tracks the inflow and
outflow of resources, which provides an overview of resource consumption, waste generation, and recycling
activities. Hazardous and non-hazardous wastes are classified following ISO 14001 to ensure validation and
comparability.
Relative to its own operations, the TIM Group produces:
■
non-hazardous waste such as mixed packaging and electrical and electronic waste, cables and metals;
■
hazardous waste such as batteries and accumulators.
These types of waste are in line with the TLC sector. In addition, materials in the main types of waste
generated by the Group include mainly paper, wood and plastic, and metal scraps, consisting mainly of iron,
steel and copper.
"
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202
19 Model "TIM HUB Pro"
In 2024, the TIM Group generated 5,395.22 tonnes of waste from business operations. The table below provides
details of the total amount, by weight, of waste destined and diverted for disposal, distinguished between
hazardous and non-hazardous waste, with evidence of the type of treatment.
[37 a, b, c,d] Waste generated - TIM Group
2024
UOM
Hazardous
waste
Non-
hazardous
t
Total
Total waste generated
t
956.64
4,438.58
5,395.22
Waste not directed to disposal
t
946.33
4,294.17
5,240.50
Waste diverted from disposal for preparation for reuse
t
0.00
87.24
87.24
Waste diverted from disposal through recycling
t
522.95
1,734.84
2,257.79
Waste diverted from disposal for other recovery operations
t
0.00
0.00
0.00
Total waste directed to disposal
t
10.31
144.41
154.72
Waste directed to disposal for incineration
t
5.16
11.16
16.31
Waste directed for disposal for landfill
t
5.16
133.26
138.41
Waste directed for disposal for other disposal operations
t
0.00
0.00
0.00
of which non-recycled waste
t
10.31
144.41
154.72
Percentage of waste not recycled
%
1.08
3.25
2.87
With reference to the information on the amount of waste destined for disposal, the Group assumed that 50%
of waste is disposed of in landfills and the remaining 50% is destined for incineration, in line with the "Urban
Waste Reports 2023-ISPRA" study.
For waste not intended for disposal, specific details cannot currently be provided at the Group level. The only
company that currently has this evidence is TIM S.A.. Therefore, the data shown in the table under the
headings "waste diverted from disposal through preparation for reuse" and "waste diverted from disposal
through recycling" refer to TIM S.A. alone.
In general, the data collection process will be refined in order to provide missing disclosures for all Group
companies.
The company takes a structured approach to proper waste disposal, including annual audits that ensure
compliance with environmental regulations and ESG commitments.
[39]: The following is a breakdown of the total amount of hazardous waste and radioactive waste generated
by the Group.
[39] Hazardous and radioactive waste - TIM Group
UOM
2024
Total amount of hazardous waste
t
956.64
Including total amount of radioactive waste
t
0.00
For key information on the subject related to NetCo, please refer to the section “NetCo Performance
Information”, disclosure requirement E5-5 “Outgoing resource flows”.
"
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Resource use and circular economy
203
3.
SOCIAL INFORMATION
Own workforce [ESRS S1]
S1-Strategy
Disclosure Requirement SBM-2 – Interests and views of stakeholders
[S1 SBM-2, 12]: In setting the strategy and business model, the TIM Group takes into account the interests,
opinions and rights of its own workforce. The company collects workers' needs directly through interviews,
questionnaires, meetings and indirectly through workers' representatives by implementing policies and actions
to meet them.
Disclosure Requirement SBM-3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
[S1 SBM-3, 14 a]: In identifying the types of workers subject to material impacts as a result of its operations,
the TIM Group includes the following definitions:
■
employees with whom the Group has a direct contractual relationship that can be for a fixed or indefinite
period, full time or part-time.
■
non-employee workers with whom the Group has an indirect contractual relationship through TIM’s
suppliers. This category includes:
•
workers contracted through the intermediation of temporary employment agencies and/or staffing
agencies by including staff with administered contracts, mainly in staff leasing mode (with reference
mainly to TIM Retail);
•
self-employed workers, understood as independent professionals who provide services or skills to the
company without an employment contract, typically with project collaboration contracts, linked, for
example, to business consulting or health care activities for the Assilt institution.
[S1 SBM-3, 14], [S1 SBM-3, 14 b]: The TIM Group double materiality analysis identified significant impacts on
its own workforce related to both its own operations, in terms of cybersecurity, sensitive data leakage,
incentive systems and training and inclusion initiatives, and value chain operations such as, for example, in
relation to worker health and safety.
Specifically, the analysis identified the following six material negative impacts, two of which were found to be
related to specific incidents, namely:
■
“potential cybersecurity threats may involve the leak of sensitive customer and/or employee data”. In 2024,
there were only 3 low-impact episodes that did not lead to any data compromise or loss
■
“Insufficient safety measures, lack of training and inadequate protective equipment can cause accidents at
work, injuries and damage to the health of employees and workers in the supply chain”, taking into account
the 25 episodes of injury.
The remaining negative impacts, on the other hand, appear to be of a general nature:
■
“Inadequate incentive system can affect employee satisfaction”
■
“Inadequate development, inclusion, and work-life balance initiatives can affect employee satisfaction”;
■
“A working environment that does not provide employees with the “right to disconnect” results in increased
work stress and burnout, with consequences for employee well-being”;
■
“The absence of equal pay at executive, managerial and employee levels may require corrective action to
encourage the attraction of talent”.
[S1 SBM-3, 14 c]: The TIM Group's double materiality analysis identified four material positive impacts related
to the TIM Group's own workforce, which are the result of the set of policies, actions and goals that the TIM
Group has set for itself in the areas of inclusion, gender equality, training and well-being:
■
“The engagement of employees results in greater leadership capacity and professional development,
improving job satisfaction”;
■
“A flexible organizational environment that promotes the well-being of employees and their families can
generate benefits in terms of work-life balance”;
■
“Training and reskilling programs on the subject of digital transformation generate new skills to support the
professionals of the future”;
■
“Incentive mechanisms that encourage employees to adopt sustainable practices promote a culture of
responsibility towards environmental and social impact”.
[S1 SBM-3, 14 d, f, g], [S1 SBM-3, 16]: The TIM Group's double materiality analysis found the following three
material risks related to its own workforce:
■
“Human rights violations within the company and along the supply chain may result in legal liability and
consequent reputational damage”;
"
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■
“Unauthorized access to the personal data of customers or employees can result in legal liability, regulatory
sanctions, economic and financial damage and reputational damage”;
■
“Gender inequalities in terms of pay and positions of responsibility and non-transparent career paths can
have consequences on the attraction and retention of talent”.
No material risks referred to forced labor, bonded labor or child labor were found.
The following three material opportunities related to the own workforce were then found:
■
“Flexible and hybrid working models can improve employee productivity and well-being, whilst reducing
operating costs”;
■
“The enhancement of employer branding along with the provision of professional refresher programs and
talent management strategies can help attract and maintain a highly qualified and diverse workforce”;
■
“The establishment of achievable performance objectives for employees promotes company productivity”.
Some risks and opportunities may affect specific groups of people. In particular, the inequalities that could
have consequences on the attraction and retention of talent, historically concern the female population
despite the company’s constant commitment to reduce the pay gap, while employer branding and talent
management particularly impact young people and women.
Below is the detail of the risk and opportunity considered to have an impact on these groups of people:
■
Risk: “Gender inequalities in terms of pay and positions of responsibility and non-transparent career paths
can have consequences on the attraction and retention of talent”;
■
Opportunities: “The enhancement of employer branding along with the provision of professional refresher
programs and talent management strategies can help attract and maintain a highly qualified and diverse
workforce”.
[S1 SBM-3, 14 e]: The significant changes in the Group’s structure and activities during 2024 make it necessary
to define a new Transition Plan (for more details, see the Disclosure Requirement E1-1 “Transition plan for the
mitigation of climate change”). However, the Company’s long-term strategic direction in environmental
matters, aimed at ensuring the progressive decarbonization of operating activities and the supply chain, while
respecting workers’ rights and in line with international agreements, does not change. Below are the impacts
on workers generated by actions taken by the company also to reduce carbon emissions:
■
Positive impact: “A flexible organizational environment that promotes the well-being of employees and their
families can generate benefits in terms of work-life balance”;
■
Positive impact: “Incentive mechanisms that encourage employees to adopt sustainable practices promote a
culture of responsibility towards environmental and social impact”.
[S1 SBM-3, 15]: Through the double materiality analysis, conducted with engagement initiatives on all
categories of its stakeholders and to periodic internal surveys on the level of worker satisfaction, the TIM Group
pays particular attention to the female population and that of young people, who are more exposed to
possible negative impacts that may result from professional development limitations and issues of gender
inequality.
S1-Impact, risk and opportunity management
Disclosure requirement S1-1 - Policies related to own workforce
[19], [MDR-P, 65 a]: The aspects of the IROs that emerged as significant from the double materiality
assessment for the topic “Own workforce” are covered in the “Code of Ethics and Conduct of the TIM Group”,
in the “Human Rights Policy”, in the “Human Resources and Equal Opportunities Policy”, in the “Policy for
the management of episodes of gender-based and sexual harassment and bullying”, in the “Health and
Safety Policy”, in the “Information Security Policy” and in the “System of rules for the application of
personal data protection regulations in the TIM Group”.
All policies are linked to the following material impacts, risks and opportunities that emerged from the double
materiality analysis:
Negative impacts
■
"A working environment that does not provide employees with the ‘right to disconnect’ results in increased
work stress and burnout, with consequences for employee well-being";
■
"Inadequate development, inclusion, and work-life balance initiatives can affect employee satisfaction";
■
"An inadequate incentive system can have an effect on employee satisfaction";
■
"The absence of equal pay at executive, managerial and employee levels may require corrective action to
encourage the attraction of talent";
■
"Insufficient safety measures, lack of training and inadequate protective equipment can lead to accidents at
work, injuries and damage to the health of employees";
■
"Potential cybersecurity threats may involve the leak of sensitive employee data".
"
Report on Operations of the
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Own workforce
205
Positive impacts
■
"A flexible organizational environment that promotes the well-being of employees and their families can
generate benefits in terms of work-life balance";
■
"Training and reskilling programs on the subject of digital transformation generate new skills to support the
professionals of the future";
■
"The engagement of employees leads to a growth in leadership capacity and professional development,
improving job satisfaction";
■
"Incentive mechanisms that encourage employees to adopt sustainable practices promote a culture of
responsibility towards environmental and social impact".
Risks
■
"Gender inequalities in terms of pay and positions of responsibility and non-transparent career paths can
have consequences on the attraction and retention of talent";
■
"Human rights violations within the company and along the supply chain may result in legal liability and
consequent reputational damage";
■
"Unauthorized access to the personal data of employees can result in legal liability, regulatory sanctions,
economic and financial damage and reputational damage".
Opportunities
■
"The enhancement of employer branding along with the provision of professional refresher programs and
talent management strategies can help attract and maintain a highly qualified and diverse workforce";
■
"Flexible and hybrid working models can improve employee productivity and well-being, whilst reducing
operating costs";
■
"The establishment of achievable performance objectives for employees promotes company productivity".
The Code of Ethics and Conduct guides TIM’s actions in carrying out its business, in the belief that a common
vision of ethics in the daily conduct of business is the essential prerequisite for responsible and sustainable
growth. Specifically, the document includes:
■
the distinguishing values of the Group's culture;
■
the rules of ethical behavior for people in the Group and the guidelines for the conduct to be pursued in
dealings with third parties;
■
the objectives and good practices relating to sustainability and social responsibility, in order to conduct
business activities in a way that safeguards the various aspects of the environmental, social and
governance-related affairs of the Group;
■
the methods of complying with the Code through the description of the commitment of corporate boards
and management teams, as well as the approach to managing violations, whistleblowing, and the
methods of disseminating and adopting of the document.
In relation to the IROs material to the “Own Workforce” theme, the document underlines TIM's commitment
to:
■
ensuring a safe, inclusive, fair and stimulating working environment, within a framework of respect for
workers' rights and trade union freedoms, focusing on the dignity of the individual and the championing of
all types of diversity;
■
combating all forms of discrimination based on gender, sexual orientation, gender identity, ethnic or social
origin, citizenship, language, religion, political or other opinions, membership of a national minority,
disability or age, ensuring that employment relationships are characterized by fairness, equality and equity;
■
ensuring equal opportunities at every stage of the collaborative relationship, from hiring to development to
career progression, basing every decision solely on the criteria of merit;
■
promoting initiatives designed to ensure the work-life balance of employees, the result of a well-
established, widely-recognized philosophy of caring and corporate welfare;
■
encouraging flexible working and guaranteeing the right to disconnect, thanks to a series of technological
tools and IT work platforms.
The ‘Human Rights Policy’ aims to make respect for human rights an essential requirement when engaged in
the Group's activities, and also concerns third parties who enter into relationships with the company.
The Policy identifies Human Rights that may be affected, directly or indirectly, by activities.
In relation to the IROs material to the “Own Workforce” theme, the protection includes fundamental human
rights such as working hours, fair wages, minimum working age, workplace conditions, the protection of
maternity rights, the prohibition of harassment; the rights relating to health and safety; the rights designed to
safeguard diversity and prevent discrimination based on religion, age, gender, sexual orientation or gender
identity, political opinion, social status and origin, race or ethnicity, color, language, physical or mental
disability; the rights agreed with the unions and included in the National Employment Contracts; the privacy
rights of Group employees.
The policy also sets out the processes through which the Company undertakes to respect human rights.
Specifically, all activities within the scope of the policy are subject to periodic internal due diligence inspired by
the Guiding Principles of the United Nations Global Compact , which aims to:
"
Report on Operations of the
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206
■
identify and map the human rights risks arising from the Group's operational activities;
■
confirm that each topic is governed by a specific internal regulatory framework (for example, policies,
procedures), is monitored and tracked (where possible through appropriate indicators) and has had the
related responsibilities assigned to it;
■
establish a gradual improvement strategy which, beginning with simple compliance with local laws, steers
human rights policies and processes towards engagement with the relevant stakeholders, through
appropriate initiatives designed to engage them.
The "Human Resources and Equal Opportunity Policy" includes the following key content and objectives:
■
to improve the management and promotion of human resources in TIM;
■
to illustrate the principles behind the actions carried out by all the companies of the Group, so that they
become current practice within the company and for external partners with whom the Group enters into
business relationships.
With regard to the IROs of reference, the policy underlines the commitment to:
■
ensuring engagement, respect and inclusion, fostering an inclusive working environment, not allowing any
form of discrimination in recruitment, remuneration, access to training, promotion or retirement, and
safeguarding the right to accessibility of systems, equipment and workstations for all employees with
disabilities;
■
fostering a good work-life balance, including flexible working as an integral part of the new organizational
model;
■
delivering development and training, establishing career routes for individuals for career management and
targeted and diverse training courses to consolidate professional skills, upgrade or retrain;
■
adopting a fair and balanced system of remuneration, with fixed and variable components for the short
and long term, which also includes a sustainability component, to attract, retain and motivate people;
■
protecting the health and safety of employees and preventing occupational diseases, assessing safety risks
and adopting the principles, standards and solutions that constitute ‘best practices’ for prevention, both in
terms of appropriateness and effectiveness;
■
protect freedom of association and the right to collective bargaining, recognizing and respecting the right
of workers to form and/or join trade unions for the protection of individual and collective interests;
■
protect personal data, adopting a well-structured organizational model that can ensure the correct
application of the relevant legislation.
With the ‘Policy for the management of episodes of gender-based or sexual harassment and bullying’, the
company is committed to showing zero tolerance for gender-based or sexual harassment, bullying or similar
behaviors, promoting respect between people and creating opportunities to raise awareness on the issue of
harassment, in all its forms, as well as disseminating information on the tools available to everyone to prevent,
limit and manage harassment.
Specifically, the commitments regard:
■
the raising of employee awareness and the training of people;
■
the provision of an anonymous process for reporting and managing episodes of harassment, which can be
accessed by individuals without company mediation;
■
the provision of free legal advice, psychological assistance for the victim and a “Person of Trust”, an
external, impartial figure with experience with harassment, bullying or on sexually inappropriate behavior,
who can provide clarification on company policy or on the channels available to address problematic
situations.
The ‘Health and Safety Policy’, drafted in accordance with UNI EN ISO 45001 provisions, aims to:
■
foster the reduction of accidents, occupational diseases and other accidental events, through the
implementation of appropriate prevention and control measures;
■
ensure full compliance with legal requirements and mandatory safety requirements on the design,
construction and management of buildings;
■
guarantee the best living conditions for working environments and services for people;
■
assess risks to the safety and health of workers, with a view to gradually eliminating these or reducing
them to a minimum through the adoption of best practices.
In relation to the IROs material to the “Own Workforce” theme, the document also underlines TIM’s
commitment to:
■
empowering the organization, on the basis of specific skills, to manage safety in a proactive manner, where
each worker plays an active role in improvement and prevention initiatives;
■
promote a transparent dialogue with workers and their safety representatives with regard to activities,
performance and goals related to health and safety.
The ‘Information Security Policy’ focuses on the protection of information and all related assets, as a
fundamental element for the safeguarding and continuity of business processes.
"
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The Group undertakes to:
■
establish processes, roles and responsibilities to ensure information security;
■
guarantee a level of confidentiality, integrity and availability of information that is proportional to the
respective business value, or to the direct or indirect losses that a security incident may have with regard to
the services provided to customers.
In relation to the IROs of reference, the policy also aims to:
■
guarantee the security of personal information pertaining to employees, in compliance with the legislation
in force, and in order to protect the employee;
■
raise awareness and train staff on the safety of information.
In order to achieve the objectives set out in the policy, TIM has adopted an Information Security Management
System designed to ensure the correct governance of specific processes and activities for the security of
information assets.
Finally, the “System of rules for the application of personal data protection regulations in the TIM Group”
sets out the norms and operating rules for the TIM Group that govern the processing of personal data, in
accordance with the applicable legal and regulatory provisions on personal data protection.
This document concerns the correct processing of personal data of all the company's stakeholders, defining
the methods of corporate monitoring and the corresponding responsibilities, as well as the technical/
administrative measures for data protection.
With regard to TIM workers (employees and those treated as such), the document draws attention to the
regulations and procedures to be observed when processing the personal data of the abovementioned parties
during the phase prior to the establishment of the working relationship, during the course of the same, and in
the termination phase.
To place the Group’s policies in context within the Brazilian business world, TIM S.A. has also established a
series of policies to guide and manage the impacts on its workforce. The following are of particular note:
■
The “Diversity and Inclusion” policy, which aims to set out guidelines for managing diversity and inclusion
issues in processes related to managing people at TIM S.A at all hierarchical levels, including the presence
of social groups (gender, race/ethnicity, generations) on the company’s Board of Directors. TIM S.A. also
encourages its partner companies and suppliers to foster inclusive working environments and relationships,
with a particular focus on improving diversity and implementing policies and programs designed to
promote inclusion.
■
The “Health and safety at work” policy, which sets out the principles to be applied across all TIM activities
in Brazil with a view to promoting continuous improvement in terms of carrying out health and safety-
related actions at work. Among other things, TIM Group’s commitments include compliance with the
relevant regulations, risk management, activities to provide training and raise awareness, and the analysis
of accidents or injuries, with a view to preventing these or minimizing the effects thereof.
■
The goal of the “Corporate Development and Learning” policy is to establish guidelines and criteria for
offering individual or collective development and learning opportunities, in line with the strategy and the
corporate culture of the Group, and in a manner that values the contribution of each individual. The policy
sets out the model, plan and actions for development and learning.
[19], [MDR-P, 65 b]: The Code of Ethics and Conduct applies to all people in the Group, with particular reference
to the members of the Corporate Boards, management, employees of all Group Companies, external
collaborators, and, where required by the company's procedural system, to third parties in business
relationships with the Group. The Human Rights, Human Resources Policy and Equal Opportunity Policy covers
all people in the TIM Group and aims to protect the rights of all third parties who enter into business relations
with the company.
The Information Security Policy is for all Group functions and companies that, within the scope of their specific
responsibilities, operate in various ways using company information and data. The policy for the management
of episodes of gender-based or sexual harassment and bullying and the system of rules for the application of
personal data protection regulations in the TIM Group are aimed at TIM’s employees.
[19], [MDR-P, 65 c]: The adoption of the Code of Ethics and Conduct was decided by resolution of the TIM
Board of Directors on March 15, 2023. A periodic review of the Code is also ensured to implement any
necessary updates.
The adoption of the Human Rights Policy was implemented from the first levels of the main company
functions affected, including Corporate Communication & Sustainability, Human Resources & Organization,
Compliance, Legal & Tax as well as the other business functions. Specifically then, the Corporate
Communication & Sustainability Department is responsible for updating the policy; the Human Resources &
Organization department is responsible for complying with the policy with respect to TIM's people, while the
Procurement department is responsible for complying with the policy in relation to the involvement of the
Group's suppliers; the Compliance department oversees the risk of non-compliance with applicable regulations.
The Human Resources and Equal Opportunities Policy was drafted and approved in collaboration with the
Human Resources Department and the Gender Equality Steering Committee.
The Policy for the management of episodes of gender-based or sexual harassment and bullying has been
drafted and approved in collaboration with the Compliance department and the Human Resources &
Organization department.
The adoption of the ‘TIM Health and Safety Policy’ is guaranteed by the Health, Safety & Environment
department, which ensures the monitoring of issues relating to prevention, safety and health for workers, and
by the Real Estate department, which is responsible for implementing compulsory occupational health and
safety measures in company buildings.
"
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The Information Security Policy is approved by the Compliance, Public Affairs, Security & International Business
Office and Human Resources & Organization departments, in order to ensure consistency between TIM’s
strategy and the policy content.
The adoption of the ‘‘System for the application of personal data protection regulations in the TIM Group’, is
ensured both within TIM and in the Group companies by internal privacy officers, with any necessary support
and advice provided by the Privacy department (TIM) and the Privacy Coordinators (Group companies). In fact,
the Privacy department is responsible, within the context of the role of TIM's Data Protection Officer (DPO), for
steering, coordinating and overseeing the correct application of privacy legislation at Group level; in the
Group’s companies, this role is held by the Privacy Coordination figure, in conjunction with TIM’s DPO.
[19], [MDR-P, 65 d]: The Code of Ethics and Conduct and the Human Resources and Equal Opportunities Policy
are in line with the principles of the United Nations Global Compact, which TIM has joined.
As far as the Human Rights Policy is concerned, the key third-party references used to draft his document are
as follows:
•
UN Universal Declaration of Human Rights, 1948
•
UN International Covenant on Civil and Political Rights, 1976
•
UN International Covenant on Economic, Social and Cultural Rights, 1976
•
UN Human Rights Council, Guiding Principles on Business and Human Rights: Implementing the United
Nations “Protect, Respect and Remedy” Framework, A/HRC/17/31, 2011
•
UN High Commissioner for Human Rights, Guiding Principles on Business and Human Rights,
Implementing the United Nations “Protect, Respect and Remedy” Framework, 2011
•
UN Global Compact Office and Office of the United Nations High Commissioner for Human Rights, A
Guide for Business: How to Develop a Human Rights Policy (2011 e 2015)
•
UNICEF and The Danish Institute for Human Rights, Children’s Rights in Impact Assessments,
December 2013
•
International Labor Organization, Declaration on Fundamental Principles and Rights at Work, 1998
•
International Labor Organization, Conventions 1, 29, 30, 87, 98, 100, 105, 111, 135, 138, 144, 155, 161, 171,
175, 182, 183
•
International Labor Organization Tripartite Declaration of Principles concerning Multinational
Enterprises and Social policy
•
Amnesty International — Italian chapter, Universal Declaration of Human Rights
•
CSR Europe Assessing the effectiveness of company grievance mechanisms, 2013
•
European Commission, ICT Sector Guide on Implementing the UN Guiding Principles on Business and
Human Rights, 2013
•
OECD, Guidelines for Multinational Enterprises, 2011
•
Charter for Equal Opportunities and Equality at Work, signed by Telecom Italia in 2010.
For the “Policy for the management of episodes of gender-based or sexual harassment and bullying”, the main
third-party references used when drafting the policy are as follows:
•
Communication from the Commission of the European Communities to the Council and the European
Parliament, dated November 8, 2007, to present the European Framework Agreement on workplace
harassment and violence signed on April 26, 2007 by CES, BUSINESSEUROPE, UEAPME and CEEP
•
CCNL TLC February 1, 2013: Art.45 — Company relationships (see points 1, 2 and 4) and Art. 48 —
Dismissal for misconduct: A) Dismissal with notice — point 2 - letter g); B) Dismissal without notice –
point 4 - letter o)
•
Interconfederal Agreement of January 25, 2016. Framework Agreement on Harassment and Violence
in the Workplace by Confindustria and CGIL, CISL and UIL
•
Framework
Agreement on harassment and violence in the workplace signed between Assotele
— Asstel and the SLC CGIL, FISTEL CISL, UILCOM UIL on January 16, 2019
•
Italian Civil Code: Article 2043: Non-contractual liability
•
Criminal Code (Art. 594: Injuria (insult), Art. 595: Defamation, Art. 604 bis: Propaganda and incitement
to commit crimes on grounds of racial, ethnic and religious discrimination, Art. 609 bis: Sexual violence,
Art. 612: Threat, Art. 612 bis: Persecuting acts, Art. 660: Harassment or disturbance to people)
•
Legislative Decree May 30, 2005, n. 145 “Implementation of Directive 2002/73/EC on equal treatment
between men and women, with regard to access to work, training and professional promotion
•
Italian Law no. 38 of April 23, 2009 “Conversion into law, with amendments, of Decree-Law no. 11 of
February 23, 2009, containing urgent measures in the field of public safety and the fight against sexual
violence, as well as with regard to acts of persecution”
•
Legislative Decree no. 81 of June 15, 2015, “Organic regulation of employment contracts and revision of
the legislation on professional duties, in accordance with Article 1, paragraph 7 of the Italian Law no.
183 of December 10, 2014” (“Jobs Act”)
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•
Italian Law no. 179 of November 30, 2017, “Provisions for the protection of whistleblowers reporting
offences or irregularities that have come to their knowledge as part of public or private employment”
•
Budget Law 2018 (Italian Law no. 205 of December 27, 2017)
•
Italian Law no.69 of July 19, 2019, “Amendments to the Criminal Code, the Code of Criminal Procedure
and other provisions regarding the protection of victims of domestic and gender-based violence.”
The Health and Safety Policy is inspired by the international standard on occupational health and safety
management systems, ISO 45001.
For the Information Security Policy, the main external references of the document refer to:
•
ISO/IEC 27000:2018 - Information technology - Security techniques - Information security management
systems - Overview and vocabulary
•
ISO/IEC 27001:2022 - Information security, cybersecurity and privacy protection – Information security
management systems - Requirements
•
ISO/IEC 27002:2022 - Information security, cybersecurity and privacy protection — Information security
controls
•
ISO/IEC 27035-1:2023 Information technology - Information security incident management - Part 1:
principles and process
•
ISO/IEC 27035-2:2023 Information technology - Information security incident management - Part 2:
Guidelines to plan and prepare for incident response
•
ISO/IEC 27035-3:2020 Information technology – Information security incident management - Part 3:
Guidelines for ICT incident response operations.
For the ‘System of rules for the application of personal data protection regulations in the TIM Group’, the main
regulatory references are as follows:
•
General Data Protection Regulation (GDPR)
•
Personal data protection code (Legislative Decree 196/2003 as amended)
•
Data Protection Authority Orders
[19], [MDR-P, 65 e]: The Group Policies specifically take into account aspects identified as fundamental and
priority by analyses conducted internally and with internal stakeholders through questionnaires and interviews.
These aspects are strongly linked to the operations of the TIM Group Companies.
[19], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents
available to its stakeholders on its corporate intranet and on the Group’s company website, in compliance with
“least privilege” and “need to know” principles. Where appropriate, for relations with third parties, specific
contractual clauses will be added relating to the acceptance and/or compliance with some of the policies, such
as the Code of Ethics.
Information relating to TIM S.A.’s policies is instead available on the relevant institutional website in the
dedicated “Regulations and Policies” section https://ri.tim.com.br/en/esg/regulations-and-policies/
[20 a, b]: TIM Group’s Human Rights Policy explicitly recalls the OECD Guidelines for Multinational Enterprises,
the Declaration on Fundamental Principles and Rights at Work issued by the International Labor Organization,
and is in line with the principles of the United Nations Global Compact (TIM is among the founders and active
participants of the Global Compact Networks in Italy and Brazil).
In order to identify and address potential negative impacts on human rights, Tim conducts regular due
diligence to identify and map the potential risks that derive from the Group's operational activities, and to
establish measures for improvement.
The Policy, which is referred to in the majority of company policies, operating procedures, and management
systems, involves all its own workers, explicitly encouraging feedback with a view to achieving improvement.
[21]: The Group’s Human Rights Policy is aligned with all the guiding principles of the United Nations, the OECD
and the International Labor Organization, as can be seen from the following references explicitly mentioned in
the document:
•
UN Universal Declaration of Human Rights, 1948
•
UN International Covenant on Civil and Political Rights, 1976
•
UN International Covenant on Economic, Social and Cultural Rights, 1976
•
UN Human Rights Council, Guiding Principles on Business and Human Rights: Implementing the United
Nations “Protect, Respect and Remedy” Framework, A/HRC/17/31, 2011
•
UN High Commissioner for Human Rights, Guiding Principles on Business and Human Rights,
Implementing the United Nations “Protect, Respect and Remedy” Framework, 2011
•
UN Global Compact Office and Office of the United Nations High Commissioner for Human Rights, A
Guide for Business: How to Develop a Human Rights Policy (2011 e 2015)
•
UNICEF and The Danish Institute for Human Rights, Children’s Rights in Impact Assessments,
December 2013
•
International Labor Organization, Declaration on Fundamental Principles and Rights at Work, 1998
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•
International Labor Organization, Conventions 1, 29, 30, 87, 98, 100, 105, 111, 135, 138, 144, 155, 161, 171,
175, 182, 183
•
International Labor Organization Tripartite Declaration of Principles concerning Multinational
Enterprises and Social policy
•
OECD, Guidelines for Multinational Enterprises, 2011.
[22]: In its Policy on Human Rights, TIM explicitly condemns any form of forced or bonded labor, as well as any
form of exploitation of children and young people, specifying also that people under 18 years of age are not
employed.
[23]: TIM operates a Health and Safety management system (SSL) that includes procedures and policies
designed to ensure that the working environment is safe and that measures are implemented to prevent
injuries and occupational diseases.
In accordance with the provisions of the UNI EN ISO 45001 standard, the ‘Health and Safety Policy’ establishes
the principles at the core of the management system with regard to the prevention and reduction of injuries,
occupational diseases and other accidental events, through the implementation of appropriate prevention
measures and checks. There are also specific internal procedures that govern the management of injuries and
accidents. Within Italy, the procedure relating to the “management of injuries in workers” specifies that
occupational accidents must be subject to specific investigations designed to examine the causes of the event,
in order to implement any corrective measures and actions for improvement with the direct involvement of the
lines concerned and the Human Resources department. In Brazil, the internal procedure entitled “Management
of work events” stipulates that all accidents or injuries must be analyzed by the team of occupational health
and safety professionals, that the causes must be identified, and that action plans are drawn up with a view to
preventing further events of the same nature in the future.
TIM S.A. also adopts an occupational health and safety management system within the Brazilian context, with
essential processes and initiatives to maintain a healthy, safe environment for its workers. The key elements of
this system include compliance with reference standards; risk management; training and awareness activities;
accident prevention and mitigation; process of continuous improvement.
[24 a, b]: When addressing the issue of discrimination within its policies, TIM takes race and ethnic origin, skin
color, gender, sexual orientation, gender identity, disability, age, religion, political opinions, national ancestry or
social background into consideration, as well as any other form of discrimination.
TIM implements a number of policies designed to promote equal opportunities and inclusion, including those
related to the prevention and management of episodes of gender-based and sexual harassment and bullying.
Specifically:
■
in the Code of Ethics and Conduct, TIM prohibits any form of discrimination or harassment
■
in the Human Rights Policy, TIM sets out its commitment to being a proactive promoter and leader of these
rights
■
in the Human Resources and Equal Opportunities Policy, TIM condemns all forms of discrimination,
harassment and mobbing
■
In the Policy for the management of episodes of gender-based and sexual harassment and bullying, TIM
undertakes not to tolerate gender-based or sexual harassment or bullying, or any similar behavior.
[24 c]: In its policies, the TIM Group demonstrates a particular focus on employees who belong to groups that
are particularly at risk of vulnerability, such as women, people with disabilities, older workers, workers with
health problems and workers belonging to racial, ethnic or religious minorities.
[24 d]: To ensure that discrimination is prevented, mitigated and addressed once detected, TIM has adopted a
specific whistleblowing procedure that allows workers to report illegal behavior and violations of the code of
ethics within the organization, without fear of reprisals.
Disclosure Requirement S1-2 - Processes for engaging with own workforce and
workers' representatives about impacts
[27 a, b, c]: The Group is dedicated to constantly engaging and dialoguing with its workforce, both directly and
through employee representatives. For example, in 2024, the Group involved a sample of 463 people from the
"People of TIM" category (one of the Group's 8 main stakeholder categories) in the double relevance analysis
designed to identify the relevant impacts of TIM activities on the environment, people and governance.
In the Domestic sphere, the company also sought the constant involvement of employee representatives,
organizing more than 80 meetings at national and regional level in 2024. Themes such as supplementary
corporate bargaining (performance-related bonus), the safeguarding of employment boundaries (solidarity
contract) and organizational developments were discussed.
In addition, several meetings of the joint commissions (bodies within the area of consultation) were held, as
provided for by the TIM industrial relations model - essential for maintaining a dialogue between the social
partners and the company. These committees, composed of representatives from the company and labor
organizations, are tasked with taking a technical look at specific subjects, including training, occupational
health and safety, welfare and equal opportunities.
During trade union meetings, any general demands expressed by workers can also be discussed, which can
then be highlighted to the company (such as but not limited to: work-life balance, training, working
hours). Provided that they are sustainable and compatible with the business choices, these instances can be
finalized through union agreements.
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TIM's industrial relations model also aims to promote information, consultation and negotiation within the
framework of legal and contractual provisions, which includes representation at both national and regional
levels.
In particular, Unitary Trade Union Representations (RSUs) are present at regional level, in order to encourage
adequate participation in the grass-roots discussion. In addition to the protections and rights afforded by law
and by the collective bargaining agreement, TIM also recognizes specific additional prerogatives for the trade
union representatives in the company. Employees can use the company intranet to view any news related to
the contents of the main trade union agreements. With regard to the involvement of the representatives, the
resources are established in the budget, in accordance with the projects and agreements that the company
intends to implement. The Industrial Relations function within the Human Resources & Organization
Department has oversight of the involvement of representation, within the legal and contractual frameworks
applied, while for the double relevance analysis, the involvement of own workers is in charge of the
Sustainability function within the Corporate Communication & Sustainability Department.
TIM S.A., in managing its actual and potential impacts, also involves employee representation at the national
and territorial levels, particularly in situations involving collective bargaining agreements and their respective
negotiations, the profit-sharing program, and any internal reorganizations that could result in massive
employee layoffs. As in Italy, collective bargaining is applied to all employees.
In TIM S.A., the People, Culture & Organization function has within it the Trade Union & Labor Relations
function, which is responsible for and monitors relations and negotiations with trade unions.
[27 d]: The TIM Group operates in full compliance with the relevant legislation on human rights, and is
committed to preventing any violations related to its activities in accordance with the UN guidelines.
Accordingly, even in the absence of a global framework agreement between the company and the workers'
representatives regarding respect for the human rights of its own workforce, the company has adopted a
specific policy on Human Rights which is aimed at all of its stakeholders. Furthermore, when establishing trade
union agreements and the regulations governing the employment relationship, TIM takes all fundamental
human rights into account, with the commitment to ensuring that they do not affect freedom, dignity, equality
and justice.
[27 e], [28]: The TIM Group assesses the effectiveness of its own worker involvement by monitoring worker
participation in the relevance analysis and through analysis of responses received to the survey on the Climate
and Welfare Survey.
In particular, the views gathered through interviews and questionnaires, contribute to the construction of the
Group's inclusion plan that values the uniqueness of each individual, ensuring flexibility and customization of
corporate initiatives, policies and projects. The main areas of intervention include disability, sexual orientation,
gender identity, ethnicity and religion. TIM actively promotes an inclusive culture both inside and outside the
organization. In Brazil, TIM S.A, promotes a Diversity and Inclusion program that values vulnerable categories
of the workforce through the Affinity Groups initiative, which includes Women+, +Colors, Pride+, We Are+ and
Generations+, with the aim of promoting an inclusive dialogue and culture and implementing meaningful
projects to enhance differences in the company.
Disclosure Requirement S1- 3 - Processes to remediate negative impacts and
channels for own workers to raise concerns
[32 a, b]: TIM monitors significant negative impacts that have arisen for its own workforce with specific policies,
processes, actions and reporting channels if workers wish to communicate concerns or needs directly to the
Company and have these addressed.
With reference to this last point, TIM and the Group companies provide internal channels to report any
information regarding TIM Group Staff and/or third parties to the Supervisory Body, regarding violations of laws
and regulations, the Group's Code of Ethics and Conduct, the 231 Organizational Model, as well as the system
of rules and procedures in force in the TIM Group.
In the Domestic , the main reporting channels are noted below:
■
Whistleblowing
•
Whistleblowing Portal, which is designed to guarantee the confidentiality of the whistleblower’s
identity through the use of secure protocols and encryption tools. After entering the report, the portal
provides a Unique Identifier Code, which can then be used to check the processing status of the report
and to send and receive communications (including anonymously). This channel is available to
employees, former employees, job candidates, partners, customers, suppliers, consultants,
collaborators, partners and, more generally, anyone who has a legitimate interest in the business
activities of the TIM Group. The reports are received by the TIM Supervisory Body or the TIM Group
company concerned, which then uses TIM's Audit department to carry out in-depth investigations;
•
voicemail of the toll-free number 800664411 of the Whistleblowing service;
•
standard mail to the Supervisory Body of TIM or the TIM Group company concerned, addressed to the
company's registered office.
■
Health, safety and environment
•
an internal reporting channel, accessible to each department manager within the company, in relation
to the Health, Safety and Environment component, implementing the regulation "Employer
responsibilities regarding health and safety in the workplace and environmental protection - checks on
the work of delegated persons";
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•
internal reporting channel for complaints relating to construction activities and network maintenance
(noisy manhole covers, damage to underground services on site, etc.).
■
Security
•
internal email reporting channel that employees can use if they become aware of a security
vulnerability in systems, corporate applications or TIM-branded products accessible from the internet;
•
an intranet portal for reports of security incidents, which concern human, material and immaterial
resources;
•
an internal channel that ensures 24-hour monitoring of critical events and the management of IT
security incidents in conjunction with the relevant functions;
•
a form dedicated to reports relating to episodes of "abuse", to be understood as "any activity
committed on the network and/or through the use of TIM Group assets for the purpose of committing
crimes or causing damage to third parties, in violation of company rules and/or legislative provisions";
•
in internal channel for reporting spam/phishing emails, accessible from employee inboxes:
spam@telecomitalia.it.
In Brazil, TIM S.A. in addition to the Whistleblowing channel, provides its employees with an additional
anonymous reporting channel for workplace accidents, within the corporate intranet. In addition, employees
can directly contact the Health, Safety and Environment team and the People, Culture and Organisation team
through the Meu RH channel, to report any specific concerns or needs.
[32 c]: Within the Group, the Supervisory Board, of TIM and its respective subsidiaries oversees the process of
handling complaints and grievances concerning personnel, maintaining the responsibilities and prerogatives of
the Board of Statutory Auditors for reports addressed to it, including complaints under Article 2408 of the Civil
Code.
In order to follow up on reports, the TIM Supervisory Bodies and those of the Group’s subsidiaries rely on the
assistance provided by TIM’s Audit Department, which carries out the investigation, acquiring the necessary
information from the departments concerned and engaging the relevant business functions, whilst also
making use of experts or advisors external to TIM, where deemed necessary.
The investigative phase of the Report verifies the merits of the reported circumstances, reconstructs the
management and decision-making processes based on available evidence, and provides guidance for
corrective actions to resolve the detected irregularities. Evaluations of the merits or appropriateness of
decision-making and management aspects are not included in the inquiry analysis unless they are manifestly
unreasonable.
At the end of each investigation, the results are communicated to TIM's supervisory body, and, for reports on
subsidiaries, also to the supervisory body of the relevant subsidiary company. The Supervisory Body then
decides whether or not to close the report, highlighting any failure to comply with rules/procedures, without
prejudice to the exclusive competencies of the Chief Human Resources & Organization Office function, with
regard to disciplinary actions.
The results of the investigations are summarized in a report or, for significant and/or complex cases, in a
preliminary note. This includes a judgment based on the facts reported, the outcome of the activities carried
out and the results of any previous investigative activities, as well as any indications for corrective actions in
the areas and business processes examined.
The Supervisory Body must track the progress of the corrective actions via the information periodically
provided by the Audit Department.
In Brazil, TIM S.A. has implemented a periodic monitoring system for employee health and safety risks, which
includes direct observations, document analysis, inspections, and internal and external audits. The company
conducts periodic simulations of emergency cases and has an Emergency Response Plan (ERP) for handling
critical scenarios.
To ensure a fair and safe working environment, TIM S.A. provides mechanisms for reporting and handling
complaints related to personnel issues. In accordance with the Collective Bargaining Agreement 2024/2026,
employees have access to free legal aid for criminal proceedings related to their functions, except in cases of
negligence or willful misconduct.
The company also offers specific tools for handling reports of discrimination, harassment or other forms of
intolerance in the workplace (LGBTI+phobia, racism, misogyny, ageism, religious intolerance, moral or sexual
harassment). Employees who are victims of such situations can seek legal support and benefit from the
company's guaranteed criminal defense.
TIM S.A. provides a social worker and/or psychologist for psychological support to employees in vulnerable
situations. This service is part of the Bem+Estar Conception Program, aimed at promoting the well-being of
employees and their families.
The company guarantees the confidentiality of reports and has set up dedicated communication channels for
handling complaints and grievances, ensuring an appropriate intake and response process in compliance with
current regulations and company best practices.
[32 d]: In reference to reporting channels for the workforce, at the Group level TIM provides various tools and
initiatives integrated into the work environment:
■
Corporate intranet platform, which serves as a central hub for internal communications and includes a
section dedicated to reporting channels, including the Whistleblowing channel.
■
TIM Academy training platform, accessible from the Corporate Intranet, offering training courses on
corporate issues, including modules dedicated to Whistleblowing, sexual harassment prevention and anti-
bullying.
"
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■
Internal events with Q&A sessions, available both live and offline, to provide clarification on reporting
processes and to collect questions, evaluations and suggestions through feedback questionnaires.
With reference to TIM S.A. alone, the Whistleblowing channel is made available to all employees through
structured and continuous communication, which includes:
■
The dissemination of corporate policies and procedures in official regulatory documents.
■
The inclusion of information in the company's Code of Ethics.
■
Mandatory online training to make employees aware of the use of reporting channels.
■
The publication of informative posts on the company intranet homepage.
■
Participation in live sessions and other outreach initiatives aimed at enhancing awareness and accessibility
of reporting mechanisms.
[32 e]: The company controls and monitors the issues raised through the supervisory bodies of TIM and the
subsidiary companies, making use of the support of TIM’s Audit department and ensuring the effectiveness of
the various channels, following up on reports and analyzing these in a detailed and timely manner.
At TIM S.A., the Whistleblowing channel is managed by the company's Internal Audit department, which
reports directly to the Board of Directors. Complaints are submitted during regular meetings of the Internal
Control Committee (CAE) and the Control and Risk Committee (CCR). The effectiveness of the whistleblowing
channel is assessed annually through independent evaluations (external and internal), with regard to the way
that it is managed, as well as to the management systems in place. In addition, it is monitored and measured
through key performance indicators. Employee feedback is also collected through surveys conducted after
presentations given to different functions of the Company.
[33]: TIM monitors the degree of awareness and reliability of reporting channels through employee feedback,
collected through:
■
Analysis of interaction with information materials on the intranet;
■
Feedback questionnaires in online training courses;
■
Internal events with question and comment sessions;
■
Business climate surveys, which include assessments of trust in reporting channels.
To protect workers, including their representatives, from retaliation, TIM has adopted specific policies, such as
the Whistleblowing Procedure and the Policy on Handling Gender, Sexual Harassment and Bullying Incidents.
These documents guarantee anonymity of reports, confidentiality of information, and a zero-tolerance policy
toward any form of retaliation.
In TIM S.A., the Whistleblowing channel is supported by an ongoing awareness and training program, while the
results of business climate surveys guide any improvement actions.
Disclosure Requirement S1-4 - Taking action on material impacts on own workforce,
and approaches to managing material risks and pursuing material opportunities
related to own workforce, and effectiveness of those actions
[37], [MDR-A, 68 a, b,c, e], [MDR-A, 69 a, b, c]: In addition to the policies on “own workers”, which provide the
framework for the coherent and informed management of business activities, the Group also implements
measures and resources related to the following issues:
1.
working conditions: adequate wages; working hours, work-life balance; health and safety;
2.
equal treatment and opportunity: training and skill development, gender equality and equal pay for
equal value work; diversity, gender equality and equal pay for work of equal value;
3.
other labor-related rights collective bargaining: social dialogue; freedom of association; confidentiality.
The actions are aimed at both own workers in Italy and Brazil and, where not specified they constitute an
ongoing nature and are repeated annually.
Due to the corporate discontinuity that occurred on July 1, 2024, it is not possible to provide comparative
information on the activities compared to those of previous years.
1.
Working conditions
The main, ongoing actions in the areas of adequate wages, working hours, work-life balance, and health and
safety are highlighted below.
Domestic BU
■
Adequate wages
•
Adoption of remuneration policies aimed at ensuring adequate remuneration for the entire corporate
population and resulting in individual and collective short- and long-term incentive systems (Result
Bonus, Sales Incentive Plans, Short Term and Long Term) for the achievement of corporate objectives
of a commercial, economic-financial and ESG scope.
"
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•
Definition of indicators in managerial incentive systems with targeted targets aimed at reducing the
Gender Pay Gap.
■
Work-life balance
•
Continued implementation of Agile working. The agreement, which was entered into on November 22,
2022 and is currently being extended until March 16, 2025, provides for three days of work at home and
two at headquarters. Membership is voluntary and there is provision for expansion of flexible working
days for certain personal situations such as pregnancy, maternity/paternity, and medical treatment. In
2024, the take-up rate was 93.48% of eligible employees.
■
Health and Safety
•
Management and verification of measures to protect the health and safety of workers, in line with
Legislative Decree 81/08 through the preparation of the Risk Assessment Document (DVR) by the
Health Safety Environment (HSE) function, which contains all prevention measures in order to manage
and reduce risks in the workplace.
•
Preparation of investigations by the local safety departments, which deal with emergency plans, the
appointment of firefighters, the management of first aid, the planning of evacuation tests and the
conduct of inspections necessary for the selection of risk reduction measures in extraordinary
situations;
•
Periodic redefinition of environmental requirements necessary for the mitigation of hazards in the work
environment. The activity provided OpEx of €68k.
•
Management and organizational engagement actions to develop an organizational culture that
include semi-annual participation of the Head of Prevention and Protection (RSPP) in the Safety
Steering Committee;
•
Informational activities through the company intranet or in person to collect reports of employee
concerns when verifying the application of the rules.
•
Preparation of visit protocols that covered about 4,600 TIM workers for the following risks: VDU work,
risk of manual handling of loads for technical roles, risk of working at height, risk of electromagnetic
fields, chemical risk.
•
Dedicated training: 25,681 hours of health and safety training were conducted during 2024, including
on first aid and environmental emergency management.
Financial resources used for health protection activities amounted to an OpEx of €425.98k.
TIM S.A.
■
Work-life balance
TIM S.A. provides its employees and family members with a health care program that includes:
•
social service and personal support: free support for employees and family members in sensitive social
situations, available 24/7 via phone or e-mail, with remote services included.
•
Women's Versions program: free consultations for menopausal women, with opportunities to
participate in group meetings and lectures on the topic.
•
Sintonize em Você: promotion of emotional well-being through conversation circles, workshops, and
psychological support to cope with difficult moments and know when to ask for help.
■
Health and Safety
•
Projects and campaigns to promote health and safety culture: Each year, Bem+Estar Week offers
safety, health and environmental initiatives for employees. In 2024, the main topics covered were
physical and mental health care and awareness of diseases such as hypertension and sexually
transmitted diseases.
2. Equal treatment and opportunity
The following highlights the main, ongoing actions in training and skills development, gender equality and
equal pay; diversity and inclusion.
Domestic BU
■
Training and development
•
Onboarding program dedicated to more than 300 newly-hired employees, with training, work
experience visits and meetings with members of the management team.
•
“Women Empowerment” path dedicated to 200 women with high potential for growth in managerial
roles. The financial resources used in 2024 amounted to OpEx of €1125k.
•
Individual development plans through coaching paths. In 2024, 400 people were involved with a total
of 4,000 hours provided. The financial resources used in 2024 amounted to OpEx of €25k.
•
Collective development plans, such as the “Red Card” project dedicated to 25 new managers, with a
view to providing them with the tools they need to address complex issues within the environment and
to manage resources. The financial resources used in 2024 OpEx were €24k.
•
A “reskilling and upskilling” project focused on technological skills and soft skills to support
digitalization. In 2024, the initiative recorded 280,000 hours of training and the involvement of 14,400
people. The financial resources used in 2024 amounted to OpEx of €1,300k.
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•
Initiatives for 1,100 colleagues Under 35 including: participation in Mentoring Academy to enhance
engagement and strengthen strategic skills; enrollment in the Linkedin Learning platform, with an
ecosystem of more than 30,000 useful training modules to boost continuing education; the Young
Generation with Higher Education Engagement activities and the Ideathon.
•
Age Empowerment Program: initiatives to improve motivation and employability with special
emphasis on senior employees.
•
Staff assessment: 170 assessments were conducted in 2024 dedicated to entry-level management
positions (agile assessment) and leadership roles with executive weight (Managerial assessment).
•
Performance Management involves continuous annual evaluation of the performance and behavior of
the entire corporate population. The financial resources used in 2024 amounted to OpEx of €112k.
■
Diversity and Inclusion
•
Disability Management Plan with the goal of empowering colleagues to enable them to go about their
working day peacefully. The financial resources used in 2024 amounted to OpEx of €26.7k.
•
“Deaf Inclusive” program to enable colleagues to communicate more easily through supplementary
technological equipment.
•
“Nobody Excluded” project with the goal of providing specific computer equipment to people with
disabilities;
•
Annual awareness and training programs on dyslexia and neuro-diversity, designed to increase
awareness within the company.
TIM S.A.
■
Training and development
•
“Black Pearls” program to enhance and accelerate the careers of “black professionals” with potential
so that they can assume leadership positions in the Company.
•
“TIM 50+” program for employees over 50 years old designed to promote development and encourage
participants to keep an open mind towards change and new technologies.
•
Partnership with "Todas Group," a platform that aims to develop women's leadership.
■
Diversity and Inclusion
•
Diversity & Inclusion program which, in 2024 focused on the five pillars of Diversity and Inclusion:
Gender, People with Disabilities, LGBTI+ People, Race/Ethnicity and Generations.
3. Other work-related rights
Domestic BU
■
Data protection
•
TIM Group privacy operating model: ensures the proper implementation of data protection regulations,
developed according to the principle of privacy-by-design and subject to periodic improvements. It is
based on the: transposition of legal provisions, that is, on the constant study and interpretation of
regulations; clear definition of roles and responsibilities regarding personal data processing
compliance; provision of information to various categories of data subjects (e.g., employees/workers)
on the processing of their personal data; assessment of the risk associated with processing activities,
recorded in the appropriate Registries (under the GDPR); taking of appropriate technical and
organizational measures to ensure an adequate level of security.
TIM S.A.
•
TIM S.A. invests in and promotes various actions aligned with global cybersecurity practices and in
compliance with the General Data Protection Law (LGPD), no. 13.709/2018. In addition, TIM S.A. has
been ISO 27001 certified since 2022. The main actions of the information security team include:
appointment of the figure of the Data Protection Officer (DPO); creation of the Data Protection
Committee; employee training, review of internal regulatory documents, hiring of a digital tool to assist
and manage Holder's Rights, creation of the Privacy Center on TIM's website, among others.
[37], [MDR-A, 68 d]: Within the context of IT security, in 2024, there were no security incidents that had the
characteristics of a “material event”, with the corresponding reporting obligation in accordance with the
relevant company process. There was only one incident with a medium impact, caused by a DDOS attack
characterized by unusual attack methods; this was promptly mitigated with the implementation of appropriate
countermeasures designed to prevent similar situations in the future, or mitigate these before they generate
significant impacts. Only two incidents (caused by process or system vulnerabilities but which in any case had
a low impact) out of a total of 8,265 were worth reporting.
[38 a,b], [39], [43]: With regard to the material impacts identified for the Group’s own workforce, the following
actions are implemented or planned to mitigate or prevent any significant negative impacts on the Group’s
own workforce:
■
To prevent or mitigate the negative impact "Potential cyber security threats may result in the leakage of
sensitive customer and/or employee data", the enterprise identifies the necessary and appropriate actions
to deal with it as part of the Cyber Security process that ensures the logical security and protection of IT
"
Report on Operations of the
TIM Group
Own workforce
216
and infrastructure resources, ICT assets as well as information. A central role is also played by the Data
Protection Officer (DPO) of TIM and TIM Group companies, with advisory, training, informational, and
oversight functions in compliance with the GDPR. DPO activities include, among others: the management
of issues with the Data Protection Authority; specialized support to Corporate Functions and Group
Companies for the proper processing of personal data; the provision of opinions to assess the risk to the
rights and freedoms of the people concerned; the coordination of obligations relating to the management
of data breaches. TIM assesses the effectiveness of actions through the DPO who informs and advises the
organization and its employees about their data protection obligations under the GDPR and monitors the
organization's compliance with the Regulation and internal data protection policies and procedures. To
manage the impact, TIM employs 82 FTE (full-time equivalent) staff.
■
To prevent or mitigate the negative impact of “insufficient safety measures, lack of training and
inadequate protective equipment, which can cause accidents at work, injuries and damage to the health of
employees and workers in the supply chain”, TIM takes the following actions (see MDR-A 68 a, b, c, d).
Domestic BU
•
Adoption of Safety Management Model according to the UNI ISO 45001 standard for all processes
related to offices and mixed-use buildings.
•
Establishment of the Safety Steering Committee, chaired by the Chief Executive Officer, to ensure
compliance of the Management System with relevant standards, foster integration among business
functions and share improvement measures.
•
Information, awareness and training campaigns for all staff.
•
Implementation of an "identity card" for each employee indicating the risk profile of the work task and
the information needed to perform the task safely. For employees at risk, personal protective
equipment and protocols to be followed are also indicated. information is available on the corporate
intranet.
•
Internal reporting channel for facility managers, related to Health, Safety and Environment, in
implementation of the “Employer’s Delegation of Powers in Occupational Safety and Health and
Environmental Protection” Regulations.
•
Computerized warning system to report hazards.
TIM monitors and evaluates the effectiveness of actions through the Safety Steering Committee, chaired by
the CEO, which: ensures that the Management System complies with relevant standards; promotes integration
between different business functions; shares improvement measures.
To manage the impact TIM allocates significant resources to the following areas: safety training, with:
mandatory courses and periodic updates on emergency procedures, use of Personal Protective Equipment and
risk management; supervision and implementation of security measures with a team of 27 experts; monitoring
and collecting feedback from employees to improve security policies and practices.
TIM S. A.
•
Implementation of the "Safety and health at work" Policy, which includes: prevention of accidents at
work and protection of health; compliance with legal and other requirements of the organization;
continuous improvement of the management system to increase safety and health performance.
•
Occupational safety and health management system with essential processes and initiatives to
maintain a healthy environment for all. The main aspects of this system are: legal compliance and
other requirements; risk management; training, education and outreach; safety, health and emergency
programs; prevention and mitigation of accidents and incidents; and process of continuous
improvement.
■
To prevent or mitigate the following negative impacts:
•
“An inadequate incentive system can have an effect on employee satisfaction”.
•
“The absence of equal pay at executive, managerial, and employee levels may require corrective action
to encourage the attraction of talent”.
The TIM Group adopts compensation policies aimed at remunerating the entire corporate population
appropriately as described in MDR-A 68 a, b, c, section “Adequate wages, also providing for specific indicators
in managerial incentive systems”, which are monitored periodically, to assess the effectiveness of actions.
Management requires dedicated economic budgets to foster fair pay.
■
To prevent or mitigate the negative impact of "Inadequate development, inclusion and work-life balance
initiatives can affect employee satisfaction," TIM has consolidated over the years a very rich welfare plan
aimed at the physical, psychological and social well-being of employees and their families, with a view to
creating a good corporate climate, which also has a positive impact on productivity and attendance.
Domestic BU
TIM's welfare plan in 2024 has seven strands:
•
Personal Services that include: partnership with WellHub for free or discounted services for physical
exercise; psychological service offering 8 free online psychotherapy sessions (used by over 200
colleagues in 2024); mindfulness and autogenic training courses; courses on prevention on certain
categories of diseases and programs on healthy lifestyles.
"
Report on Operations of the
TIM Group
Own workforce
217
•
Family Services including: "TIM Summer", 2-week summer vacation for employees' minor children
(1,194 participants in 2024); "TIM Study", study Assistance and School and Academic Guidance
Programs (485 enrolled in 2024) and Interculture Scholarships (8 scholarships); "TIM Care", caregiver
employee program with guidance and caregiver/baby-sitter search; "TIM Childhood", the service that
provides financial support for expenses incurred for nursery, childcare or baby-sitting services (for the
2023/2024 school year, there were 594 beneficiaries).
•
Merit and Justice includes programs to develop the talent and performance of all employees with
specific focus on bridging the gender gap and specific attention to the younger generation (see section
[37] [MDR-A, 68 a, b, c, e] “Training and development”).
•
Health: discounted health insurance policies, care, check-ups, free vaccination campaigns. TIM My
Health, the free medical care policy for all employees with emergency care for the family, 24/7 medical
support available, prescription issuance and home medication delivery; Free check-up for everyone
over 45 every 2 years (about 5,000 invited in 2024) and Flu Vaccination Campaign: Total refund, with
over 300 participants; Insurance that provides health benefits supplementary to those of the National
Health Service.
•
Economic support: company smartphones and SIMs with mixed use; Flexible and Fringe Benefits
platform, which enables employees to convert their performance bonuses into welfare services, taking
advantage of tax breaks; financial education programs, attended by more than 1,000 people; More
than 300 deals offering favorable conditions for employees.
•
Well Working: tools and solutions to help employees work to the best of their ability, from IT
equipment to mobility tools (such as shuttles or car sharing), to flexibility tools and special permissions
(such as those relating to flexible working).
•
Equal Opportunities: programs and training to promote inclusion of people with disabilities and LGBT+,
to combat gender-based harassment, and to incentivize shared parenting by doubling mandatory
paternity leave. In 2024, awareness programs on harassment and bullying (over 90% participation) and
equal gender opportunity (31% participation) were delivered. The plan includes a dedicated Steering
Committee, a dashboard of KPIs according to PDR:125, a policy on harassment and bullying, and
gender equality awareness activities. Furthermore, the Disability Management plan is based on an
innovative policy for special equipment.
The company monitors and evaluates the effectiveness of all actions taken through the Climate Survey and
the Welfare, Training and Development Survey. To manage the impact TIM provides 9 people and a budget of
about €6,000k.
TIM S.A.
TIM S.A.'s healthcare plan in 2024 includes several initiatives to promote development and inclusion
programs and work-life balance, including:
•
Well+Being program to improve the well-being of employees and their families.
•
Social Service and Personal Support: the objective is to provide support in delicate social situations
that require acceptance and proper guidance. This service is offered to all employees and their
respective legal dependents through social, legal, financial, and psychological guidance, in a
confidential and discreet manner, 24 hours a day, seven days a week, via telephone or e-mail.
•
Reconnecting with TIM: offers a welcome and, if necessary, specific psychosocial support for people
returning from maternity leave, as well as mentoring and professional development courses, and
support and awareness groups for leaders.
■
To prevent or mitigate the negative impact, “A working environment that does not provide employees with
the ‘right to disconnect’ results in increased work stress and burnout, with consequences for employee well-
being” the following actions are planned:
Domestic BU
TIM has included measures to promote well-being and work-life balance in the Agile working agreement.
These measures include "good virtual coexistence" behaviors such as using the "late delivery" option,
scheduling meetings around work hours, and managing your schedule well. Disconnection arrangements
are based on individual responsibility, with no automatic mechanisms, and during authorized breaks (e.g.,
lunch breaks) workers are not required to receive or view company communications. This right is further
referred to in the individual agreements of workers who have voluntarily joined the flexible working
scheme. The company monitors and evaluates the effectiveness through dialogue with the trade union
representatives and any legal proceedings. To manage the impact, the company provides: training for
employees and managers on the importance of the right to disconnect and stress management
techniques; psychological support; for the promotion of company policies that foster respect for the right
to disconnect.
TIM S.A.
•
"Modo Você" campaign, active throughout the year to encourage offline leisure time and improve
employees' health and self-esteem.
•
Specific program for pregnant women: program dedicated to pregnant women and extends up to 12
months of the child's life, offering comprehensive support through telemonitoring and providing
assistance on any topic related to pregnancy, puerperium and the first year of the child's life, always
with a focus on prevention and physical and psychological well-being.
"
Report on Operations of the
TIM Group
Own workforce
218
[38 c, d], [43]: In relation to the positive impact of “a flexible organizational environment that promotes the well-
being of employees and their families, which can generate benefits in terms of work-life balance”, in the Domestic
Area, TIM implements a variety of measures that help employees to better manage family and personal
responsibilities, including:
•
Agile work, according to current agreements and with specific arrangements for employees with
special conditions;
•
leaves and permits, according to different personal, family and study needs;
•
additional tools for flexibility in the performance of work such as flexible entry for normal staff and
management of delays for shift workers.
To manage the impact, TIM has a team dedicated to the implementation and monitoring of labor policies;
training programs; Develops and manages the flexible work platform.
■
In relation to the positive impact "Digital Transformation Training and Reskilling Programs Generate New
Skills to Support the Jobs of the Future," in 2024 TIM offered training and reskilling courses by delivering
280,000 hours of digital transformation training to a cluster of 14,400 employees of major companies in
Domestic perimeter20. The effectiveness of the training activity is measured through a post-course
questionnaire in order to verify content learning. These training programs engaged a team of 11 people,
and involved a total expenditure of €1,300k.
■
In relation to the positive impact “Employee engagement leads to growth in leadership skills and
professional development, improving job satisfaction”, in the Domestic area, TIM has implemented several
actions, described in paragraph 38 a, the effectiveness of which it monitors and evaluates both through the
climate survey, which explores various aspects of the Employee Journey, including work-life balance issues,
and through a specific survey of welfare, training and development activities. To manage the impact TIM
employed a team of 9 people and a budget of about €6,000 k.
[40 a]: In relation to the material risks identified for the Group’s own workforce, below are the actions taken or
planned to mitigate or prevent the material effects on the Group’s own workforce.
■
Regarding the risk of "Phenomena of human rights violations in the company and along the supply chain
that may lead to legal liability and consequent reputational damage," the TIM Group implements
monitoring actions so that policies, procedures and regulations, as well as the values of the Code of Ethics
and Conduct, are respected. Reporting systems through the whistleblowing portal and sanctions for
violations are provided. Since 2020, a policy for handling incidents of gender, sexual, and bullying
harassment has been in place, including a dedicated channel in the Whistleblowing portal, a harassment
committee in the Human Resources Department, and support tools for victims such as the psychological
service, legal assistance, and the Person of Trust scheme.
■
Regarding the risk "Unauthorized access to personal data of customers or employees may result in legal
liability, regulatory sanctions, economic-financial and reputational damage," the TIM Group has
implemented security policies and procedures to protect employees' personal data, preventing
unauthorized access and unlawful processing. In the Domestic area, the relevant business departments,
such as the Chief IT Group Office and the Chief Public Affairs, Security and International Business Office,
are responsible for implementing preventive and corrective measures to mitigate cyber threats. The
company has a specific procedure for handling data breaches in accordance with the GDPR. The control
system on privacy compliance includes periodic self-assessments, spot checks, and second-level checks
planned by the Compliance Department in collaboration with the Data Protection Officer (DPO).
■
Regarding the risk “Gender inequalities in terms of pay and positions of responsibility and non-transparent
career paths can have consequences on the attraction and retention of talent”, the TIM Group oversees the
development of career paths through: retention plans aimed at retaining their employees and reducing
turnover; specific tools such as replacement boards, which plan and manage the future of key positions
within the organization.
[40 b]: Related to the relevant opportunities identified for the Group’s own workforce below are the actions
taken or planned to strengthen the effects on the Group’s own workforce.
■
To pursue the opportunity "Flexible and hybrid working models, which can improve employee productivity
and well-being, while reducing operating costs”, in the Domestic area, the Company adopts the flexible
working model to improve employee productivity and well-being while reducing operating costs. This
approach optimizes work organization, improves work-life balance and employee personal satisfaction,
and also helps reduce CO2 emissions.
To pursue the following opportunities:
■
“The enhancement of employer branding along with the provision of professional refresher programs and
talent management strategies can help attract and maintain a highly qualified and diverse workforce”.
■
“The establishment of achievable performance objectives for employees promotes company productivity”.
TIM creates collective and individual pathways to enhance people’s talent and employability. The Human
Resources & Organization Department, in collaboration with each person’s line manager, establishes
growth plans based on assessments to identify areas for improvement. Actions include training, coaching,
mentoring, special projects and networking, in line with the company's medium- and long-term strategic
goals. Incentive systems include challenging and sustainable goals to improve business productivity.
"
Report on Operations of the
TIM Group
Own workforce
219
20 The persons hired belong to the companies TIM S.P.A., Noovle S.p.A. TI Sparkle S.p.A. Olivetti S.p.A, Telecontact Center S.p.A, Telsy S.p.A., TI Trust
Technologies S.R.L., TIM RETAIL, TI San Marino, TIM Sparkle Estero
[41]: TIM ensures that its practices do not cause or contribute to causing significant negative impacts on its
workforce, engaging in constant dialogue through corporate climate analyses, monitoring of voluntary
participation in flexible working, the presence during delivery of training of modules dedicated to health and
safety, as well surveys to glean feedback regarding these.
The Company has not identified any negative impacts on its own workforce deriving from the transition to a
greener and more climate-neutral economy.
Metrics and targets
Disclosure Requirement S1-5 - Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks and opportunities
[46], [MDR-T, 80 a, b, c, d, e, f, g, h,i]: TIM, in its new Plan 2025-27, has identified the following Group targets:
1.
Leadership position: % women 35% by 2027
2.
Hiring: % women 50% by 2027
The "Women in Leadership Position" target is given by the ratio of the total number of women in leadership
positions to the total number of leadership positions in the Company and formalized by the Human Resources
& Organization functions of the Group Companies. The target includes positions held by executive and non-
executive officers (managers and directors).
The "Hiring" target is given by the ratio of total female hires to total hires in the Company. Recruitment refers
to both permanent and temporary staff.
Through these long-term targets, the progress of which is monitored periodically, the Group confirmed its
commitment to creating a work environment that values skills and merit, ensuring fairness and integrity as
fundamental principles for growth.
Targets are expressed as relative objectives with respect to an initial reference point, represented by the base
year 2024; they concern the entire TIM Group (for details on the reporting scope, please refer to the BP-1
Disclosure Requirement) and include only own activities.
Intermediate targets are provided for both targets. Specifically, the following values are provided for target 1):
34.5% in 2025; 35% in 2026. Target 2) provides the following values: 49% in 2025; 49.5% in 2026.
The defined targets are consistent with national, European and international sustainable development goals,
embodying UN SDG Goal 5, which promotes gender equality and empowerment of all women as a basic
human right. Targets are not based on firm scientific data.
In defining the Group's target, own workers were involved through the double materiality process, which
identified material impacts, risks and opportunities and helped to outline the plan targets.
The methodology adopted to define target 1) has not changed from the previous year, but the redefinition of
the organizational scope following the spin-off operation makes it impossible to compare the data shown in
sustainability statements prior to 2024. Instead, target 2) was introduced with the new Plan 2025-2027.
[46], [MDR-T, 80 j]: In 2023, TIM formed the Gender Equality Steering Committee to adopt and implement
gender equality and monitor the progress of ESG Plan targets. TIM has also obtained Gender Equality
Certification (UNI/PdR 125:2022) of the organization's compliance with the gender equality management
system. Progress is in line with what was initially planned, and the Company is adopting behaviors and actions
that will support the achievement of the target.
[MDR-T, 81 b i, ii]: In addition to the targets set in the business plan, the TIM Group, in order to monitor the
effectiveness of policies and actions related to material impacts, risks and opportunities on its own workforce,
adopts monitoring processes in accordance with regulations and in line with best practices, based on
performance measurement systems. Specifically, the Company:
■
with reference to health and safety aspects, monitors progress regarding the number of injuries;
■
with reference to aspects concerning the adequacy of wages, the company monitors whether the salary
received by all employees is in line with applicable reference parameters;
■
with reference to diversity aspects, monitors the gender distribution by occupational and age groups within
the corporate population;
■
with reference to aspects related to the work-life balance, monitors the percentage of employees entitled
to take leave for family reasons and those who have subsequently taken it;
■
with reference to aspects related to training and skill development, monitors the percentage of employees
who have participated in regular performance and career development reviews and the average number of
hours of training given to its employees;
■
with reference to aspects related to equal pay, monitors progress on the gender pay gap.
"
Report on Operations of the
TIM Group
Own workforce
220
[47 a, b, c]: The ESG objectives present in the corporate strategic plan are defined through the involvement of
relevant functions. Specifically, for the two gender equality targets, the Corporate Communication &
Sustainability Department worked jointly with the Human Resources & Organization Department to present
them to the CEO.
Targets are monitored periodically, including through the adoption of a digital platform that tracks all ESG
data.
Thanks to the monitoring activities and numerous initiatives implemented by the company, a continual
improvement in performance can be noted, for the benefit of employees.
Disclosure Requirement S1-6 - Characteristics of the undertaking’s employees
[50 a] Employees by gender - TIM Group
2024
UOM
Women
Men
Other
Not
reported
Total
Total employees - at the end of the
period (head count)
n
13,181
13,643
—
—
26,824
Employee breakdown by gender - at the
end of the period
%
49.14
50.86
—
—
100.00
Total employees - period average (head
count)
n
13,280
13,797
—
—
27,077
Employee breakdown by gender - period
average
%
49.04
50.96
—
—
100.00
[50 a] Employees by country
Total employees at the end of the period
Total employees period average
Italy
17,458
17,683
Brazil
9,123
9,152
[MDR-M, 77 a]: The view of employees by country takes into account only those countries where Group
companies have 50 or more employees and account for at least 10% of the Group's total number of
employees. Included in “Italy” are: TIM S.p.A., TIM Sparkle Italia, Noovle S.p.A., Olivetti S.p.A., Telecontact
Center S.p.A, Telsy S.p.A., TIM Retail S.r.l, TI Trust Technologies, TS Way, QTI S.r.l., Mindicity. In “Brazil” only TIM
S.A. is considered.
[50 b] Employees by type of contract and gender - end of period - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
13,181
13,643
—
—
26,824
Permanent employees
n
13,090
13,533
—
—
26,623
Fixed-term employees
n
91
110
—
—
201
Non-guaranteed hours employees
n
0
0
—
—
—
[50 b] Employees by type of contract and gender - period average - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
13,280
13,797
—
—
27,077
Permanent employees
n
13,177
13,721
—
—
26,899
Fixed-term employees
n
102
76
—
—
178
Non-guaranteed hours employees
n
0
0
—
—
—
"
Report on Operations of the
TIM Group
Own workforce
221
[50 c] Employee turnover - TIM Group
2024
UOM
Women
Men
Other
Not
reported
Total
Total employees
n
13,181
13,643
—
—
26,824
Employees who have left the company
n
1,357
1,582
—
—
2,939
Employee turnover rate
%
10.30
11.60
—
—
10.96
[MDR-M, 77 a]: The turnover rate is calculated as the ratio of the number of employees terminated during the
reporting year to the total number of employees at the end of the reporting period. Employees who have
terminated employment due to retirement, incentive termination, spontaneous resignation, layoff, and death
in service are considered.
[50 d i, ii], [MDR-M, 77 a]: Data on employee stocks for TIM S.p.A., Telsy, Telecontact, TI Sparkle, TI Trust
Technologies, Olivetti, and Noovle were extracted from the Group's IT systems, while for other Group
companies they were provided directly.
Data are expressed in whole heads, do not consider administered employees, and are extracted at the end of
the period (2024).
From the company's systems it is possible to directly calculate the average consistencies of permanent and
fixed-term employees, as well as the average male/female consistencies at the total level. However, the male/
female mix by contract type is not available. Therefore, to calculate the average male/female size by contract
type, the male/female proportion of the total was applied to the average fixed-term and permanent size.
[50 e]: Changes in the average number of employees are affected by terminations and hires that occurred
during the year. Terminations are mainly linked to spontaneous resignations and to resignations with financial
bonuses. The impact of temporary contracts is minimal in the TIM Group and is mainly associated with the
management of business volumes regarding TIM Retail stores.
[50 f]: The figure on the number of employees is also shown in Consolidated Financial Statements in the
"Detailed Tables - Consolidated Data" section of the report on operations. The figures differs by 63 in the
consistency of the head-counts at the end of the period because the number administered is also counted in
the financial statement.
For information on NetCo, please refer to the section “Information on NetCo’s Performance”, Disclosure
Requirement S1-6 “Characteristics of Company Employees”.
Disclosure Requirement S1-8 Collective bargaining coverage and social dialogue
[60 a] Employees covered by collective agreements - TIM Group
UOM
2024
Total employees
n
26,824
Employees covered by collective bargaining agreements21
n
26,824
%
100.00
[MDR-M, 77 a], [60 b]: Within the European Economic Area (EEA), the Group applies specific types of National
Collective Bargaining Agreements (CCNL) based on the professional category:
Executive employees: this category is covered by two types of contracts that concern 100% of the executives
of the Group's Italian companies.
The same CCNL is applied to Executive personnel In each company, as indicated below:
■
National Collective Bargaining Agreement for Executives of Companies Producing Goods and Services
(CCNL Industrial Executives), applied to 272 people out of the total number of companies in the perimeter
■
National Collective Bargaining Agreement for Executives of sector tertiary, distribution and service
companies, applied to 2 people in total
White-collar and middle manager employees: these categories are covered by two types of contracts that
concern 100% of the personnel of the Group's Italian companies.
The same CCNL is applied to white collars and middle managers in each company, as indicated below:
■
National Collective Bargaining Agreement for personnel employed by companies operating
Telecommunication Services (CCNL TLC), which covers 16,089 people in total, including White collars and
Middle Managers
Report on Operations of the
TIM Group
Own workforce
222
21 All TIM Group employees are covered by specific contractual agreements, depending on the legislation in each country in which it operates.
■
National Collective Bargaining Agreement for employees of Tertiary Sector, Distribution and Service
companies, which covers 1,095 people in total between White Collars and Middle Managers
[60 c]: The percentage of own employees covered by collective agreements, in Group companies operating
outside the EEA, is 100%.
[63 a] Employees covered by employee representatives - TIM companies in EEA countries.
UOM
2024
Total employees
n
17,458
Employees covered by employee representatives
n
17,115
%
98.04
[MDR-M, 77 a]: The total number of employees in the table refers to companies operating in the countries of
the European Economic Area with at least 50 employees and representing at least 10% of the total number of
employees of the Group. The companies considered are: TIM S.p.A., TIM Sparkle Italia, Noovle S.p.A., Olivetti
S.p.A., Telecontact Center S.p.A, Telsy S.p.A., TIM Retail S.r.l, TI Trust Technologies, TS Way, QTI S.r.l., Mindicity.
[63 b]: The Group’s companies operating in the European Economic Area have not entered into any agreement
with their employees for representation by a European Works Council (CAE), a works council of a European
Company (SE) or a works council of a European Cooperative Company (SCE).
[RA 70] Coverage of collective bargaining and social dialogue
Collective bargaining coverage
Social dialogue
Coverage rate
Employees - EEA (for countries with > 50
empl. representing > 10% total employees)
Employees - non-EEA
(estimate for regions with
>50 empl. representing
>10% total employees)
Workplace representation
(only EEA) for countries
with > 50 empl.
representing > 10% total
employees)
0-19%
—
—
—
20-39%
—
—
—
40-59%
—
—
—
60-79%
—
—
—
80-100%
Italy
Brazil
Italy
Disclosure requirement S1-9 - Diversity metrics
[66 a] Distribution of employees by gender at Top management level - TIM Group.
2024
UO
M
Women
Men
Other
Not reported
Total
Total employees at Top management
level
n
3
14
—
—
17
Gender distribution at senior
management level
%
17.65
82.35
—
—
100.00
[MDR-M, 77 a]: The TIM group defines “Top Management” as people who play a key role in the development of
business strategies and who report directly to the Management and Control bodies or to the Group’s Chief
Executive Officer. Top management is shown on the first page of the company's organizational chart, called
"Organizational Macro Chart."
Report on Operations of the
TIM Group
Own workforce
223
CHIEF EXECUTIVE OFFICER
PIETRO LABRIOLA
CORPORATE COMMUNICATION &
SUSTAINABILITY
MARIA ENRICA DANESE
EUGENIO SANTAGATA
CHIEF PUBLIC AFFAIRS,
SECURITY & INTERNATIONAL
BUSINESS OFFICE
CHAIRWOMAN
ALBERTA FIGARI
ADRIAN CALAZA
CHIEF FINANCIAL OFFICE
LEGAL, REGULATORY & TAX
AGOSTINO NUZZOLO
CLAUDIO GIOVANNI EZIO ONGARO
CHIEF STRATEGY
BUSINESS DEVELOPMENT &
WHOLEBUY OFFICE
CHIEF HUMAN RESOURCES &
ORGANIZATION OFFICE
PAOLO CHIRIOTTI
CHIEF CONSUMER,
SMALL & MEDIUM AND MOBILE
WHOLESALE MARKET OFFICE
ANDREA ROSSINI
PRESIDÊNCIA
TIM S.A.
ALBERTO MARIO GRISELLI
COMPLIANCE
ROCCO RAMONDINO
AUDIT
MASSIMILIANO TURCONI
ROBERTO MAZZILLI
CHIEF IT GROUP OFFICE
PROCUREMENT & LOGISTICS
GIAMPAOLO LEONE
ALESSANDRA MICHELINI
TRANSFORMATION
CHIEF TECHNOLOGY OFFICE
a. i. PIETRO LABRIOLA
ELIO SCHIAVO
CHIEF ENTERPRISE
AND INNOVATIVE
SOLUTIONS OFFICE
BOARDS OF
DIRECTORS
Macro organizational structure as of 12/31/2024
Telsy
Fondazione TIM
TIM Enterprise
TIM
TIM S.A.
Noovle
Olivetti
TIM San Marino
Sparkle
[66 b] Employee distribution by age group - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
13,181
13,643
—
—
26,824
Employees under 30 years old
n
995
1,012
—
—
2,007
%
7.55
7.42
—
—
7.48
Employees between the ages of 30 and 50
n
7,173
6,135
—
—
13,308
%
54.42
44.97
—
—
49.61
Employees over the age of 50
n
5,013
6,496
—
—
11,509
%
38.03
47.61
—
—
42.91
[MDR-M, 77 a]: In this table, the percentage of employees by age group is calculated by relating the number of
employees by age group and gender to the total number of employees by gender.
[66 b] Percentage distribution of employees by age group - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Percentage of employees under 30
%
3.71
3.77
—
—
7.48
Percentage of employees between 30 and
50 years old
%
26.74
22.87
—
—
49.61
g
p
y
y
old
%
18.69
24.22
—
—
42.91
[MDR-M, 77 a]: This table shows the percentage of employees by age group and gender, out of the total
number of employees.
For information on NetCo, please refer to the section “Information on NetCo’s Performance”, Disclosure
Requirement S1-9 “Diversity Metrics ”.
Disclosure Requirement S1-10 - Adequate Wages.
[69]: All employees in the TIM Group receive an appropriate salary in line with the relevant national collective
bargaining agreements, (see what is stated in Disclosure Requirement S1-8 paragraph 60 a).
[70] Employees who do not receive wages in line with applicable benchmarks.
%
Italy
0.00
Brazil
0.00
[MDR-M, 77 a]: The country perimeter takes into account only those countries where the company has 50 or
more employees representing at least 10% of the Group’s total number of employees. Included in “Italy” are:
TIM S.p.A., TIM Sparkle Italia, Noovle S.p.A., Olivetti S.p.A., Telecontact Center S.p.A, Telsy S.p.A., TIM Retail S.r.l,
TI Trust Technologies, TS Way, QTI S.r.l., Mindicity. In “Brazil” only TIM S.A. is considered.
Disclosure requirement S1-12 - Persons with disabilities.
[79] Employees with disabilities - TIM Group
UOM
2024
Total employees
n
26,824
Employees with disabilities
n
995
%
3.71
[MDR-M, 77 a]: The TIM Group, in classifying employees having “disabilities”, aligns itself with the laws of the
countries in which it operates.
For Italian companies, employees that come under the categories described in Article 1 of Law 68 of March 12,
1999 ‘Rules for the right to work of people with disabilities’ are considered as having ‘disabilities’.
More generally, the “condition of disability” as per the provisions of Legislative Decree 62/2024 is defined as “a
lasting physical, mental, intellectual, neurodevelopmental or sensory impairment that, in interaction with
barriers of a different nature, may hinder full and effective participation in different life contexts on the basis of
equality with others”.
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In Brazil, federal law defines a person with a disability if he or she has a permanent and irreversible impairment
of a physical, or hearing, or visual or intellectual/mental, or multiple nature, or an infirmity recognized by the
health welfare service. When it interacts with one or more barriers, this deficit hinders its full and effective
participation in society on a par with others. The process of classifying a person as a "PCD" (Person with
Disability) also involves a detailed medical evaluation. First, the health department reviews the person's
International Classification of Diseases (CID), a system used to classify diseases and health conditions. The
assessment then confirms whether the individual has a disability that falls within the casuistry of the above
law, ensuring the permanence and irreversibility of the deficit.
Disclosure requirement S1-13 - Training and skill development metrics
[83 a] Training and skills development by gender - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Employees that participated in regular
performance and career development
reviews
n
10,434
10,264
—
—
20,698
%
38.90
38.26
—
—
77.16
[MDR-M, 77 a]: The percentage of employees who have participated in periodic performance and career
development reviews is given by the ratio of the number of employees who have participated in such reviews
to the total number of employees in the Group, by gender and at total, set forth in Disclosure Requirement
S1-6 "Characteristics of the undertaking’s employees."
[83 b] Hours of training by gender - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Total training hours
h
482,628.26
396,292.78
—
—
878,921.04
Average hours of training per employee
h
36.62
29.05
—
—
32.77
[MDR-M, 77 a]: Average hours of training are the result of the ratio of the total number of training hours
offered and completed by employees by gender in the reporting year to the total number of Group employees
by gender as of 12/31/2024, as per Disclosure Requirement S1-6 "Characteristics of the undertaking’s
employees."
Disclosure Requirement S1-14 - Health and Safety Metrics
[88 a] Workers covered by the health and safety management system - TIM Group
2024
UOM
Employees
Non-employees
Total
Own workers covered by the health and
safety management system
n
26,634
—
26,634
%
99.29
—
99.29
[MDR-M, 77 a]: The percentage of workers covered by the health and safety management system refers to the
total own workforce.
.[88 b] Fatalities from work-related injuries and illnesses - TIM Group
2024
UOM
Employees
Non-employees
Other workers
Total
Fatalities from work-related injuries
and illnesses
n
0
—
—
0
It should be noted that in Brazil, in 2024, there was a death of a worker in the TIM S.A. value chain in the course
of carrying out some technical activities pertaining to company assets.
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[88 c] Recordable Workplace Injuries - TIM Group
2024
UOM
Employees
Non-employees
Total
Recordable work-related accidents
n
25
—
25
Rate of recordable work-related accidents
%
0.6
—
0.6
[MDR-M, 77 a]: The number of recordable occupational injuries corresponds to the recorded injuries that
resulted in at least one day off work. The figure does not include injuries caused by passive accidents.
The work injury rate is calculated as the ratio of the number of recorded work injuries to the total hours worked
in the year (given by the sum of hours worked, overtime hours, training hours and travel hours), which is
39,850,276, multiplied by 1,000,000.
[88 d, e] Cases and days lost due to occupational injuries, accidents and deaths - TIM Group
UOM
2024
Recordable cases of work-related illness
n
0
Work days lost due to work-related injuries and fatalities due to work-
related injuries and illnesses and fatalities due to illnesses
n
367
[MDR-M, 77 a]: Days lost due to injury do not consider days not worked for commuting accidents, unless
transportation was arranged by the Company, or for injuries caused by passive accidents. In the case of an
injury with absences spanning two reporting years, the injury is recorded in the year in which it occurs, while
the days of absence are counted in the year in which they are actually used.
For information on NetCo, please refer to the section “Information on NetCo’s Performance”, Disclosure
Requirement S1-14 “Health and Safety Metrics”.
Disclosure requirement S1-15 - Work-life balance metrics
[93 a] Employees entitled to family-related leave - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
13,181
13,643
—
—
26,824
Employees entitled to take family-related
leave
n
13,181
13,643
—
—
26,824
%
100.00
100.00
—
—
100.00
[93 b] Employees who have taken family-related leave - TIM Group
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
13,181
13,643
—
—
26,824
Employees who have taken family leave
n
2,020
1,083
—
—
3,103
%
15.33
7.94
—
—
11.56
[MDR-M, 77 a]: The data in the table refer to the number of employees who took family-related leave at least
once during the reporting year.
[94]: All Group employees are entitled to family leave as provided for in the applicable collective bargaining
agreements (for collective bargaining coverage see ESRS Disclosure Requirement S1-8 "Collective Bargaining
Coverage and Social Dialogue").
Disclosure requirement S1-16 - Remuneration metrics (pay gap and total
remuneration)
[97 a], [MDR-M, 77 a]: The TIM Group has a gender pay gap between men and women of 24.41%, of which
19.8% at the Domestic level.
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These figures are influenced by the strong concentration of women in the Customer Care sector (about 80% of
Caring operators are women), where there is the highest incidence of the lowest job classifications than in
other functions of the Group, in view of the tasks performed.
TIM S.A takes into account gender representation at the professional and geographical levels in its reports.
The gender pay gap, net of the Customer Care sector is 18.6% at the Group level, while at the Domestic level it
drops to 13.6%.
TIM S.A, moreover, in its report measures a Gender Pay Gap of 1.8 percent, which weights in Brazil the female
representation on professional profiles with very low pay and the wage disparity that is recorded at the level of
states/regions of the federation.
The calculation of the pay gap is in line with the methodology stipulated in the CSRD regulations.
[97 b, c]: At the Group level, the ratio of the annual total remuneration of the highest paid person to the
median annual total remuneration of all employees is 92.86.
In the calculation of the ratio, fixed and variable remuneration are considered (the latter at the target value, as
official company kpi summaries are not yet available), and non-monetary benefits (mixed-use car, life
insurance, meal vouchers), which represent an absolutely minor part of remuneration, in the order of a few
percentage points, are not considered. Variable compensation concerns the entire company population in the
form of managerial (MBO, Management by Objectives), commercial (PIV, Sales Incentive Plans) and collective
(PdR, Results Bonus) incentives, as well as specific collective incentive tools (Canvass) for specific professional
positions, usually in contact with Customers. The calculation of the median value of remuneration at the Group
level was approximated through a calculation algorithm that considers the weighted average over the number
of employees of the median values of each Group Company.
Disclosure Requirement S1-17 - Incidents, complaints and severe human rights
impacts
[MDR-M, 77 a], [103 a, b, c, d]: During 2024, the TIM Group through the Whistleblowing channel received 43
total reports regarding Human Rights, of which 30 were related to discrimination/harassment aspects and 13
related to other issues.
With respect to the 30 reports of discrimination/harassment incidents, 3 were substantiated, 1 partially
substantiated, 4 unfounded, 6 inconclusive, 7 inadmissible, 6 closed as unassessable, and 3 with further
investigation in progress. Corrective actions put in place by the company resulted in 7 layoffs, one disciplinary
action and 3 pieces of feedback.
Of the 13 reports attributable to other issues, 9 were found to be unsubstantiated, 2 inconclusive, and 2 with
ongoing investigations.
The TIM Group did not pay fines or penalties for compensation for damages resulting from complaints and
incidents related to episodes of harassment and human rights’ violations.
It is specified that in order to track reports of discrimination cases, the TIM Group refers to the definition given
in the ESRS.
[104 a, b]: During 2024, the TIM Group did not record any reports regarding serious human rights violations
related to its workforce, which can be traced to the cases listed in the ESRS.
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Workers in the value chain [ESRS S2]
S2-Strategy
Disclosure Requirement SBM-2 - Interests and views of stakeholders
[S2 SBM-2, 9]: In defining its business strategy, workers in the value chain could be materially impacted by TIM
regarding policies and certifications to be adopted and obtained. To avoid this, the Group interfaces with
workers in the value chain, including through the Open-es platform, to ensure that its business model is in line
with the needs of relevant stakeholders.
Disclosure Requirement SBM-3 - Material impacts, risks and opportunities and their
interaction with strategy and business model
[S2 SBM-3, 10 a, b], [S2 SBM-3, 11]: In the double materiality analysis, the TIM Group considered all potentially
impacted workers, both internal and in the value chain. Impacts arise from the business model and corporate
strategy. TIM uses a complex supply chain that includes network operators, ICT service providers,
manufacturing companies, and outsourcing partners. This pattern affects working conditions, safety, and
human rights, especially in countries at risk of fundamental rights violations.
The assessment of social impacts in the value chain guides TIM's strategic decisions toward a sustainable
business model, while also managing reputational risks arising from inadequate management of working
conditions in suppliers.
[S2 SBM-3, 11 a, i, ii, iii]: Within the value chain, the TIM Group considers as relevant in terms of impact mainly
the workers upstream of the supply chain, that is the employees of the suppliers that offer the TIM Group
products and services, such as network services (Fibercop), components for telecommunications and devices,
or programming services, as material in terms of impact. Within the offices of the TIM Group, it is expected
that there will be workers who are not part of their own workforce, such as workers in technical assistance
services companies, and providers of professional services (such as, for example, consulting firms).
With regard to workers downstream of the value chain, the TIM Group mainly considers the workers of the
companies that offer TIM logistics services, distributors and dealers, as well as the workers of companies that
build and manage plants for customers.
There are workers who carry out operations as part of joint ventures with the Group. For example, in Italy, TIM
is involved in a joint venture with TimFin S.p.A. and with the National Strategic Hub.
[S2 SBM-3, 11 a v], [S2 SBM-3, 11 c, d], [S2 SBM-3, 12]: The double materiality analysis highlighted a single
negative impact in relation to workers in the value chain:
■
"Insufficient safety measures, lack of training and inadequate protective equipment can cause accidents at
work, injuries and damage to the health of employees and workers in the supply chain".
The negative impact is generalized in nature, not being related to a specific incident encountered.
That said, generally speaking, among the value chain workers most likely to be negatively impacted may be
women, young people, people with disabilities and supplier workers in at-risk geographic areas (Asia, Central
and South America, North Africa and Eastern Europe).
Finally, the double materiality analysis showed no material positive impacts in relation to workers in the value
chain.
[S2 SBM-3, 11 b, e], [S2 SBM-3, 13]: The double materiality analysis revealed the following risk:
■
"Phenomena of violation of human rights in the company and along the supply chain may result in legal
liability and consequent reputational damage";
The risk may involve specific groups of workers who work for suppliers operating in ESG-risk geographic areas
such as Asia, Central and South America, North Africa, and Eastern Europe. In particular, the risk in these areas
could involve child labor, forced labor or bonded labor.
For this reason, in so-called “ESG risk” areas, these suppliers are administered an ESG qualification
questionnaire at the time of registration to check the company's compliance with certain standards, including
respect for human rights.
Finally, the double materiality analysis showed no opportunities in relation to workers in the value chain.
S2-Impact, risk and opportunity management
Disclosure requirement S2-1 - Policies related to value chain workers
[16], [MDR-P, 65 a]: The aspects of the IROs that emerged as material from the double materiality assessment
of the topic “Workers in the value chain” are covered in the “Human Rights Policy”, in the “Product and Service
Procurement Policy” and in the “TIM Health and Safety Policy”. All policies link to the following material impact
and risk:
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Negative impact
■
"Insufficient safety measures, lack of training and inadequate protective equipment can cause accidents at
work, injuries and damage to the health of employees and workers in the supply chain"
Risk
■
"Human rights violations within the company and along the supply chain may result in legal liability and
consequent reputational damage"
The “Human Rights Policy”aims to make respect for Human Rights an essential requirement in carrying out the
Group’s activities and also concerns third parties who enter into relationships with the company.
The Policy identifies Human Rights that may be influenced, directly or indirectly, by Group activities, including
fundamental Human Rights (e.g., working hours, fair wages, minimum working age, workplace conditions)
rights concerning health and safety, rights to protect diversity and discrimination.
In relation to the IROs material to the topic “Workers in the Value Chain”, the protection of rights also concerns
the human resources of Suppliers.
The policy also sets out the processes through which the company undertakes to respect human rights.
Specifically, all activities within the scope of the policy are subject to periodic internal due diligence inspired by
the Guiding Principles of the United Nations Global Compact, which aims to:
■
identify and map the human rights risks arising from the Group's operational activities;
■
confirm that each topic is governed by a specific internal regulatory framework (for example, policies,
procedures), is monitored and tracked (where possible through appropriate indicators) and has had the
related responsibilities assigned to it;
■
establish a gradual improvement strategy which, beginning with simple compliance with local laws, steers
human rights policies and processes towards engagement with the relevant stakeholders, through
appropriate initiatives designed to engage them.
The “Product and Service Procurement Policy” defines the objectives and general principles of the TIM
Group’s purchasing process and the related regulatory, contractual and control guidelines, as well as the
procurement commitments in terms of environmental and social responsibility.
With reference to the IROs material for “Workers in the value chain”, the policy ensures compliance,
throughout the supply chain, with the Group’s ethical and sustainability values at all times, requiring a similar
formal commitment from suppliers and promoting, through the latter (and any subcontractors), respect for
lawfulness, human rights and the rights of the person, environmental sustainability, health and safety at work
and the provisions of TIM’s Anti-Corruption Management System.
To this end, supply contracts provide for TIM and TIM Group Companies to have the possibility to carry out
controls and audits on suppliers and their performance, in compliance with the current regulatory and
procedural framework.
The “Health and Safety Policy”, drafted in accordance with UNI EN ISO 45001 provisions, aims to:
■
foster the reduction of accidents, occupational diseases and other accidental events, through the
implementation of appropriate prevention and control measures;
■
ensure full compliance with legal requirements and mandatory safety requirements on the design,
construction and management of buildings;
■
guarantee the best living conditions for working environments and services for people;
■
assess risks to the safety and health of workers, with a view to gradually eliminating these or reducing
them to a minimum through the adoption of best practices.
In relation to the IROs material for the topic “Workers in the value chain”, the document also sets out TIM’s
commitment to promoting a careful selection and management of contractors and suppliers, with the support
of other responsible business functions, also concerning the adoption of best health and safety standards,
promoting engagement with contractors and suppliers for the exchange and dissemination of good practices.
To contextualize the Group’s policies in the Brazilian business dimension, TIM S.A. has also defined three
additional policies related to the topic “Workers in the value chain” that concern:
■
“Supplier Relations”, in which it requires from its suppliers, including subcontractors, and encourages
respect for the principles relating to child and forced labor, health and safety, freedom of association,
discrimination and harassment, disciplinary procedures, enhancement of diversity, working hours and
salaries.
■
The “Social Responsibility Policy”, in which TIM S.A. confirms its commitments to national and
international standards and principles to defend human rights, decent work practices, protect the
environment and combat corruption.
■
The "Health and Safety in the Workplace" Policy applied to all TIM Group facilities in Brazil, including the
TIM Institute, which establishes guidelines and principles to be applied in all activities, with the aim of
promoting the continuous improvement of working conditions. The policy includes key commitments also
aimed at workers of service providers in relation; to the prevention of accidents at work and protection of
health; to compliance with legal and other requirements of the organization; to continuous improvement
of the management system, with the aim of increasing safety and health performance.
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[16], [MDR-P, 65 b]: The “Human Rights Policy” and the “TIM Health and Safety Policy” apply to all people in
the TIM Group, extending the commitment to the TIM Group’s activities and related value chain.
The “Product and Service Procurement” Policy is valid for all Group Companies and is directly applicable to
purchases made by the Procurement Department and functions who make purchases.
[16], [MDR-P, 65 c]: The implementation of the Human Rights Policy is ensured by the first levels of the main
relevant business functions, including: the Sustainability Function, which is responsible for updating the
contents of the Policy; the Human Resources Department, responsible for complying with the Policy with
respect to TIM’s people, the Procurement Department, responsible for complying with the policy in relation to
the involvement of the Group’s suppliers; the Compliance department oversees the risk of non-compliance
with applicable regulations.
The implementation of the ‘Product and Service Procurement Policy’ is guaranteed by the Procurement
Function in all its branches and responsibilities; by the Chief Financial Office function that ensures, at the Group
level, the oversight of financial, administrative and economic-management processes; by the Legal and Tax
function that ensures, at the Group level, legal protection, corporate compliance and the application of the
governance model, as well as the definition of tax policies.
The adoption of the ‘TIM Health and Safety Policy’ is guaranteed by the Health, Safety & Environment
department, which ensures the monitoring of issues relating to prevention, safety and health for workers, and
by the Real Estate department, which is responsible for implementing compulsory occupational health and
safety measures in company buildings.
[16], [MDR-P, 65 d]: The main international references guiding the drafting of the Human Rights Policy are:
•
UN Universal Declaration of Human Rights, 1948
•
UN International Covenant on Civil and Political Rights, 1976
•
UN International Covenant on Economic, Social and Cultural Rights, 1976
•
UN Human Rights Council, Guiding Principles on Business and Human Rights: Implementing the United
Nations “Protect, Respect and Remedy” Framework, A/HRC/17/31, 2011
•
International Labor Organization, Declaration on Fundamental Principles and Rights at Work, 1998
•
OECD, Guidelines for Multinational Enterprises, 2011
•
For the ‘Product and Service Procurement’ Policy, the external references are:
•
Italian Legislative Decree 231/01 of 8 June 2001 - Regulations governing the administrative
responsibility of legal persons, companies and associations with no legal status. (DC-2018-00498)
•
Italian Legislative Decree 196/2003 - Data Protection Law. Data Protection Law (DC-2018-00069) and
the Regulation (EU) 2016/679 General Data Protection Regulation (so-called. ‘GDPR’), (DC-2018-00235)
•
Presidential Decree 313/2002 Consolidated text of the legislative and regulatory provisions on criminal
records, the register of administrative sanctions imposed due to a crime and related pending charges.
(DC-2018-00559)
•
Italian Legislative Decree 81/2008 - Consolidated Law on the protection of health and safety in the
workplace and subsequent amendments. (DC-2018- 00556)
•
Italian Legislative Decree 152/2006 ‘Consolidated Law on the Environment’, as amended (DC-2018-
00377)
•
Consob Resolution no. 17221 of Mar 12, 2010 - Regulation containing provisions on related party
transactions (DC-2018-00468)
•
Italian Law no. 262 of December 28, 2005 - ‘Provisions for the protection of savings and the regulation
of financial markets’ (DC-2018-00585). With regard to the Product and Service Procurement Policy, TIM
operates within the framework of the Joint Audit Cooperation — JAC initiative (http://jac-
initiative.com) of which the Group is a founding member. (1) JAC is a collective of telecommunications
companies that aim to promote safe and fair working conditions, as well as responsible business, social
and environmental management.
The Health and Safety Policy is inspired by the international standard ISO 45001 on occupational health and
safety management systems.
[16], [MDR-P, 65 e]: Group Policies always consider aspects that have emerged as priorities following
discussions with management and with the company’s main external stakeholders and have a strong
influence on business activities and processes.
[16], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents
available to its stakeholders on its corporate intranet and on the Group’s company website www.gruppotim.it ,
in compliance with “least privilege” and “need to know” principles. Where appropriate, for relations with third
parties, specific contractual clauses will be added relating to the acceptance and/or compliance with some of
the policies, such as the Code of Ethics and Conduct.
Information on TIM S.A.’s policies, on the other hand, can be found on its institutional website https://
ri.tim.com.br/en in the dedicated “Regulations and Policies” section.
[17 a, b]: The TIM Group describes its human rights policy commitments in the Human Rights Policy, also with
reference to workers in the value chain, referring to their fundamental Human Rights such as working hours,
fair salaries, minimum working age, workplace conditions, accessibility to people with disabilities, protecting
maternity, prohibiting harassment, forced/compulsory/bonded labor.
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[18]: In its Policy on human rights, TIM explicitly condemns any form of forced or bonded labor, as well as any
form of exploitation of children and young people, specifying also that people under 18 years of age are not
employed.
[19]: The Human Rights Policy is in line with the principles promoted in the United Nations Global Compact, of
which TIM is a member. Specifically, this Policy is in line with the United Nations guiding principles on business
and human rights, with the ILO declaration on fundamental principles and rights at work and with the OECD
guidelines for multinational enterprises.
Disclosure Requirement S2-2 - Processes for engaging with value chain workers about
impacts
[22 a, b, c, e]: As part of its activities, the TIM Group considers the views of workers in the value chain to guide
its decisions and activities. The Company mainly indirectly involves such supply chain workers through
consultation, dialogue, information and collaboration activities throughout the year. Specifically, involvement
occurs:
■
in the supplier qualification stage, with the collection of information and data and the request to sign the
Code of Ethics and Conduct and the request for 45001 (occupational health and safety management
system) certification or equivalent;
■
during the double materiality analysis to define the impacts, risks and opportunities material to the
company. In 2024, TIM involved 1,282 suppliers in the stakeholder engagement process;
■
on an ongoing basis throughout the year by offering training and participation in ESG events through the
Open-es platform, an open cross-industry ecosystem that engages companies in a common path of
growth on sustainability performance.
TIM Group’s policies, commitments, and strategies on stakeholder engagement, including value chain workers,
are overseen at the executive level by the Corporate Communication & Sustainability Department and the
Procurement & Logistics Department with regard to the path of improving the ESG performance of value
chain workers through participation in Open-es.
The TIM Group assesses the effectiveness of worker involvement in the value chain by ensuring the
participation of its supply chain in the double relevance analysis. In addition, the company monitors the
registration of its suppliers on the Open-es platform, on which there is an increase of more than 5% year-on-
year. Registered suppliers are involved in training and engagement activities for the adoption of tools to
improve ESG performance.
[22 d]: The TIM Group is committed to upholding Human Rights beyond its own operations, aiming to be a
proactive leader in initiatives and networks regarding Human Rights locally and internationally. the Company
with respect to the value chain of the countries in which it operates, aims to prevent any form of abuse
through:
■
the respect, support and promotion of all internationally recognized Human Rights, even in the absence of
national laws and regulations;
■
the encouragement of partners to become advocates for Human Rights;
■
the provision of whistleblowing mechanisms to report violations.
The Group is a founder and active participant of the local Global Compact networks in Italy and Brazil, and the
Joint Alliance for CSR, the alliance promoted among ICT companies that aims to raise Human Rights standards
within the supply chain.
In Brazil, TIM S.A. supports and encourages its partners to endorse the Universal Declaration of Human Rights
and international conventions on civil, political, economic, social and cultural rights, as well as the policies of
the International Labor Organization (ILO), the United Nations Human Rights Council, the Organization for
Economic Cooperation and Development (OECD) and ISO 26000.
[23]: The TIM Group, in order to better understand the views of its own and value chain workers who may be
vulnerable to impacts or marginalized, is actively involved in cross-company associations aimed at developing
diversity-friendly strategies and best practices
For example, TIM is among the founding members of "Parks - Free and Equal," an association that promotes
Diversity Management as a source of value and competitive advantage, exclusively dedicated to employers
created to help member companies achieve an inclusive culture through training, organizational consulting,
research, events and networking.
TIM also supports "Valore D", an association of companies in Italy that since 2009 has been a pioneer in the
field of gender equity and the culture of inclusion, with a network that includes companies of different sizes
and sectors, committed to creating more inclusive work environments.
Finally, TIM is a Platinum partner of the "4 Weeks for Inclusion" (4W4I) initiative, an alliance of 400 partners
who alternate in a series of webinars and events focused on the enhancement of diversity and inclusion.
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Disclosure Requirement S2-3 - Processes to remediate negative impacts and channels
for value chain workers to raise concerns
[27 a]: TIM Group, where it has caused or contributed to a material adverse impact on workers in the value
chain such as in the case of possible workplace accidents, acts in accordance with the OECD Guidelines for
Multinational Enterprises; with the United Nations Guiding Principles on Business and Human Rights; with the
principles established by the eight core conventions of the International Labor Organization (ILO) on
fundamental principles and rights at work; with the International Bill of Human Rights, including workers'
rights. Through a subsequent direct or indirect discussion with workers in the value chain, it evaluates and
monitors the effectiveness of the implemented remedy.
[27 b, c, d], [28]: In order for workers in the value chain to communicate their concerns or needs directly to the
company and receive assistance on the matter, the TIM Group has equipped itself with the “Whistleblowing”
channel (https://portalesegnalazioni.telecomitalia.it/) that can be accessed from the institutional website of
TIM and Subsidiaries (where activated). The portal, in accordance with the relevant policy, ensures the
confidentiality of the whistleblower’s identity through the use of secure protocols and encryption tools. After
entering information, the Portal provides a Unique Identifier Code, which can then be used to check the
processing status and to send and receive communications (even anonymously). Alternatively, the following
contacts are available:
■
toll-free at 800664411;
■
by standard mail to the Supervisory Body of TIM or the TIM Group company concerned, addressed to the
company's registered office. Anyone who receives a report, in any form (written or oral), must forward it
within 7 days of receipt to the Supervisory Body concerned, including through TIM’s Audit Function,
guaranteeing absolute confidentiality.
TIM Group then monitors reports from the Whistleblowing channel and conducts, periodically monitoring
activities through measurement systems that consider particular performance indicators.
In Brazil, TIM S.A. has its own telephone reporting channel (at 0800 900 8007), operating 24 hours a day, 7 days
a week. Full information is available at the link: www.tim.com.br/sp/canal-de-denuncias. In addition, TIM’s
supply and service contracts include a specific clause in which the “contracting party” (suppliers and business
partners) acknowledges TIM’s Whistleblowing Channel and how it can be accessed, committing to use it if
needed.
In TIM S.A., the Whistleblowing channel is managed by the Audit Department, which reports directly to the
Board of Directors. Complaints are submitted during regular meetings of the Legal Review Committee (CAE)
and the Control and Risk Committee (CCR).
The TIM Group monitors value chain workers' awareness of reporting channels by monitoring views and
consultations. The effectiveness of the channel is also assessed annually through independent evaluations and
monitored with key performance indicators such as the number of complaints received and the percentage of
new suppliers adhering to the Code of Ethics and Conduct. In 2024, 31 reports were received through the
whistleblowing channel and 100% of the newly qualified suppliers in Italy signed the behavioral principles. of
the Group's Code of Ethics and Conduct.
The Whistleblowing process ensures that the identity of the whistleblower remains confidential, to protect the
whistleblower from retaliation, except when there is a law or court decision to the contrary. Suspicion of
retaliation against the whistleblower may also be investigated.
Disclosure requirement S2-4 – Taking action on material impacts on value chain
workers, and approaches to managing material risks and pursuing material
opportunities related to value chain workers, and effectiveness of those actions
[31], [MDR-A, 68 a,b,c], [MDR-A, 69 a, b, c, e], [32 a, b, c, d]: The TIM Group deploys actions and resources
related to workers in the value chain, differentially in the Italian territory and in the Brazilian territory with
respect to the following issues:
1.
Working conditions: health and safety;
2.
Other work-related rights: forced labor, child labor.
All actions are continuous, they are dedicated to workers in the value chain and have the goal of achieving
continuous improvement of processes and the well-being of workers.
1.
Working conditions
The actions described below in terms of health and safety mitigate the following negative impact inferred from
the double materiality analysis “Insufficient safety measures, lack of training and inadequate protective
equipment, which can cause accidents at work, injuries and damage to the health of employees and workers in
the supply chain”.
Actions are implemented periodically and continuously, with the understanding that the Company aims to
minimize risks and ensure a healthy work environment for both employees and external workers. Activities are
inspired by best practices and refer to national and international standards (ISO 45001).
The Group monitors and evaluates the effectiveness of actions taken through constant engagement with its
suppliers, with whom it ensures that prevention and information measures are adopted and observed.
Domestic BU
The Company deploys a series of control measures to eliminate or contain risks in the workplace.
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All suppliers of products and services are registered in an internal register that requires prior qualification and
periodic checks to ensure competence and quality. In thecontractual agreements governing relations with
supplier companies, clauses are then included that make it mandatory to adopt specific workplace safety
protocols.
Health and safety training programs are provided, and the use of advanced protective equipment is required in
the performance of activities. In Italy, there is mandatory training for activities in confined or suspected
polluted environments. Providers must demonstrate that they have acquired the necessary information to
minimize the likelihood of accidents. Although the contracts do not provide specific training hours, sharing of
tools and best practices for network contractors and office maintenance contractors are promoted.
Annually, monitoring campaigns for worker health and safety are carried out, with surveys of noise,
electromagnetic fields, radiation, vibration and microclimate parameters, and the chemical and biological
substances used are also checked. The commitment extends to network and sole proprietorships, which must
comply with occupational medicine regulations.
Finally, periodic inspections of workplaces are conducted to ascertain compliance with applicable regulations.
In 2024, audits were conducted on temporary construction sites with the support of an external certification
company, which will continue in 2025.
TIM S.A.
The company identifies hazards and risks related to activities and products and services, considering the life
cycle, through direct observations, document analysis, occupational health and safety (OSH) inspections and
audits. Activities with potentially hazardous risks are carried out by qualified professionals, and in any case,
according to occupational risk management analyses, no unsanitary conditions were found. Risk management
programs are carried out by health, safety and environmental experts, providing input for control measures
that reduce risks and ensure a healthy work environment.
For non-employee workers, the occupational safety system is directly implemented by supplier companies,
based on the guidelines in the ‘Regulatory Standard NR-05’.
2.
Other work-related rights: forced labor, child labor
Domestic BU
The company puts in place controls and/or audits to ensure that the human rights of workers in the value
chain are respected, in particular that people under 18 years of age are not employed, unless different legal
limits are set in individual countries and in any case in compliance with relevant European policies. In any case,
minors under the age of 18 should not be employed in hazardous work or during night hours.
Moreover, at companies in Italy, no activity is at risk of episodes of forced labor. TIM complies with regulations
in all countries where it operates and adopts a Human Rights policy to prevent violations, following UN
guidelines.
The following actions have been taken:
■
ESG assessment questionnaire at the qualification stage for suppliers at risk (by geographic area,
commodity group, economic impact) that requires a number of certifications including:
•
Ethical-Social Management System or SA8000
•
ISO 45001 "Occupational health and safety management systems."
•
ISO 37001 "Management Systems for the Prevention of Corruption."
•
ISO 30415 (Diversity & Inclusion)
•
programs or organization, management and control models suitable to prevent bribery
•
confidential procedure for reporting behavior that does not comply with the principles of the Code of
Ethics
In 2024, out of a total of 217 qualified suppliers, about 18% are undergoing ESG assessment.
■
Audit with the Joint Alliance for Corporate Social Responsibility. This alliance, which promotes
cooperation among companies in the ICT sector, and of which TIM is one of the founding members, was
created with the aim of improving the quality of audit and review practices. Each year, in accordance with
the JAC, TIM plans at least five audits, to be conducted on-site, or on-desk and outsourced, involving
possible suppliers at risk (by geographic area, commodity group, economic impact). The areas analyzed
concern child labor; forced labor; health and safety; freedom of association; discrimination; disciplinary
practices; working hours; wages and compensation; environment; business ethics. In 2024, 11 Audits were
conducted.
TIM S.A.
The company evaluates suppliers according to Brazilian labor laws, consulting the databases of the "Business
Pact for Integrity and Against Corruption" and the "Brazilian National Pact for the Elimination of Forced Labor."
Suppliers who do not comply with labor laws may not provide services or products to the company. In addition,
TIM does not hire suppliers at risk of child labor.
[31], [MDR-A, 68 d]: The TIM Group, in case of material adverse impacts on workers in the value chain, acts in
accordance with the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles
on Business and Human Rights. This includes respect for the principles and rights set forth in the eight core
conventions of the International Labor Organization and the International Bill of Human Rights.
[33 a, b, c]: To mitigate the detected negative impact on the health and safety of value chain workers, the TIM
group takes an integrated and proactive approach that focuses on:
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■
social due diligence: analysis of impacts on workers (including workers' rights, occupational safety and
health), working conditions, human rights protection and compliance with international standards);
■
supplier qualification and selection: strict procedures with a focus on ISO 45001 certification and
adherence to the TIM Code of Ethics;
■
continuous monitoring: audits and field checks to ensure compliance with TIM standards and international
regulations;
■
capacity building and engagement: training and awareness-raising initiatives for suppliers, promotion of
best practices related to health, safety and workers' rights, and participation in sector and cross-sector
collaborations;
■
corrective actions and improvement plans: development of improvement plans with suppliers to address
significant issues and, if necessary, initiation of corrective actions, including change of supplier.
To report any security incidents or violations, TIM provides a process for receiving reports through the
Supervisory Board of TIM or the Group company concerned, supported by the Audit Function. Within 7 days of
receipt, an acknowledgement is given, and within 3 months, feedback is provided on the follow-up to the
report.
TIM also ensures that processes to remedy negative impacts are available and effective by communicating
them through the supplier portal and institutional website.
[34 a]: To mitigate the risk related to possible human rights violations in the company and along the supply
chain, TIM adopts internal policies, procedures and regulations to ensure compliance with the Code of Ethics
and Conduct. There are reporting and sanction systems for violations, accessible through the Whistleblowing
portal. For suppliers in ESG risk areas, TIM conducts audits and requires specific certifications during
qualification.
[35]: The TIM Group adopts a number of practices in order to avoid causing or contributing to causing material
negative health and safety impacts on workers in the value chain. These include TIM’s request to its suppliers
to adopt the principles outlined in the Health and Safety Policy, the provision of criteria for selecting suppliers
based on health and safety requirements and further initiatives detailed in section MDR-A 68 a-e.
[36]: In 2024, the TIM Group received no reports of serious human rights problems and incidents along the
value chain.
[38]: In order to manage the material impacts that may affect workers in the value chain, the Group makes
available resources from the Procurement, Audit, Legal, Health, Safety & Environment departments and the
Supervisory Body, for the areas under their responsibility.
S2-Metrics and targets
Disclosure Requirement S2-5 Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and opportunities
[41], [MDR-T, 81 b i, ii]: To monitor the effectiveness of policies and actions related to the impacts, risks and
opportunities of workers in the value chain, TIM adopts the following monitoring processes, consistent with
standards and best practices, and performance indicators:
■
Health and safety: Monitoring of suppliers' compliance with Group procedures and policies.
■
Human rights: Monitoring the number of reported incidents involving workers in the value chain.
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Affected communities [ESRS S3]
S3-Strategy
Disclosure Requirement SBM-2 – Interests and views of stakeholders
[S3 SBM-2, 7]: In setting its business strategy, TIM takes into account the opinions, interests and rights of the
affected communities by implementing numerous initiatives and projects to promote their welfare and
development. Through these moments of sharing, the Group also has a way to gather needs to develop and
improve future initiatives. In addition, regarding indigenous peoples, TIM S.A. preliminarily consults these
communities to identify their legitimate expectations before making investments in their areas.
Disclosure Requirement SBM-3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
[S3 SBM-3, 8], [S3 SBM-3, 9 a,b,c,d], [S3 SBM-3, 10], [S3 SBM-3, 11]: Asa leading telecommunications operator,
TIM plays a key role in the country's digital infrastructure, with direct impacts on local communities through
improved access to connectivity and digital services.
From the analysis conducted, there were no material negative impacts, risks or opportunities for the company
related to the affected communities, while the following positive impact was identified:
■
“Projects that promote social inclusion, including through cultural and artistic programs, can help spread
awareness in the community and in the new generations.”
This impact is an expression of the projects that The TIM Group deploys to strengthen its role in the social
context, including in the cultural and artistic spheres. Through innovative technologies and services, TIM
facilitates the connection and activities of the community and the younger generation, contributing to the
inclusive growth of society. Examples of cultural and arts programs include collaboration with IDMO to counter
misinformation and facilitate the dissemination of best practices in the use of digital media, and collaborations
with OPGE to foster training and education in digital citizenship, such as the "Technology - Digital literacy"
program.
In conducting the double materiality analysis, the TIM Group took into account all the interested communities
that may suffer material impacts from the company, including those directly related to its own operations and
the value chain, including through products or services and business relationships. It also includes entities,
regions and central institutions that operate in the reference territory, in Italy and Brazil.
The activities that the TIM Group implements to improve the quality of life of the reference community and to
raise its awareness of issues of social inclusion, by their nature, impact the entire reference community without
a specific geographical location or proximity to the company’s headquarters.
S3-Impact, risk and opportunity management
Disclosure requirement S3-1 - Policies related to affected communities
[14], [MDR-P, 65 a]: The aspects of the IROs that emerged as significant from the double materiality
assessment for the topic ‘affected communities’ are covered in the “Code of Ethics and Conduct of the TIM
Group” and in the “Human Rights Policy”. Both policies are linked to the following positive impact:
■
Projects that promote social inclusion, including through cultural and artistic programs, can help spread
awareness in the community and in the new generations.
The “Code of Ethics and Conduct” guides TIM's actions in carrying out its business, in the belief that a
common vision of ethics in the daily conduct of business is the essential prerequisite for responsible and
sustainable growth. Specifically, the document includes:
■
the distinguishing values of the Group's culture;
■
the rules of ethical behavior for people in the Group and the guidelines for the conduct to be pursued in
dealings with third parties;
■
the objectives and good practices relating to sustainability and social responsibility, in order to conduct
business activities in a way that safeguards the various aspects of the environmental, social and
governance-related affairs of the Group;
■
the methods of complying with the Code through the description of the commitment of corporate boards
and management teams, as well as the approach to managing violations, whistleblowing, and the
methods of disseminating and adopting of the document.
In relation to the IRO material for the topic ‘Affected Communities’, the TIM document underscores its
commitment to:
■
supporting the economic wellbeing and development of the communities where it operate by providing
quality services and introducing technologies to ensure an effective and sustainable digital transition
■
responding to the community’s needs, with particular attention paid to the needs of the most vulnerable
groups, compatible with the objectives of economically efficient management.
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The “Human Rights Policy”aims to make respect for Human Rights an essential requirement in carrying out
the Group’s activities and also concerns third parties who enter into relationships with the company.
The Policy identifies Human Rights that may be influenced, directly or indirectly, by our activities, including
fundamental Human Rights (e.g., working hours, fair wages, minimum working age, workplace conditions)
rights concerning health and safety, rights protecting diversity and discrimination, rights agreed with unions,
also including a number of personal rights related to our core business, such as the rights to access
telecommunications services and innovation (e.g., digital, social and geographical inclusion). In relation to the
IRO material for the topic “Affected Communities”, protection includes the rights of communities where TIM
carries out its activities, with particular attention paid to vulnerable groups of people, such as the rights of
children and young people to be protected from bullying or harassment and the rights to freedom of
expression, supported by access to telecommunication technology.
The policy also sets out the processes through which the company undertakes to respect human rights.
Specifically, all activities within the scope of the policy are subject to periodic internal due diligence inspired by
the Guiding Principles of the United Nations Global Compact , which aims to:
■
identify and map the human rights risks arising from the Group's operational activities;
■
confirm that each topic is governed by a specific internal regulatory framework (for example, policies or
procedures), is monitored and tracked (where possible through appropriate indicators) and has had the
related responsibilities assigned to it;
■
establish a gradual improvement strategy which, beginning with simple compliance with local laws, steers
human rights policies and processes towards engagement with the relevant stakeholders, through
appropriate initiatives designed to engage them.
[14], [MDR-P, 65 b]: The Code of Ethics and Conduct applies to all people in the Group, with particular
reference to the members of the corporate bodies, management, employees of all Group Companies, external
collaborators, and, where required by the company's procedural system, to third parties in business
relationships with the Group. The Human Rights Policy covers all people in the TIM Group and aims to protect
all third parties who enter into business relationships with the company, including affected communities.
[14], [MDR-P, 65 c]: The adoption of the Code of Ethics and Conduct was decided by resolution of the TIM
Board of Directors on March 15, 2023. A periodic review of the Code is also ensured to implement any
necessary updates.
The implementation of the Human Rights Policy is ensured by the first levels of the main relevant business
functions, including: The Sustainability Function, which is responsible for updating the policy; the Human
Resources Department, responsible for complying with the Policy with respect to TIM's people, the
Procurement Department, responsible for complying with the policy in relation to the involvement of the
Group's suppliers; the Compliance department oversees the risk of non-compliance with applicable regulations.
[14], [MDR-P, 65 d]: The Code of Ethics and Conduct is in line with the principles of the United Nations Global
Compact with which TIM complies.
As far as the Human Rights Policy is concerned, the key third-party references used to draft his document are
as follows:
•
UN Universal Declaration of Human Rights, 1948
•
UN International Covenant on Civil and Political Rights, 1976
•
UN International Covenant on Economic, Social and Cultural Rights, 1976
•
UN Human Rights Council, Guiding Principles on Business and Human Rights: Implementing the United
Nations “Protect, Respect and Remedy” Framework, A/HRC/17/31, 2011
•
UN High Commissioner for Human Rights, Guiding Principles on Business and Human Rights,
Implementing the United Nations “Protect, Respect and Remedy” Framework, 2011
•
UN Global Compact Office and Office of the United Nations High Commissioner for Human Rights, A
Guide for Business: How to Develop a Human Rights Policy (2011 e 2015)
•
UNICEF and The Danish Institute for Human Rights, Children’s Rights in Impact Assessments,
December 2013
•
International Labor Organization, Declaration on Fundamental Principles and Rights at Work, 1998
•
International Labor Organization, Conventions 1, 29, 30, 87, 98, 100, 105, 111, 135, 138, 144, 155, 161, 171,
175, 182, 183
•
International Labor Organization Tripartite Declaration of Principles concerning Multinational
Enterprises and Social policy
•
Amnesty International — Italian chapter, Universal Declaration of Human Rights
•
CSR Europe Assessing the effectiveness of company grievance mechanisms, 2013
•
European Commission, ICT Sector Guide on Implementing the UN Guiding Principles on Business and
Human Rights, 2013
•
OECD, Guidelines for Multinational Enterprises, 2011
•
Charter for Equal Opportunities and Equality at Work, signed by Telecom Italia in 2010.
[14], [MDR-P, 65 e]: Group Policies always consider aspects that have emerged as priorities following
discussions with management and with the company’s main external stakeholders and have a strong
influence on business activities and processes.
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[14], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents
available to its stakeholders on its corporate intranet and on the Group’s company website, in compliance with
“least privilege” and “need to know” principles. Where appropriate, for relations with third parties, specific
contractual clauses will be added relating to the acceptance and/or compliance with some of the policies, such
as the Code of Ethics.
[15]: TIM has not identified material impacts related to indigenous peoples; therefore, it does not provide
disclosure on specific provisions relating to policies intended to prevent and manage such impacts.
[16 a]: The TIM Group describes its commitments regarding human rights policy, including community rights, in
its Human Rights Policy (with reference to the latter, as referred to ESRS S1-1 20 a). This Policy is for all the
Group's stakeholders and is in line with the principles promoted in the United Nations Global Compact, which
TIM endorses. Specifically, this policy is in line with the United Nations guiding principles on business and
human rights, with the ILO declaration on fundamental principles and rights at work and with the OECD
guidelines for multinational enterprises.
[16 b]: In Italy, TIM engages with its reference communities through: intraoperative work panels; participation
in working groups organized by trade associations such as ASSTEL, Anitec-Assinform, Confindustria Digitale
Federation; collaboration with public and local bodies; the organization of and/or participation in meetings and
events in the area. At European level, TIM is also a member of the “Large Scale Partnership” with the objective,
thanks to its digital skills, of encouraging the development and implementation of innovative solutions on a
large scale for individuals and businesses for the purposes of the digital transition (for more details on
engagement channels, see the disclosure requirement ESRS2 -SBM2).
In Brazil, TIM S.A. steers its engagement actions on the basis of the principles defined in the “Engagement
Policy” in which it defines, among other things, the communication and engagement channels for its reference
communities.
[17]: The Human Rights Policy is in line with the principles promoted in the United Nations Global Compact,
which TIM endorses. The same policy is in line with the United Nations guiding principles on business and
human rights and the OECD guidelines for multinational enterprises (with reference to the latter, as referred to
ESRS S1-1 20 a). Although the Policy does not contain specific references to compliance with internationally
recognized standards for indigenous peoples, the TIM Group conducts its activities in compliance with all
applicable human rights standards, regardless of ethnic, religious, gender and other aspects that may
characterize the communities concerned, ensuring consistency with the provisions of the United Nations and
the Global Compact, in its capacity as an endorsing member. Lastly, it should be noted that TIM has not
reported cases of non-compliance with the guiding principles inspiring the Policy.
Disclosure Requirement S3-2 - Processes for engaging with affected communities
about impacts
[21 a, b]: The TIM Group guides its decisions and activities by directly involving affected communities through
regular consultations, dialogues, information, and collaboration. For example, in 2024, to promote the
importance of culture in environmental sustainability, TIM launched the "Mission Environment - Generations at
School for Sustainability" project in collaboration with ERG, fostering dialogue between school and company. It
also produced the podcast “Equality Can’t Wait” to discuss issues of social inclusion, gender equality, and the
role of women in society and the world of work.
The TIM Group periodically involves affected communities in varying times and ways depending on the activity.
For example, for the double materiality analysis, stakeholders are involved at the beginning of the process
through e-mail, while for the 4 Weeks 4 Inclusion project, involvement occurs annually through video calls and
e-mail exchanges.
Policies and strategies for stakeholder engagement, including local communities, are overseen at the executive
level by the Chief Public Affairs, Security & International Business Office, the Chief Human Resources &
Organization Office, the Corporate Communication & Sustainability Office, as well as the TIM Foundation in
Italy and the Instituto TIM in Brazil which fund and support community projects.
The TIM Group evaluates the effectiveness of involving affected communities in various ways, depending on
the current activity. In the case of double materiality assessment, for example, it monitors it with the active
participation of stakeholders in answering the questionnaire. In the case of other projects, however, it monitors
community participation and their propensity for involvement through questionnaires.
[22]: In order to better understand the points of view of affected communities, TIM adopts an inclusive
approach in listening to and involving communities, with particular attention paid to groups that may be more
vulnerable, such as women and young people. When designing social responsibility initiatives and digital
inclusion programs for local areas, the company partners associations and non-governmental organizations
that work closely with these groups, including, for example, the Onda Foundation. The collaboration focuses
on participation and support in projects to prevent and combat violence against women, with a particular focus
on education for non-violence. This synergistic approach aims to promote female empowerment, especially
among younger women, while promoting a greater collective awareness of the importance of counteracting
all forms of discrimination.
[23]: TIM S.A’s social responsibility policy is committed to contributing to the economic well-being and growth
of local communities, including traditional communities, indigenous peoples and quilombolas, through the
provision of efficient services and advanced technologies. In addition, TIM S.A. preliminarily consults these
communities to identify their legitimate expectations before making investments in their areas. Finally, it
supports socio-environmental actions in the communities where it operates through sponsorships and
institutional support.
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Disclosure Requirement S3-4 - Taking action on material impacts on affected
communities, and approaches to managing material risks and pursuing material
opportunities related to affected communities, and effectiveness of those actions
[31], [MDR-A, 68 a, b, c, e], [MDR-A, 69 a, b, c]: As part of its activities, the TIM Group deploys actions and
resources that promote social inclusion, including through cultural and artistic programs, which help to foster
an awareness in the community and in the new generations and confirm the TIM Group’s commitment to
supporting innovative activities with a social impact. Most projects, especially those involving partnerships with
other bodies and companies, are repeated annually in order to give continuity to the positive impact the Group
has on communities. For each project, the Group hopes to increase participation and make an increasingly
material positive impact.
Due to the corporate discontinuity that occurred on July 1, 2024, it is also not possible to provide comparative
information on the activities compared to those of previous years.
Domestic BU
■
Women Plus: The program is focused on the empowerment and professional development of women
inside and outside the company. The initiative is based on:
•
engagement with representatives of the local community (women's associations, schools, universities)
to promote the meeting between talents and opportunities in the area.
•
Awareness-raising and Sharing: communication projects dedicated to breaking gender stereotypes,
promoting positive messages and success stories.
By constantly listening to the needs of communities and through the involvement of stakeholders, Women
Plus helps to create an environment in which the values of equal opportunities are effectively protected
and pursued.
The initiative is monitored by looking at the final data on app downloads, which totaled 15,000 downloads
at December 31, 2024. The financial resources used amounted to: OpEx: €2,491k, future OpEx: €200k.
■
"Equality Can't Wait" podcast: is a TIM project that addresses gender equality and is part of the Women
Empowerment initiatives. The episodes, 4 released in 2024 and 2 coming in 2025, are based on true stories,
include exciting interviews and useful data to promote a culture of equality. Produced by Storie Libere, the
podcast was previewed for TIM Group employees on the TIM Academy internal training platform and then
made available on major podcasting platforms. As of December 31, 2024, it recorded 3,900 external views
and 5,338 internal views. The financial resources used in 2024 were €24,875k, with a future budget of €10k.
■
ITS Maria Gaetana Agnesi: TIM is among the founding partners of the Maria Gaetana Agnesi Higher
Technological Institute, with the goal of training new generations of digital professionals. The ITS, hosted
at the TIM Academy in Rome, offers specialized training paths for young graduates in strategic areas such
as Data Analysis and Artificial Intelligence.
■
Italian Digital Media Observatory (IDMO): TIM, is a partner in the second edition of IDMO, the Italian hub
of the EDMO Consortium, which is committed to countering misinformation on the Web and educating
young people to recognize trustworthy content. In the first edition of the project, which ended in the first
quarter of 2024, e-learning courses were produced and webinars delivered on digital literacy, privacy,
information disorder and content creation, which reached 18,000 participations among students and
teachers from 60 educational institutions.
■
Technology Digital Literacy Project with OPGE: the project, born in 2019 from the collaboration between
TIM and the Permanent Youth-Editor Observatory, aims to foster digital literacy among the younger
generation. Aimed at secondary schools enrolled in the “Newspaper in the Classroom” initiative, the
project combines media literacy and digital literacy to help students develop critical awareness and digital
skills needed to properly use digital tools. The financial resources included CapEx of €480k.
■
Distretto Italia: TIM is a partner in Distretto Italia, a program of the ELIS Consortium established in 2023 to
bridge the gap between the demand for technical profiles and youth training. Supported by more than 50
companies, the project offers free orientation and training activities throughout the country in cooperation
with schools, training centers and universities. TIM promotes the program through its communication
channels: social, website and intranet.
■
Mission Environment - Generations at sustainability school: the project was realized in 2024 through a
collaboration between TIM and ERG to spread the culture of sustainability in schools through
intergenerational dialogue. Organizing partner was ELIS, a nonprofit educational organization. The project
is recognized by the Ministry of Education and Merit as a Pathway for Transversal Skills and Orientation
(PCTO) for third and fourth grade secondary school classes. The financial resources used in 2024 amounted
to €34.8k.
■
Vivere Il Prossimo: the call launched by the TIM Foundation focuses on social inclusion, supporting projects
that help families with people with disabilities, particularly minors, in their social, relational, and
employment needs. More than 300 applications were received from all over Italy. The grant was awarded
€113,503k to the “Bread and More” project of the Opera Sacra Famiglia Foundation and €113,121k to the
“Caregiver fatigue - disability and oncological poverty in Taranto” project of the Soleterre Foundation.
■
Vivere l'Arte: the TIM Foundation’s call for proposals focuses on innovative visitor routes and tools in
cultural institutions, museums, galleries, collections, monuments and archaeological areas. With more
than 300 applications received from all over Italy, the call was awarded €130k to the “Galileo Live
Museum” project (Galileo Museum in Florence), €147,276k to the “Vittoriale da vivere” project (Il Vittoriale
degli Italiani Foundation), and €214,520k to the “Vivere il design” project (ADI Compasso d’Oro
Foundation).
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■
Vivere il Talento: the TIM Foundation’s call for proposals concerns the field of scientific research and
education and is dedicated to discovering and promoting steering solutions to prevent the phenomenon of
NEET. The project was very successful, receiving more than 300 applications from all over Italy, with
winning participants located throughout the country, and saw the award of €159.22k for the project by
Federico II University of Naples ‘Talento in gioco’ (‘Talent at play’).
The company has prepared additional initiatives with the aim of producing positive impacts for affected
communities:
■
Accelerating Sustainability in Telecoms (AST): a collaboration between Connect Europe (association of
European telco operators) and Uni Europa ICT, (European ICT union association), aimed at understanding
the impact of new digital technologies on skills and the labor market. The goal is to identify best practices
and business cases of telecom operators and disseminate them through Policy Guidelines translated into 5
languages.
■
4 Weeks 4 Inclusion: conceived by TIM, this is a four-week interagency program with events, webinars and
workshops dedicated to diversity and inclusion. Aimed at TIM people and the public, the program
addresses topics such as gender equality, inclusion of people with disabilities, multiculturalism, and sexual
orientation. Promotes dialogue and exchange of best practices, creating a network of businesses and
organizations committed to supporting local communities and preparing new generations for a more
inclusive future.
■
Fondazione Onda: TIM and Fondazione Onda work together to combat violence against women by
promoting a culture of nonviolence through social and digital projects that address the needs of women,
particularly younger women, and vulnerable communities, with the aim of fostering women's
empowerment and raising collective awareness against all forms of discrimination.
■
42 ROMA Luiss: TIM is a strategic partner of 42 ROMA Luiss, a free coding school based on the French
Ecole 42 model. The innovative teaching program is based on peer-to-peer learning and coopetition,
without lecturers. Launched in 2021, the partnership involves TIM organizing workshops and internships for
students, while LUISS launches calls for ideas on topics of interest to TIM.
■
Career Days and Company visits: In 2024, TIM participated in the Career Days and Job Fair of major Italian
universities, with a focus on STEM events. It also organized a company visit for female students from the
Turin Polytechnic University at the Customer Innovation Center, where they attended demos on TIM’s new
technology products.
TIM S.A.
■
Bateria do Instituto TIM (Drum Group): inclusive initiative in Rio de Janeiro organized by Instituto Tim that
offers music education to children, youth, and adults, with and without disabilities, to promote inclusion
and develop musical skills. The program involved 250 participants, including 56% with disabilities and 30%
living in favelas, producing 56 performances.
■
Exponential Education: the project implemented by Instituto TIM and the NGO One By One, offers a
technology literacy and digital entrepreneurship course to socially vulnerable people with and without
disabilities. It involved 82 participants in 2024 and generally contributes to the digital inclusion of nearly
100 people a year.
■
Edital Fortalecendo Redes: the initiative strengthens non-governmental organizations in the Gerando
Falcões network, which are active in the areas of culture, sports, leisure and education. The project aims to
support organizations working with children, adolescents and youth in socially vulnerable situations by
promoting their human development. The goal is to help about 9,000 people.
All activities conducted by Instituto TIM during 2024 had an OpEx equal to €446k.
[32 d]: The Group monitors the effectiveness of actions taken through people’s participation and to the results
achieved. For example, in the case of Distretto Italia, 37 courses were held during 2024 and 421 people were
trained, with a placement rate of 96.8%; while in the case of the Technology Digital Literacy project with OPGE,
the 2024/2025 edition has 3,003 enrolled classes, with 353 trainers and 78,078 students.
[36]: As part of the proposed initiatives, no serious human rights problems and incidents were reported during
2024 in relation to affected communities.
[38]: In order to manage the positive impact related to the affected communities, the Group: employs
economic resources to finance projects and partnerships, and internal human resources to ensure their proper
execution; provides information dissemination through channels inside and outside the company.
S3- Metrics and targets
Disclosure Requirement S3-5 – Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks and opportunities
[41], [MDR-T, 81 b i, ii]: To monitor the effectiveness of policies and actions related to the impacts, risks and
opportunities of affected communities, TIM adopts the following monitoring processes, which comply with
standards and best practices and performance indicators:
■
with reference to community social inclusion aspects, the Group monitors the number of initiatives
involving institutes, schools and research organizations;
■
with reference to aspects related to the production of positive impacts for the community, the Group
monitors the satisfaction of the participants in the proposed initiatives through the satisfaction
questionnaires that it administers at the end of each activity or project carried out.
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Consumers and end-users [ESRS S4]
S4-Strategy
Disclosure Requirement SBM-2 – Interests and views of stakeholders
[S4 SBM-2, 8]: In setting its business strategy, TIM considers the interests, opinions and rights of consumers
and/or end users as a priority. Feedback and active involvement of consumers and the organizations that
represent them in various capacities are used to monitor the level of satisfaction and response to new offerings
or projects and initiatives launched, guiding the company's future actions.
Disclosure Requirement SBM-3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
[S4 SBM-3, 9 d], [S4 SBM-3, 10 a]: The TIM Group, as a leading operator in telecommunications and digital
services, recognizes that impacts on consumers and end users arise directly from its business model and guide
strategic decisions. Network reliability, data protection, and cybersecurity, as well as the deployment of new
technologies (5G, cloud computing, IoT, AI) are essential to ensure a safe and quality user experience and to
improve consumers' lives, but they require careful management of potential impacts, such as technological
obsolescence and the risk of misinformation.
From a risk perspective, TIM considers, for example, possible cyber attacks or privacy breaches that could
undermine consumer confidence and lead to regulatory sanctions. Precisely for this reason, the Company
constantly invests in resilient infrastructure, data protection, and digital education initiatives to raise users'
awareness of the conscious use of technology
The impacts, risks and opportunities that emerged from the double materiality analysis for consumers and
end users, related to own operations and the value chain, show how:
■
the types of end users considered are: customers who purchase TIM products and services and interact
directly with the Company; consumers, i.e., end users who use the acquired products/services;
■
No material risks have been identified with regard to the use of products that may harm the health of
consumers and end users;
■
Consumers and/or end users of TIM services may be exposed to negative impacts in relation to privacy
rights and the possible violation of personal data;
■
All those considered end users need accurate and accessible information on products or services for
conscious use and transparent business practices that can promote informed choices.
■
Among the end users of the TIM Group, minors may be among those who are particularly vulnerable to
privacy impacts.
[S4 SBM-3, 10 b]: Compared to the three material negative impacts that emerged from the double
materiality analysis, two appear to be general in nature, namely:
■
"Digital illiteracy widens socio-economic gaps and does not allow full customer participation in the
economy".
■
“The inability of the company or supply chain to conduct a responsible business, which responds to ethical
social demands and transparent business practices, may limit competition and consumers’ informed
choices”.
The negative impact associated with the individual non-material incidents recorded during 2024, on the other
hand, appears to be as follows:
■
“Potential cybersecurity threats may involve the leak of sensitive customer and/or employee data”.
[S4 SBM-3, 10 c]: The TIM Group, through the offerings of voice and internet services and products managed
and developed in fixed and mobile, the offerings of connectivity services and products and ICT solutions, the
offering of international voice, data and internet services, generates the following three material positive
impacts on consumers who can be individuals, families, small and medium-sized businesses, or large national
and international companies:
■
“The adoption of digital technologies in business processes can improve the quality of service to customers
and the ability to manage unexpected events that may interfere with the continuity of the service”;
■
“The expansion in the offering of technologies and digital access (for example, PEC, digital signature, SPID)
can lead to more inclusive connectivity for consumers”;
■
“Connectivity solutions that use digital technologies such as IoT, Big Data and AI ensure better data traffic
planning for the benefit of customers”.
[S4 SBM-3, 10 d]: The double materiality analysis found the following eight material risks from impacts on
consumers and/or end users:
■
“Cyber attacks and sabotage to physical infrastructure can cause an interruption in the operational
continuity of services, causing a deterioration in economic and financial performance and reputational
damage”;
■
“Unauthorized access to the personal data of customers or employees can result in legal liability, regulatory
sanctions, economic and financial damage and reputational damage”;
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■
“Risks related to online security, such as cybercrime, cyberbullying and inappropriate content can result in
legal liability, economic and financial losses and damage to reputation”;
■
“The spread of pandemics or the occurrence of geopolitical conflicts can lead to potential shortages in the
supply of goods and services and price increases, with consequences on the continuity of business activities
and on the company’s economic-financial flows”;
■
“Failure to implement digital inclusion actions aimed at the accessibility and continuity of the services
offered may result in customer dissatisfaction, potential sanctions and economic and financial losses”;
■
“Potential legal liabilities and financial sanctions deriving from antitrust investigations (e.g. incorrect business
practices) can damage corporate reputation, with consequences on the company’s economic and financial
flows”;
■
“The lack of technological transformation of legacy infrastructures and platforms can reduce the quality of
service offered to customers and increase the vulnerability of systems, with consequences on business
reputation”;
■
“Failure to achieve coverage objectives may limit the offering of high-speed connectivity, with consequences
on the customer experience and on economic-financial flows”.
Instead, below are the three material opportunities arising from impacts on consumers and/or end users:
■
“Personalized and transparent offerings and seamless connectivity improve the customer experience,
encouraging customer loyalty with consequences on the company’s economic and financial flows”;
■
“The acceleration of fiber roll-out and 5G can promote digital transformation and the enablement of new
services and applications, contributing to greater customer satisfaction and the consolidation of market
leadership”;
■
“The development of new business models that use advanced digital technologies (e.g. 5G, AI) can improve
the company’s operational efficiency, with consequences on economic-financial flows and benefits for
consumers”.
[S4 SBM-3, 11], [S4 SBM-3, 12]: The main types of consumers and/or end users negatively affected by the
material impacts of the TIM Group include weaker customer groups with lower levels of literacy, such as
children, the elderly and people who are not aware of IT risks, in particular for privacy and cybersecurity.
On the occasion of the double materiality analysis, the materiality of the impacts on the part of the category of
customer stakeholders was evaluated, being able to identify the impacts that negatively influence them and
the risks associated with them.
The material opportunities identified, on the other hand, concern all types of customer and consumer as they
relate to the potential offered to the dissemination of new technologies and the use of digital services.
S4-Impact, risk and opportunity management
Disclosure requirement S4-1 - Policies related to consumers and end users
[15], [MDR-P, 65 a]: The aspects of the IROs that emerged as significant from the double materiality
assessment for the topic “Consumers and End-Users” are covered in the “Human Rights Policy”, the “Code of
Ethics and Conduct”, the “Information Security Policy”, the “System of rules for the application of personal
data protection regulations” and the “Services Charter”. All documents are linked to the following material
impacts, risks and opportunities that emerged from the double materiality assessment:
Negative impacts
■
"Digital illiteracy widens socio-economic gaps and does not allow full customer participation in the
economy"
■
"Potential cybersecurity threats may involve the leak of sensitive customer and/or employee data";
■
"The inability of the company or supply chain to conduct a responsible business, which responds to ethical
social demands and transparent business practices, may limit competition and consumers’ informed
choices".
Positive impacts
■
"Connectivity solutions that use digital technologies such as IoT, Big Data and AI ensure better data traffic
planning for the benefit of customers";
■
"The adoption of digital technologies in business processes can improve the quality of service to customers
and the ability to manage unexpected events that may interfere with the continuity of the service";
■
"The expansion in the offering of technologies and digital access (for example, PEC, digital signature, SPID)
can lead to more inclusive connectivity for consumers".
Risks
■
"The lack of technological transformation of legacy infrastructures and platforms can reduce the quality of
service offered to customers and increase the vulnerability of systems, with consequences on business
reputation";
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■
"Failure to achieve coverage objectives may limit the offering of high-speed connectivity, with consequences
on the customer experience and on economic-financial flows";
■
"Failure to implement digital inclusion actions aimed at the accessibility and continuity of the services
offered may result in customer dissatisfaction, potential sanctions and economic and financial losses";
■
"The spread of pandemics or the occurrence of geopolitical conflicts can lead to potential shortages in the
supply of goods and services and price increases, with consequences on the continuity of business activities
and on the company’s economic-financial flows";
■
"Risks related to online security, such as cybercrime, cyberbullying and inappropriate content can result in
legal liability, economic and financial losses and damage to reputation";
■
"Cyber attacks and sabotage to physical infrastructure can cause an interruption in the operational
continuity of services, causing a deterioration in economic and financial performance and reputational
damage";
■
"Unauthorized access to the personal data of customers or employees can result in legal liability, regulatory
sanctions, economic and financial damage and reputational damage";
■
"Potential legal liabilities and financial sanctions deriving from antitrust investigations (e.g. incorrect business
practices) can damage corporate reputation, with consequences on the company’s economic and financial
flows".
Opportunities
■
"Personalized and transparent offerings and seamless connectivity improve the customer experience,
encouraging customer loyalty with consequences on the company’s economic and financial flows";
■
"The development of new business models that use advanced digital technologies (e.g. 5G, AI) can improve
the company’s operational efficiency, with consequences on economic-financial flows and benefits for
consumers";
■
"The acceleration of fiber roll-out and 5G can promote digital transformation and the enablement of new
services and applications, contributing to greater customer satisfaction and the consolidation of market
leadership".
The Code of Ethics and Conduct guides TIM's actions in carrying out its business, in the belief that a common
vision of ethics in the daily conduct of business is the essential prerequisite for responsible and sustainable
growth. Specifically, the document includes:
■
the distinguishing values of the Group's culture;
■
the rules of ethical behavior for people in the Group and the guidelines for the conduct to be pursued in
dealings with third parties;
■
the objectives and good practices relating to sustainability and social responsibility, in order to conduct
business activities in a way that safeguards the various aspects of the environmental, social and
governance-related affairs of the Group;
■
the methods of complying with the Code through the description of the commitment of corporate boards
and management teams, as well as the approach to managing violations, whistleblowing, and the
methods of disseminating and adopting of the document.
In relation to the IROs material for the topic “Consumers and End-Users”, the TIM document underscores its
commitment to:
■
operating with a view to the excellence of the service offered, with dedication and professionalism, in order
to meet the expectations and needs of customers;
■
basing contracts on transparency, professional fairness, compliance with sector regulations, and courtesy
and collaboration, in line with our commitment to the importance of our customers;
■
protecting information generated or acquired within the Company or in the course of business
relationships, safeguarding the confidentiality required in conducting business, in compliance with the
appropriate regulations.
The “Human Rights Policy” aims to make respect for Human Rights an essential requirement in carrying out
the Group’s activities and also concerns third parties who enter into relationships with the company.
The Policy identifies Human Rights that may be influenced, directly or indirectly, by our activities, including
fundamental Human Rights (e.g., working hours, fair wages, minimum working age, workplace conditions)
rights concerning health and safety, rights to protect diversity and discrimination, trade unit rights. In relation
to IROs material for the topic “Consumers and End-Users”, protection includes a number of personal rights
related to our core business, such as: rights to access telecommunication services and innovation (for example,
digital, social and geographical inclusion) or rights to the needs of the individual in developing services and
products; rights to privacy of the Group's customers, as well as to their security; rights potentially violated by
value-added services (including services with content reserved for adults and gambling); Customers' rights to
responsible advertising.
The policy also sets out the processes through which the company undertakes to respect human rights.
Specifically, all activities within the scope of the policy are subject to periodic internal due diligence inspired by
the Guiding Principles of the United Nations Global Compact which aims to:
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■
identify and map the human rights risks arising from the Group's operational activities;
■
confirm that each topic is governed by a specific internal regulatory framework (for example, policies,
procedures), is monitored and tracked (where possible through appropriate indicators) and has had the
related responsibilities assigned to it;
■
establish a gradual improvement strategy which, beginning with simple compliance with local laws, steers
human rights policies and processes towards engagement with the relevant stakeholders, through
appropriate initiatives designed to engage them.
The ‘Information Security Policy focuses on the protection of information and all related assets, as a
fundamental element for the protection and continuity of business processes.
The Group undertakes to:
■
establish processes, roles and responsibilities to ensure information security;
■
guarantee a level of confidentiality, integrity and availability of information proportional to the respective
business value, or to the direct or indirect losses that a security incident may have regarding the services
provided to customers;
■
guarantee the security of services provided to its customers and the levels of business continuity provided
for in contracts.
TIM has an Information Security Management System in place that guarantees the governance of specific
processes and activities for the security of information assets.
The ‘System of rules for the application of personal data protection regulations in the TIM Group’ sets out
the norms and operating rules for the Group that govern the processing of personal data, in accordance with
applicable legal and regulatory provisions on personal data protection.
The document concerns the processing of personal data of all the company's stakeholders, defining the
methods of corporate oversight and related responsibilities, as well as the technical/organizational measures
for data protection.
Regarding customers, the document refers to the regulations and procedures to be observed in the processing
of their personal data with reference, among other things, to marketing and sales activities, profiling, loyalty,
market research, trials, prevention and combating late payments and fraud, as well as to the specific
provisions provided for electronic communications (e.g. regarding traffic data and geolocation data, cookies).
Lastly, TIM publishes the 'Services Charter', for fixed and mobile phone services, with the aim of establishing a
transparent relationship with its customers. The document summarizes the company's main services, terms of
service, complaint procedures, service quality standards, and contractual information.
To contextualize the Group's policies in the Brazilian business context, TIM S.A. has set out a ‘Privacy Policy’
that defines how the company collects, uses and protects the personal data of its customers, in line with the
General Law on the Protection of Personal Data (LGPD), 13709/2018. The policy also states that the company
does not allow minors to take out contracts for TIM Products/Services, nor does it process Personal Data of
individuals under 18 years of age, in the provision of TIM Services, even if paid for by adults.
The “Cybersecurity Policy” is another material policy, which defines guidelines to promote the IT security of
telecommunications networks and services and protect the critical telecommunications infrastructures of the
Group’s companies, in accordance with current legislation, with the aim of preventing and minimizing impacts
related to cyberattacks. In its policy, TIM is committed, among other things, to fostering a culture of cyber
prevention, to ensuring a prompt response to incidents, and to securely storing the data of employees,
suppliers, business partners and customers.
[15], [MDR-P, 65 b]: The Code of Ethics and Conduct applies to all people in the Group, with particular reference
to the members of the Corporate Boards, management, employees of all Group Companies, external
collaborators, and, where required by the company’s procedural system, to third parties in business
relationships with the Group.
The Human Rights Policy concerns all the people of the TIM Group and aims to protect all third parties who
enter into business relationships with the company.
The Information Security Policy is for all Group functions and companies that, within the scope of their specific
responsibilities, operate in various ways using company information and data.
The ‘System of rules for the application of personal data protection regulations in the TIM Group’ is aimed at all
companies in the TIM Group, and in particular their respective internal privacy delegates, who must ensure the
correct application of the system by their respective business functions.
Lastly, the ‘Services Charter’ is for all TIM fixed network and mobile network customers.
[15], [MDR-P, 65 c]: The adoption of the Code of Conduct was decided by resolution of the TIM Board of
Directors on March 15, 2023. A periodic review of the Code is also ensured to implement any necessary
updates.
The implementation of the Human Rights Policy is ensured by the first levels of the main relevant business
functions, including: The Sustainability Function, which is responsible for updating the policy; the Human
Resources Department, responsible for complying with the Policy with respect to TIM's people, the
Procurement Department, responsible for complying with the policy in relation to the involvement of the
Group's suppliers; the Compliance department oversees the risk of non-compliance with applicable regulations.
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The Information Security Policy is approved by the Compliance, Public Affairs, Security & International Business
Office and Human Resources & Organization departments, in order to ensure consistency between TIM's
strategy and the policy content.
The adoption of the ‘System for the application of personal data protection regulations’ is ensured, in TIM and
in the Group Companies, by internal privacy officers, with necessary support and advice from the Privacy
Department (in TIM) and the Privacy Coordinators (in the Group Companies). In fact, the Privacy department is
responsible, within the context of the role of TIM's Data Protection Officer (DPO), for steering, coordinating and
overseeing the correct application of privacy legislation at Group level; in the Group’s companies, this role is
held by the Privacy Coordination figure, in conjunction with TIM’s DPO.
Lastly, the application of the Services Charter is overseen by the various business functions, that work together
to ensure compliance with the service standards described.
[15], [MDR-P, 65 d]: The Code of Ethics and Conduct is in line with the principles of the United Nations Global
Compact with which TIM complies.
As far as the Human Rights Policy is concerned, the key third-party references used to draft his document are
as follows:
•
UN Universal Declaration of Human Rights, 1948
•
UN International Covenant on Civil and Political Rights, 1976
•
UN International Covenant on Economic, Social and Cultural Rights, 1976
•
UN Human Rights Council, Guiding Principles on Business and Human Rights: Implementing the United
Nations “Protect, Respect and Remedy” Framework, A/HRC/17/31, 2011
•
UN High Commissioner for Human Rights, Guiding Principles on Business and Human Rights,
Implementing the United Nations “Protect, Respect and Remedy” Framework, 2011
•
UN Global Compact Office and Office of the United Nations High Commissioner for Human Rights, A
Guide for Business: How to Develop a Human Rights Policy (2011 e 2015)
•
UNICEF and The Danish Institute for Human Rights, Children’s Rights in Impact Assessments,
December 2013
•
International Labor Organization, Declaration on Fundamental Principles and Rights at Work, 1998
•
International Labor Organization, Conventions 1, 29, 30, 87, 98, 100, 105, 111, 135, 138, 144, 155, 161, 171,
175, 182, 183
•
International Labor Organization Tripartite Declaration of Principles concerning Multinational
Enterprises and Social policy
•
Amnesty International — Italian chapter, Universal Declaration of Human Rights
•
CSR Europe Assessing the effectiveness of company grievance mechanisms, 2013
•
European Commission, ICT Sector Guide on Implementing the UN Guiding Principles on Business and
Human Rights, 2013
•
OECD, Guidelines for Multinational Enterprises, 2011
•
Charter for Equal Opportunities and Equality at Work, signed by Telecom Italia in 2010.
For the Information Security Policy, the main external references of the document refer to:
•
ISO/IEC 27000:2018 - Information technology - Security techniques - Information security management
systems - Overview and vocabulary
•
ISO/IEC 27001:2022 - Information security, cybersecurity and privacy protection – Information security
management systems - Requirements
•
ISO/IEC 27002:2022 - Information security, cybersecurity and privacy protection — Information security
controls
•
ISO/IEC 27035-1:2023 Information technology - Information security incident management - Part 1:
principles and process
•
ISO/IEC 27035-2:2023 Information technology - Information security incident management - Part 2:
Guidelines to plan and prepare for incident response
•
ISO/IEC 27035-3:2020 Information technology – Information security incident management - Part 3:
Guidelines for ICT incident response operations.
For the “System of Rules for the application of personal data protection regulations in the TIM Group”, the
main regulatory references are:
•
the General Data Protection Regulation (Regulation (EU) 2016/679, aka the GDPR)
•
Personal data protection code (Legislative Decree 196/2003 as amended)
•
Data Protection Authority provisions.
Lastly, the TIM Services Charter is drawn up based on the guidelines established by the National Telecoms
Regulator (Resolution 179/03/CSP as amended).
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[15], [MDR-P, 65 e]: The Group Policies take into account aspects identified as fundamental and priority by
analyses conducted internally and with external stakeholders. These aspects are strongly linked to the
operations of the TIM Group Companies.
[15], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents
available to its stakeholders on its corporate intranet and on the Group’s company website, in compliance with
“least privilege” and “need to know” principles. Where appropriate, for relations with third parties, specific
contractual clauses will be added relating to the acceptance and/or compliance with some of the policies, such
as the Code of Ethics and Conduct.
[16 a]: The TIM Group describes its commitments regarding human rights policy, including the rights of
consumers and end-users, in its Human Rights Policy. The Policy, aimed at all the Group's stakeholders and in
line with the principles promoted in the United Nations Global Compact, of which TIM is a member, explicitly
refers to the United Nations guiding principles on business and human rights, the ILO declaration on
fundamental principles and rights at work and the OECD guidelines for multinational enterprises.
[16 b]: In its Human Rights Policy, TIM specifically encourages its stakeholders, including consumers and end-
users, to provide feedback on the Policy itself with a view to continuous improvement.
[16 c]: To remedy the impacts on human rights, TIM, through the “Whistleblowing Procedure”, governs the
process of managing reports, referring to Group employees and/or third parties, concerning breaches of laws
and regulations of Group Conduct, including potential violations of Human Rights.
[17]: TIM is one of the founders of and active participants in the local networks of Global Compact Italy and
Brazil and in the JAC, an initiative in the ICT sector that has the common objective of raising Human Rights
standards (social, environmental and ethical) within the supply chain.
In line with principles also promoted in the United Nations Global Compact, TIM has drafted the Human Rights
Policy, also referring to consumers and end-users. This policy is in line with:
■
the United Nations Guiding Principles on Business and Human Rights;
■
the ILO declaration on fundamental principles and rights at work;
■
OECD guidelines for multinational enterprises;
■
the International Charter of Human Rights.
In the value chain downstream of TIM, no cases of non-compliance with these guiding principles inspiring the
policy have been reported. This result reflects the Group's commitment to the promotion and protection of
Human Rights, achieved through respect for international standards, a broad interpretation of rights, the
involvement of partners, the management of negative impacts and the availability of complaint mechanisms.
The TIM Group explains its policies to its reference stakeholders in compliance with ‘least privilege’ and ‘need to
know’ principles, through its institutional website, the corporate intranet, the supplier portal, as well as, in some
cases, through appropriate reference in contractual clauses to be familiar and/or comply with the Group's
policies. To increase the accessibility of the information contained in the policies, the documents are written in
Italian, English and Portuguese.
Disclosure Requirement S4-2 -Processes for engaging with consumers and end-users
about impacts
[20 a, b]: The company takes into account the expectations and opinions of consumers, in the belief that
robust and satisfactory relationships are the only way to guarantee long-term value. The feedback and active
involvement of consumers and the organizations that represent them in various capacities are fundamental to
guide the company's actions and improve its business strategies. TIM directly confronts the issues most
material to its business through the consultation, dialogue, information and collaboration activities that are
organized periodically.
Quality and customer experience are monitored by an extensive continuous system of listening to end
consumers during all stages of their Customer Journey (from acquisition to possible termination), which is one
of the inputs used for defining improvement actions. This system includes, among other things, market
insights, customer satisfaction monitoring activities, satisfaction surveys on the occasion of the launch of new
products/services.
Another important moment of engagement with consumers is the double materiality analysis, which aims to
identify and evaluate the impacts, risks and opportunities material to the company and preparatory to
preparing its sustainability report. During this analysis, all classes of stakeholders identified, including end
consumers, are involved in a survey where they have to evaluate the impacts of the company's activities on
the environment and society. As many as 3,000 consumers were surveyed in 2024.
TIM cooperates with consumer associations to ensure their rights are protected, improve the quality of services
offered, and promote information. In 2024, for example, the “Fiber” training course for Consumer Associations
was completed to provide an in-depth understanding of the technical characteristics of fiber optics and its
advantages over other connection technologies. Also in 2024, a meeting was held with all Consumer
Associations to announce and share the logic of the TIM Plan for decommissioning its copper access network.
With respect to Enterprise customers, TIM Enterprise takes a structured approach to directly engaging
customers through:
■
digital factories for specific business areas (Cloud, IoT, Cybersecurity, Digital Identity), ensuring direct and
personalized relationships with customers;
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■
quarterly surveys conducted by third parties on key touchpoints and processes, using certified metrics such
as CSI and NPS to measure satisfaction.
TIM S.A.
TIM S.A. also takes into account consumer expectations and opinions through customer engagement that
takes place at different times and in different ways during the year through various channels:
■
Multichannel service: App Meu TIM; Virtual assistant; Social media; WhatsApp; Online chat; Call Center:
144* and 1056*; Meu TIM website;
■
Ombudsman: a second-instance channel that provides assistance to customers who have already used
TIM's service channels;
■
Specialized service for the deaf;
■
Surveys on experience and satisfaction, such as consumer profiles and habits, the attractiveness of services
and products and the image;
■
Branding initiatives that aim to bring the Company closer to customers, including actions created as part of
major events, such as Rock in Rio.
In addition to the aforementioned channels, another consumer engagement initiative of TIM S.A. involves the
establishment of the TIM Users’ Council, which aims to bring the company closer to customers and consumer
protection associations. The Council promotes social participation in service delivery, contributing to a more
engaged society on telecommunications issues. It also provides input for continuous improvement of the
customer experience.
[20 c]: Operational responsibility for ensuring the engagement and satisfaction of consumers and end-users
and enterprise results lies with the two main business lines such as the Chief Enterprise and Innovative
Solutions Office and the Chief Consumer, Small & Medium and Mobile Wholesale Market Office, with support
from the Data Analytics, Artificial Intelligence & Customer Insight function within the Chief Strategy & Business
Development Directorate.
With regard to double materiality, the TIM Group's policies, commitments and strategies on stakeholder
involvement are monitored at executive level by the Corporate Communication & Sustainability Department
under the supervision of the Sustainability Committee, which operates at the level of the Board of Directors. In
the context of TIM's more institutional initiatives, supervision with consumer associations is overseen by the
Customer Protection & Transparency function within the Legal, Regulatory & Tax Department.
In Brazil, TIM S.A.’s Chief Revenue Officer (CRO) and Customer Experience & Ombudsman are dedicated to
ensuring that customer engagement takes place. The latter function ensures the definition of strategy,
customer experience improvement initiatives, and provides methodological support to business segment lines
for conducting market research, monitoring satisfaction indicators, and generating insights to ensure
implementation of best practices, as well as actions to develop a Caring for the Customer culture.
[20 d]: The TIM Group evaluates the effectiveness of consumer and/or end-user involvement in the following
ways:
Domestic BU
TIM oversees the effectiveness of consumer engagement, quality and customer experience, through an
extensive engagement system that detects the customer’s journey at the various touch points and allows us
to define specific improvement plans to give value to customer feedback. Italian market surveys include the
monitoring of the ‘Customer Satisfaction Index’ based on the ACSI standard (American Customer Satisfaction
Index), which was particularly important, measuring the quality perceived by TIM customers and customers of
main competitors. In 2024, the CSI value for consumer customers in the Italian perimeter fell slightly compared
to 2023 figures. The Small and Medium Business segments, on the other hand, reported an increase, compared
to the previous year, in the CSI value, reaching the assigned targets. In addition, TIM Enterprise evaluates the
effectiveness of engagement through the continuous monitoring of perceived quality and the creation of
personalized SLAs with customers.
TIM S.A.
The company maintains an open dialogue with its customers by means of research and the declarations
registered with consumer protection agencies, such as Procons, the website Consumidor.gov.br, the Special
Civil Courts and Anatel. In this way, it can constantly evaluate and monitor customer needs.
Regarding surveys to assess customer experience and satisfaction, TIM S.A. has been conducting "Experience"
and "Net Promoter Score (NPS)" surveys on its customers and competitors through continuous interviews
since June 2017. It also assesses customer satisfaction after contact with the call center. Anatel conducts an
annual survey on satisfaction and perceived quality of telecommunication services.
The Company has a team dedicated to monitoring transactional NPS in the mobile and Ultra Fiber segments,
which develops plans to improve service experience and satisfaction in collaboration with different business
lines.
[21]: To better understand the point of view of consumers and/or end-users, TIM has always maintained
relationships with trade associations that also advocate for the most vulnerable. TIM has always been on the
consumer protection front to counter particularly aggressive commercial actions and policies or commercially
unfair practices.
In Brazil, TIM S.A. offers an accessible online space for people with visual, hearing and speech disabilities,
following WCAG and W3C guidelines. Among the resources available, the Libras Center allows customers
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using Brazilian Sign Language to communicate via video call with a 24/7 specialized intermediary. Starting in
2022, the company will also offer a WCAG-compliant keyboard navigation experience.
Disclosure Requirement S4-3 - Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns
[25 a]: In line with the OECD guidelines that require companies to protect human rights, including those of
consumers, TIM ensures accessible and fair remedy mechanisms in order to resolve any disputes in an
appropriate and transparent manner.
[25 b, c]: The TIM Group makes available to its consumers and/or end-users multiple reporting channels so that
they can communicate their concerns or needs and receive assistance.
Within the Domestic BU , the following channels are available:
■
Whistleblowing Channel;
■
Human and non-human Customer Care channels to report malfunctions on the network and/or other
services as well as to file commercial and administrative complaints such as: 187 fixed line Customer
Service; 119 mobile Customer Service; 119 business Customer Service; the My TIM app (residential
customers) and the MyTIM business app (business customers); TIM's commercial site with business and
technical support sections and with the possibility of filling out a form to report needs thanks to the virtual
assistant Angie (chatbot, also present on the MyTIM APP);
■
Social channels (Facebook, Instagram, X, LinkedIn);
■
The Group's institutional website www.gruppotim.it for reports of behavior or events attributable to cases
of abuse in the use of network services offered by Telecom Italia;
■
TIM AI Customer Assistant: the artificial intelligence-based virtual assistant, revolutionizes business
interactions by offering advanced digital assistance. By analyzing customer data, it can offer tailored
answers and solutions, improving the customer experience and increasing customer loyalty.
In Brazil, TIM S.A. provides the following specific channels: App Meu TIM; Virtual assistant; Social media;
WhatsApp; Online chat; Call Center: 144* and 1056*; the Meu TIM website, the Ombudsman’s Office, meetings
of the User Council and the Whistleblowing Channel.
[25 d]: The TIM Group through the Customer Care function, in Italy and Brazil, ensures caring activities,
addressing and managing the reports raised by end consumers. In particular, this function ensures that the
technical and administrative assistance process is properly managed and monitored on an ongoing basis. In
this process, end-consumers are involved in satisfaction surveys in which they have the opportunity to give
feedback on the level of care they receive.
With reference to IT security, TIM ensures the effectiveness of processes aimed at mitigating risks and negative
impacts by measuring the number of incidents occurring on the systems perimeter, employee workstations,
public network service nodes and data center infrastructure.
[26]: The TIM Group informs consumers of the channels and processes for expressing concerns and receiving
assistance through commercial sites and the corporate site, handling each report in a timely manner and
monitoring the effectiveness of reports. The Whistleblowing procedure guarantees anonymity and protection
of the identity of the whistleblower, revealed only with express consent and to authorized persons. TIM
Enterprise uses digital tools and information activities to inform users on how to report, providing protections
against retaliation through secure and confidential mechanisms.
Disclosure Requirement S4-4 – Taking action on material impacts on consumers and
end- users, and approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness of those actions
[30], [MDR-A, 68 a,b,c,e], [29 a], [MDR-A, 69 a, b, c]: In relation to the IROs that have emerged from the double
materiality analysis regarding “consumers and end users”, the Group deploys actions and resources regarding
aspects related to the following issues:
1.
Information-related impacts for consumers and/or end-users;
2.
Personal safety of consumers and/or end-users;
3.
Social inclusion of consumers and/or end users.
Actions are targeted at customers both in Italy and in Brazil, and involve internal operations and the value
chain, especially in terms of providing technological solutions.
Due to the corporate discontinuity that occurred on July 1, 2024, it is also not possible to provide comparative
information on the activities compared to those of previous years.
1.
Information-related impacts for consumers and/or end-users
The following describes actions aimed at preventing cyber attacks and sabotage on company systems, which
can disrupt business continuity of services and/or cause the leakage or unauthorized access of sensitive
customer data.
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Domestic BU
TIM ensures the logical security and protection of IT and infrastructure resources through the Cyber Security
process, which includes the following activities:
■
ICT Risk Management: The process focuses on technology assets to ensure Confidentiality, Integrity and
Availability (RID) of information. This process identifies security and compliance requirements to reduce the
vulnerability of ICT assets, defines security countermeasures validated by technical controls, and verifies
their effectiveness. Where necessary, re-entry plans are defined for risk treatment, the results of which are
formalized in the ICT Asset Security Plan.
■
Cyber Threat Intelligence (CTI): the process includes several key steps: the collection of data from various
internal and external sources to acquire data on threats or threat actors (TAs) and the techniques they
use; threat analysis to identify patterns and trends; the sharing of relevant information within the
organization to prepare for countering threats; the implementation of security measures to prevent, detect
and respond to attacks (includes the management of Indicators of Compromise (IoC); continuously
monitoring and reviewing security strategies to adapt to new threats and improve the effectiveness of
defenses.
■
Vulnerability Assessment: Two main activities are carried out in the field inspection phase, which allows
for the verification of the gap between the security requirements of the Security Plan and their
implementation in the IT infrastructure: The Vulnerability Assessment and Penetration Test. Vulnerability
Assessment is an automated activity that identifies vulnerabilities in IT systems, while Penetration Test is a
manual activity performed by experts in ethical hacking to test the resilience of IT infrastructures. The
objective is to assess the security level of ICT Assets by identifying vulnerabilities and attack vectors in the
operating environment and assessing the risk.
This activity is integrated into a continuous security cycle and can be performed periodically or after
changes to the IT infrastructure. The process includes a monthly scan of exposed resources on the Internet
that are considered high risk. Upon completion, the Safety Plan (PDS) is updated with the information
gathered, providing a more realistic risk picture.
■
Cyber Security Engineering and operations services: these activities involve the engineering, development
and testing of centralized security solutions that enable the identification, protection, detection and
response processes outlined by the National Institute of Standards and Technology (NIST) Cybersecurity
Framework. In particular, the activities focus on:
•
data security: identity and access management, authentication, authorization and accounting
platforms for business applications, databases and operating systems (e.g. IAM, PAM, 2FA, MOTP);
•
application security: solutions to protect business applications and processes (e.g., key management,
web application firewalls, ICT vulnerability and risk management);
•
network and cloud security: platforms to protect the network from external and internal threats (e.g.,
FW, IPS, IDS, Anti DDoS); platforms for authentication, authorization and network element accounting
(AAA) and remote access solutions (VPN, ZTNA);
•
security monitoring and management: platforms for log management, monitoring, analysis and
management of security events (e.g. SIEM, Security Log Analytics, Log Management), Risk
Management, Cyber Threat Intelligence, Vulnerability Assessment etc.;
•
endpoint security: solutions to protect mobile devices, PCs and servers (e.g. EPP, XDR, Web Proxy,
Antispam).
In addition to these activities are those needed to ensure:
•
efficient, reliable, and secure operation of security platforms and applications, includes delivery,
installation, configuration, continuous tuning, performance monitoring, early detection of anomalies,
troubleshooting, update management, and end-user support;
•
Digital Identity management, which includes configuration, centralized management and periodic
verification of accounts for network and ICT resources, in accordance with applicable regulations and
policies (e.g., Legislative Decree 196/03, Resolution 152/02/CONS, Regulation (EU) 2016/679 - GDPR).
■
Security Monitoring and Incident Management: the activities ensure continuous monitoring of IT
infrastructure and business systems to detect suspicious behavior, vulnerabilities, emerging threats, and
abnormal activity, using real-time network monitoring tools that collect and analyze useful information,
identify intrusions or cyber attacks, and respond in a timely manner. Activities are overseen by the Security
Operations Center (SOC), a team of IT security experts who constantly monitor network security, 24/7. In
parallel, Incident Management manages and resolves security incidents to minimize damage and prevent
recurrence. These processes, which conform to ISO/IEC 27001:2022 and ISO/IEC 27035 standards, are
divided into four sub-processes: 1. event identification; 2. classification; 3. analysis and technical
management; 4. follow-up. Measures are repeated and continuous throughout the year, preventing cyber
security risks and continuously improving processes.
Overall, the annual expenditure for 2024 for Cyber Security activities directly overseen by the corporate
function stands, net of those directly addressed by the other technical lines for specific vertical actions, at
about €30,000k in CapEx and €10,000k in OpEx.
TIM S.A.
The company seeks to ensure customer cybersecurity by implementing policies, monitoring systems, training
employees and adopting advanced technologies to prevent, detect and respond to incidents. Cyber attacks,
mapped in the enterprise risk matrix, can cause damage to systems, unavailability of services, and infiltration
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of malware. Since 2022, the company has been ISO 27001 certified, the international standard for information
security management, which attests to how it manages the ICT risks, prevents information leaks and cyber
attacks, monitors and responds to security incidents, and implements new cybersecurity solutions. Therefore,
we have a committee dedicated to satisfying security controls in internal and external audits of our operations.
The company also monitors and manages “data holders” in addition, to ensure a better experience for
customers in handling their personal data. In 2024, more than 600 requests were received from the data
holder mainly related to: revocations of consent; Information on data sharing; data deletion request.
2.
Personal safety of consumers and/or end-users
Consumer safety is a top priority for the TIM Group. In fact, risks relating to cybercrime, cyberbullying and
inappropriate content can affect user security and business reputation. In this regard, the Company responds
with:
■
Cybersecurity Awareness solutions and programs for safe and responsible browsing;
■
collaboration with institutions and public bodies to raise awareness among companies and citizens of
digital risks and advanced AI-based Threat Detection systems so as to protect the digital ecosystem;
■
solutions and services geared toward the online safety of consumers, including minors that include: child
protection tools that can be activated on fixed or mobile connections; security services that protect against
cyber attacks such as malware and phishing; parental control functions.
3.
Social inclusion of consumers and/or end users
To lead the country’s technological transformation and ensure the social and digital inclusion of families,
businesses and institutions, the TIM Group develops and offers affordable services and advanced technology
solutions in Connectivity, Cloud, IoT, and Cybersecurity.
For families, TIM offers:
■
connectivity solutions based on Fixed Wireless Access (FWA) Technology, including with 5G coverage, to
provide stable, high-speed Internet access even in areas without physical cabling or underserved by fiber,
including rural and suburban settings, supporting the digital inclusion of families;
■
digital identity tools such as PEC, digital signature and SPID facilitate access to public, health and financial
digital services, simplifying use for users with difficulties in providing physical documents or in-person
identification, while ensuring greater protection of personal data and security of online transactions;
■
subsidized prices for customers with disabilities on voice and internet offerings (in compliance with
Resolution 290/21/CONS) and for customers with low income on voice offerings (in compliance with
Universal Service ex Resolution 258/18/CONS) by extending on our initiative the facilitation also to internet
offerings.
For large enterprises and public administrations, TIM Enterprise offers advanced technology solutions in
Cloud, IoT, Cybersecurity that address the needs of businesses and institutions, helping to mitigate the risks
and negative impacts associated with digital transformation, and enhancing opportunities for sustainable and
inclusive growth. TIM Enterprise adopts a dedicated organizational model with the Group’s digital factories,
such as Noovle for Cloud, Olivetti for IoT, Telsy for Cybersecurity, and Trust Technologies for Digital Identity,
ensuring a direct and personalized relationship with customers. Below is a summary of the main strands of
offerings:
■
Cloud Offerings: TIM Enterprise’s Cloud solutions reduce operational risks by ensuring integrity, availability,
protection and confidentiality of corporate data, while also offering regulatory compliance (GDPR).
Integrated with digital identity services such as PEC, digital signature and SPID, the solutions simplify
access to public and private services and support inclusive and sustainable work models through smart
working and digital collaboration platforms. Integration with next-generation networks such as fiber and
5G offers higher speed and lower latency for Cloud applications, creating innovative digital ecosystems in
areas such as smart industry, digital health, and smart infrastructure management.
Finally, the Cloud offering supports the adoption of innovative technologies such as Artificial Intelligence,
transforming business operations, and improving customer interaction. Below are some cloud-based
solutions:
•
Digital School is the solution that promotes digital education for schools, including in remote areas,
which includes access to fast connections via fiber optics and 5G, use of platforms for innovative
teaching, provision of digital devices and cybersecurity services for safe use of technology. The offering
promotes social inclusion as it is also designed to support students with disabilities by offering
accessibility tools such as voice readers, automatic subtitles, and intuitive interfaces.
•
AI Customer Assistant is the solution that provides an AI-based virtual assistant and automates
repetitive tasks, improving operational efficiency and allowing employees to focus on strategic tasks.
Available 24/7, the assistant simultaneously manages and personalizes interactions on different
communication channels (chat, email, phone), improving customer experience and satisfaction. It also
collects valuable data to improve products, services, and marketing strategies.
■
IOT offers: IoT technology enables real-time monitoring of critical infrastructure, machinery, and networks,
reducing the risk of failure, sabotage, and cyber attacks. The expansion of the 5G network and fiber optics
enables such technology and enhances it, offering greater real-time data processing capacity and a more
secure interconnection between devices and infrastructure. TIM Enterprise offers advanced monitoring
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systems, predictive maintenance, physical security solutions, and smart land platforms for monitoring
environmental risks that optimize energy, water, and reduce waste.
In addition, the integration of IoT platforms with AI and Big Data offers applications that improve the
quality of life in communities and government services through smart city, smart land, smart mobility, and
smart agriculture solutions that promote equitable and sustainable digitalization, and reduce the social
divide.
Innovative IoT projects with 5G and Virtual Reality also aim to enhance the country’s cultural and artistic
heritage. Here are some examples:
•
VisitAR Bologna app offers an immersive and interactive experience through augmented reality,
guiding visitors to discover places related to Guglielmo Marconi and the city of Bologna. The app
enhances and personalizes the visitor experience, offering personalized and interactive content,
providing stable connectivity, while helping to valorize the city’s historical and musical heritage.
•
Taobuk 2024. TIM is a partner of the international festival in Taormina, which celebrates the meeting of
literature, art, science, and technology. TIM’s contribution aims to highlight how a smart city can also
be a place that preserves beauty and culture, creating new opportunities for Italy’s artistic and cultural
heritage through digital innovation. During the event, visitors were able to enjoy an immersive
experience made possible by an eXtended Reality platform combining the technologies of Cloud,
Artificial Intelligence, and 5G, and Virtual Reality viewers, discovering Taormina’s iconic places,
accompanied by the reading of texts from famous works.
■
Cybersecurity offerings. TIM Enterprise’s cybersecurity solutions protect Italian companies from cyber
risks, ensuring a secure and reliable digital environment. Thanks to the expertise of Telsy, the TIM Group’s
center of excellence with more than 200 certified experts, the portfolio of offerings includes: Threat
Intelligence, Incident Response, and Business Continuity solutions that identify and prevent threats, ensure
rapid recovery times, and reduce the risk of disruptions; Data Protection and Compliance solutions that
provide advanced encryption, secure access management, and regulatory compliance (e.g., GDPR);
Cybersecurity Awareness solutions, to counter risks related to cybercrime, cyberbullying, and inappropriate
content. TIM Enterprise ensures that these services are secure, accessible to all, and integrated with
cybersecurity technologies to protect identities and online transactions. In 2024, TIM Enterprise took
significant steps to spread the culture of cybersecurity and maximize the accessibility and adoption of
these services.
Key Cybersecurity actions during 2024 reflect TIM Enterprise’s commitment to spreading a culture of
cybersecurity:
•
NIS2 (Network and Information System Directive). TIM Enterprise, in collaboration with Telsy,
supports companies and public administration in compliance with the NIS2 Directive, which aims to
strengthen the security of networks and information systems. Initiatives include: the “Cyber Risk
Evaluation & Management” offering; organizing roadshows with Confindustria in various Italian cities
to offer practical insights into technological solutions for regulatory compliance; drafting a white paper
to offer practical guidance for companies and the public administration, illustrating the technology
solutions needed to achieve regulatory compliance;
•
TIM Guardian is an IT security solution for small and medium-sized businesses and public
administrations, designed to protect Mobile, Fixed, MPLS and SDWAN connectivity without the need
for additional software or equipment. Using artificial intelligence-based controls, the solution protects
customer privacy and mitigates Cyber threats, ensuring safe browsing. As of December 2024, 152,785
mobile lines and 20,172 fixed lines have been activated on this offering;
•
Check & Support is a standard package for SMBs, small municipalities, and schools, offering
operational support through Telsy in case of an attack, insurance for legal fees, and a tool to identify
security problems. In 2024, 273 customers adopted this solution;
•
Telsy skills is an offering that helps companies train their employees and monitor awareness levels to
prevent cyber solicitations. More than 50 companies have adopted this offering, involving more than
10,000 employees in the training.
■
Connectivity: TIM Enterprise offers high-performance, flexible, and reliable fixed and mobile connectivity
services that support businesses and Public Administration in the digital transition with nationwide
coverage. The offering is distinguished by the customization of services, with scalable options and clear
pricing packages that optimize costs. One of TIM Enterprise’s priorities is to ensure continuity of service.
The SD-WAN offering optimizes and monitors network performance in real time, enabling rapid recovery in
case of failures, and improving the reliability of connections between business locations. TIM Enterprise
also promotes digital inclusion with solutions such as FWA technology, which offers high-speed Internet
services even in areas underserved by fiber, enabling small and medium-sized businesses, schools, and
other entities to access modern, high-performance connectivity.
TIM S.A.
In Brazil, TIM S.A. is part of the “Conectividade em Escolas Rurais” Program, sponsored by Anatel Agência
Nacional de Telecomunicações, the Brazilian government agency responsible for regulating and supervising
the telecommunications sector, which aims to ensure coverage of rural areas in the country, including public
schools. TIM S.A. also positively impacts connectivity-based rural productivity through the “Rural connectivity
and digital inclusion” program. Currently, more than 20 million hectares are covered by 4G and more than 42.4
million hectares by NB-IoT, impacting more than 1.9 million people in rural areas.
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[30], [MDR-A, 68 d], [31 a, b, d]: In relation to consumers and end users:
■
to mitigate the negative impact "Digital illiteracy widens socio-economic gaps and does not allow full
participation of customers in the economy," in Domestic BU, TIM offers voice and internet offers at
subsidized prices to low-income customers, in compliance with Resolution 290/21/CONS.
In Brazil, TIM S.A. invests in remote areas to boost the economic and social development of these regions
in infrastructure expansion. TIM S.A., in fact, is the first operator to reach a 100% nationwide presence with
2G, 3G or 4G technologies. Specifically, 4G will serve all 5,570 Brazilian municipalities from December 2023.
In addition, it has been a pioneer in the activation of 5G networks in the country, a segment in which it has
been the coverage leader since 2023. TIM S.A. has a Conduct Adjustment Agreement with Anatel, with
which it is committed to expanding mobile broadband technology to around 350 municipalities numbering
fewer than 30,000 inhabitants (target already achieved).
In general, the Company monitors the effectiveness of its actions by ensuring a connection service in the
most remote areas where it operates so that consumers and end users are not socially and economically
excluded.
■
To mitigate the negative impact, "The inability of the company or supply chain to conduct responsible
business that meets ethical social demands and transparent business practices can limit competition and
informedconsumer choices," the Company has policies and procedures in place to ensure transparency of
services offered, respect for human resources and consumer protection.
The company verifies the application of and compliance with the policies cited in ESRS S4 MDR-P,
datapoint 65 a in all processes.
■
With reference to the impact "Potential cybersecurity threats may result in the leakage of sensitive data of
customers and/or employees" in Domestic BU, only one incident with medium impact was reported,
caused by a DDOS (Distributed Denial of Service) type attack characterized by unusual attack methods,
which was promptly mitigated by the deployment of appropriate countermeasures, which were then made
structural. The incidents worthy of reporting, which still remain with low impact, were two (caused by
process or system vulnerabilities) out of a casement of 8265, while the others had no impact. To mitigate
this impact, since 2003, TIM has implemented a comprehensive "Privacy Operating Model" to ensure the
proper application of data protection regulations at the Group level. This model, developed on the principle
of privacy-by-design, is constantly being improved and is based on:
•
transposing legislation and the indications of the Privacy Authority;
•
the assigning of roles and responsibilities for personal data processing obligations;
•
the drafting of disclosures for various categories of stakeholders (e.g., employees, customers);
•
the assessment of the risk associated with processing activities, recorded in the appropriate Registries
(pursuant to the GDPR);
•
the implementing of appropriate technical and organizational measures to ensure a level of security
appropriate to the risks.
TIM monitors and evaluates the effectiveness of the Privacy Operating Model through the figure of the
Data Protection Officer (DPO) with advisory, training, informational and supervisory functions regarding the
application of privacy regulations, who informs and advises the organization and its employees about data
protection obligations under the GDPR and monitors the organization's compliance with the Regulations
and internal data protection policies and procedures.
In addition, another method of evaluating the effectiveness of the actions implemented relate to
measuring customer satisfaction and reducing security incidents.
In Brazil, TIM S.A., to prevent adverse impacts related to potential cybersecurity threats, seeks to
continuously protect the cybersecurity of its customers by implementing policies, monitoring systems and
employee training, and adopting advanced technologies, to prevent, detect and respond to incidents. In
this regard, TIM S.A. has:
•
adopted and reinforced measures such as hiring a digital tool for the assistance service and the
management of the Data Controller’s Rights, thus providing a better customer experience in exercising
their rights;
•
continuously and constantly implemented the processes and actions under the ISO 27001 (Information
security management system) certification obtained in 2022;
•
created the Privacy Center on the institutional website;
•
created an internal security flow for incidents or personal data leaks.
In Brazil, TIM S.A. maintains an open dialogue with its customers by means of research and the
declarations
registered
with
consumer
protection
agencies,
such
as
Procons,
the
website
Consumidor.gov.br, the Special Civil Courts, and Anatel. In doing so, it constantly tracks its actions and
customer needs. Anatel also evaluates operators' services annually by way of a survey on satisfaction
levels and the perceived quality of telecommunications services.
The company also has a dedicated team tracking the transaction NPS for various customer journeys, both
in the mobile and Ultra Fibra segments. The team develops plans to improve the experience and
satisfaction with services, together with the different business areas.
TIM S.A. tracks the service and the management of Data Controllers' Rights, thus offering customers a
better experience in exercising their rights. Due in part to the aforementioned methods of evaluating
performance effectiveness, no complaints about privacy violations and/or loss of client data were brought
to the attention of the DPO.
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[31 c]: With respect to the goal of making a positive contribution to improving social outcomes for consumers,
within the Italian territory, all the actions implemented by the company have been extensively described and
refer to ESRS S4 datapoint 31, letters a, b, d.
[32 a, b, c ]: To mitigate negative impact "Potential cybersecurity threats may result in leakage of sensitive
customer and/or employee data" see actions for BU Domestic and TIM S.A extensively described in ESRS S4
datapoint 30.
[33 a]: In relation to material risks relating to online security (such as cybercrime and cyberbullying),
cyberattacks and sabotage of physical infrastructure, and unauthorized access to customers’ personal data,
TIM applies its wide-ranging Cyber Security process, which safeguards logical security and protects IT and
infrastructure resources, as noted in MDR-A in the section “Information-related impacts for consumers and/or
end-users”.
The goal is to avoid incidents that could compromise customers’ cybersecurity, with consequences in terms of
loss of trust in the company. The effectiveness of the cybersecurity process is evaluated through constant
monitoring of individual process steps and results in risk management. Risks related to cybersecurity and
sabotage of physical infrastructure are also monitored within the Enterprise Risk Management (ERM) model
adopted by the TIM Group, which takes into account the reference context.
[33 b]: On the relevant opportunity “The development of new business models using advanced digital
technologies (e.g., 5G, AI) can improve the company’s operational efficiency, with consequences for economic
and financial flows and benefits for consumers”, the TIM Group adopts advanced technologies such as 5G and
AI to improve operational efficiency and generate benefits for consumers. In the short run, these technologies
improve resource management and generate value for the enterprise and consumers. In the long run, they
foster the development of new business models, the acquisition of new market segments and the
consolidation of consumer relationships.
5G technology offers numerous opportunities for the development of new business models in various sectors
and is the basis for the many solutions offered by TIM. 5G is being used in the application of the Internet of
Things to smart cities, telemedicine, automation and industry 4.0, augmented and virtual reality, and remote
working. These models help to improve the quality of life for consumers, make core services more accessible
and personalized, while providing companies with innovation and reduced operating costs.
In these models, IoT technology is increasingly integrated with AI to improve operational efficiency and
customer experience. For example, the TIM Smart Home offering dedicated to families offers home
automation solutions that integrate IoT devices with smart applications to optimize energy consumption,
monitor security, and automate different functions in the home. In TIM Enterprise, most of the solutions
dedicated to companies use AI applications.
AI also offers opportunities within the company, thanks to a growing number of areas in which it is being
applied as below:
■
Optimization of Customer Service through: analysis of customer-operator conversations using speech
recording algorithms to better understand customer needs and propose effective solutions; Use of virtual
assistants available 24/7 to customize answers and solve problems in real time; Implementation of
chatbots to provide concise answers on procedures and bid content to front-end and back-office operators;
application of generative AI to improve understanding of customer dialogues and provide relevant and
personalized responses.
■
Predictive analytics: AI can analyze customer data to predict trends and behaviors thus enabling
personalization of offers and services.
■
Network infrastructure management: AI can optimize infrastructure management by monitoring services
in real time that detect malfunctions or congestion, allowing timely actions and reducing downtime.
■
IT Security: AI can improve the security of IT networks and systems to identify anomalous behavior and
potential threats, helping to prevent cyber attacks.
■
Simplification of internal processes: the use of algorithms can automate internal operational processes,
reducing the workload and increasing the overall efficiency of business activities.
[34]: Through constant monitoring of reporting channels and Customer Care activities dedicated to technical
and administrative customer support, TIM acknowledges, analyzes the reports received. In a preventive form,
all actions, processes, and actions that the company puts in place are aimed at avoiding any possible negative
effects on consumers and/or end users. In addition, through the broader Cyber Security process, the company
ensures responsible and secure management of consumer data and ensures that its marketing and sales
practices are designed to prevent negative impacts.
[35]: As far as the TIM Group companies in Italy are concerned, at the date of publication of this sustainability
statement, the TIM Group had received no reports for 2024 relating to serious human rights’ issues and
incidents related to consumers and end users.
[37]: To manage material impacts on consumers and end users, different business functions develop Business
Plans, define actions and dedicate associated budgets, activating dedicated working groups where necessary
to finalize the material activities.
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S4-Metrics and targets
Disclosure Requirement S4-5 – Targets related to managing material negative
impacts, advancing positive impacts, and managing material risks and opportunities
[MDR-T 80 a, b, c, d, e, f, i]: TIM, in the 2025-27 Plan, has identified the following specific targets for the
Domestic BU perimeter:
1.
Advanced digital solutions +17% YoY in the period 2025-27
2.
Digital Identity Services +30% CAGR by 2025
Through these long-term targets, the progress of which is monitored periodically, the Group confirms its
commitment to addressing the challenges and opportunities associated with technological transformation.
Targets are expressed as relative goals relative to an initial reference point.
Specifically, target 1 refers to revenues from sales of IoT, Cloud & Security services and is represented as a YoY
percentage increase starting from the base year 2024. Consolidated TIM Enterprise revenues are considered,
which also include Olivetti, Telsy, and Noovle net of inter-company items. The target being constructed as a %
YoY increase, already presents de facto intermediate targets.
The target did not change in terms of slopes compared to the previous year, also as a result of changes in the
organizational scope, as it relates to the company’s core activities. An alignment was made in terms of the
mode of summarization, moving from CAGR to YoY. The results confirm a 26% increase in revenues at the end
of 2024 compared to 2023 with an over performance of Cybersecurity solutions revenues that recorded +50%,
while cloud revenues reached +22%.
Target 2 refers to PEC, SPID, and Digital Signature digital services and is expressed as the percentage growth of
active services as from the base year 2022 (CAGR). The target, specifically, is given by the sum of the number
of active PEC boxes, the number of active SPID digital identities, and the number of Digital Signature
certificates issued. There are no intermediate targets for this target.
This target also did not change from the previous year as it focused on core activities of the company. By year-
end 2024 there was an increase of 35% (CAGR 2023-24). The growth is almost entirely related to digital
signatures, which account for 97% of total services.
These targets are in line with the Sustainable Development Goals, particularly Goal no. 9 “Industry, Innovation
and Infrastructure”.
[MDR-T, 80 h]: Consumers and/or end users were not involved in the target-setting process.
[MDR-T, 80 j]: Plan targets are monitored periodically by the Chief Enterprise and Innovative Solutions Office.
Progress is in line with what was initially planned , and the company is taking behaviors and actions that will
further the achievement of the goal.
[41], [MDR-T, 81 b i, ii]: In order to monitor and track the effectiveness of its policies and actions put in place
with regard to consumer and end-user IROs, the TIM Group adopts monitoring processes in accordance with
standards and best practices, based on performance measurement systems. Specifically, the Company:
■
in terms of aspects relating to network threats, the Group tracks and mitigates these threats;
■
in terms of aspects relating to consumers’ personal security, the Group tracks risks related to cybercrime,
cyberbullying and inappropriate content;
■
in terms of aspects relating to the social inclusion of consumers, the Group tracks the ability of consumers
to access the benefits of modern and high-performance connectivity, even in challenging environments.
[41 a, b, c]: TIM has undertaken various initiatives to set and track revenue targets in the Cloud, IoT, Security
and Digital Identity Services sectors, which have required the direct involvement of consumers and/or end
users. In particular, as part of the double materiality process, end consumers have identified issues relating to
cybersecurity and digital inclusion as material. This process required consumer involvement through
questionnaires and/or interviews, and their preferences were critical in defining the relevant IROs but also the
targets that the Domestic BU sets for itself. Thanks to the ongoing tracking of its own performance and the
“Customer Satisfaction Index”, TIM has been able to better contextualize the significant growth recorded in
Cloud, IoT and Security services revenues and in Digital Identity services revenues and to guarantee
continuous improvement in its performance.
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4.
GOVERNANCE DISCLOSURES
Business conduct [ESRS G1]
Impact, risk, and opportunity management
Disclosure Requirement G1-1 – Business conduct policies and corporate culture
[7], [MDR-P, 65 a]: IROs that emerged as significant from the analysis of dual relevance to the topic of
"Business Conduct" are addressed within the "Code of Ethics and Conduct," the "231 Organizational Model,"
the "Anti-Corruption Policy," the "Tax Strategy," the "Report on TIM Group's Remuneration Policy and
Compensation Paid," and the "TIM Group Artificial Intelligence Guidelines". All documents are linked to the
following material impacts, risks and opportunities that emerged from the double materiality assessment:
Positive impacts
■
"Involving stakeholders in strategic initiatives helps create long-term value for customers and the supply
chain";
■
"Incentive mechanisms that encourage employees to adopt sustainable practices promote a culture of
responsibility towards environmental and social impact".
Negative impact
■
"The inability of the company or supply chain to conduct a responsible business, which responds to ethical
social demands and transparent business practices, may limit competition and consumers’ informed
choices".
Risks
■
"Potential non-compliance with anti-bribery regulations in the conduct of business increases the likelihood of
legal liability and financial sanctions, as well as reputational damage";
■
"The inability to effectively involve suppliers in the reduction of emissions can cause the failure to achieve the
climate objectives, with an impact on economic and financial results as well as reputational damage";
■
"Failure to adapt to regulatory developments in the use of generative AI can cause reputational damage and
sanctions and can harm the economic sustainability of the company".
Opportunities
■
"Strong ethical practices and transparent codes of conduct can improve brand reputation, attract ethical
investors, and improve customer relationships";
■
"Voluntary compliance with the Revenue Agency can bring benefits in terms of reputation and operational
management".
The “Code of Ethics and Conduct” guides TIM's actions in carrying out its business, in the belief that a
common vision of ethics in the daily conduct of business is the essential prerequisite for responsible and
sustainable growth. Specifically, the document includes:
■
the distinguishing values of the Group's culture;
■
the rules of ethical behavior for people in the Group and the guidelines for the conduct to be pursued in
dealings with third parties;
■
the objectives and good practices relating to sustainability and social responsibility, in order to conduct
business activities in a way that safeguards the various aspects of the environmental, social and
governance-related affairs of the Group;
■
the methods of complying with the Code through the description of the commitment of corporate boards
and management teams, as well as the approach to managing violations, whistleblowing, and the
methods of disseminating and adopting of the document.
In relation to the IRO material for the topic “Business Conduct”, TIM emphasizes its commitment to:
■
managing relationships with all Third Parties in a responsible, transparent and correct manner by
condemning the use of any illegal or incorrect behavior and constantly promoting compliance with
applicable legislation;
■
conducting activities in accordance with a “zero tolerance” to corruption by adopting the voluntary UNI ISO
37001 “Anti-bribery Management Systems” standard;
■
believing in free and fair competition in the interests of all market operators, consumers and stakeholders
in general, by avoiding prohibited, collusive, restrictive and abusive behavior and ensuring compliance with
relevant regulations;
■
not allowing the pursuit of personal or third party interests to the detriment of business interests by asking
the Group’s personnel to report the onset of potential conflict situations;
■
selecting our suppliers in accordance with principles of fairness and impartiality and on the basis of rules
established to verify their professionalism, integrity and sustainability, in line with applicable regulations;
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■
complying with applicable regulations on Artificial Intelligence and in complying with the best guidelines on
the subject at national and international levels, fully aware that using this technology undoubtedly
represents a factor of development and innovation, but at the same time may have ethical implications if
not regulated.
The “231 Organizational Model” aims to prevent crimes being committed in the interests of the undertaking
which may entail administrative liability. The model has the following purposes:
■
to prevent and limit the risks associated with business activities, with particular regard to any illegal
conduct that may result in liability on the part of the Company and consequent sanctions;
■
to raise awareness of those operating in the name and on behalf of the Company in high-risk activities that
the committing any unlawful conduct may result in criminal and administrative sanctions against them
and the Company;
■
to combat illegal behavior of any kind and regardless of purpose, since they violate applicable legislation
laws are in any case contrary to the ethical principles to which the Company adheres;
■
to raise awareness among the Company's employees and applicable third parties of the behavior required
under the 231 Organizational Model to prevent the risk of committing crimes.
In accordance with best practice, TIM's 231 Organizational Model has been set out from a cross-compliance
perspective, taking into account the adoption of the specific control models developed by the Company.
The “Anti-Corruption Policy” has the following main objectives:
■
to manage the risk of corruption in accordance with a “zero tolerance” approach;
■
to guarantee compliance with the anti-corruption laws;
■
to protect the Company from the harmful consequences of non-compliance with the anti-bribery laws
applicable to the TIM Group, including in terms of reputation and image;
■
to encourage the use of instruments for the reporting of acts of Corruption, including those of third parties
doing business with the Company;
■
to strengthen awareness of the rules in order to ensure the active, responsible involvement of all
addressees in the pursuit of the Anti-corruption Management System's objectives.
The “Tax Strategy” policy lays down the general objectives and the direction adopted by TIM in managing
taxation. The Strategy has the following purposes:
■
to disseminate the values and codes of conduct in tax matters to top management and to all the
employees involved;
■
to develop and promote ongoing relationships with the Tax Authorities in a professional, transparent and
timely manner;
■
to set out TIM’s tax risk tolerance (propensity for tax risk) with a view to promptly resolving potential
disputes while at the same time reserving the right not to adhere to the positions of the Tax Authorities
when the Company's grounds appear to be adequately supported;
■
to set out appropriate control and monitoring tools to achieve the selected level of risk;
■
to operate in compliance with the tax laws and regulations of the countries in which it is present by
managing the monitoring of legislative developments, application management, information and in-house
training;
■
to continuously monitor business activities and processes so as to ensure compliance with the standards
required by current tax regulations by means of involving all bodies and functions responsible for internal
and external controls;
■
to adapt – based on the needs and criteria of rationality and appropriateness –) the organizational
structures, business systems and processes affected by legislative changes.
The TIM Group’s Report on the remuneration policy and compensation paid supports the achievement of the
objectives set out in the Strategic Plan and a focus on the different business sectors, promoting the alignment
of management interests with the goals of creating value for shareholders and a sustainable success for the
company in the long term. The remuneration structure provides for a balance between the monetary
component of remuneration (fixed and variable remuneration) and the enhancement of the non-monetary
component (benefits and welfare), with a view to pursuing sustainable results over time.
The inclusion of ESG components in the incentive system is aimed at promoting sustainable behavior within
the undertaking and aligning management interests with the Plan objectives.
The “Artificial Intelligence Guidelines” define the regulatory framework for the development, use and
purchase of Artificial Intelligence Systems by TIM. This ensures that ethical principles translate into day-to-day
operations in the interest of the Company and all its Stakeholders.
In particular, the Guidelines lay down:
■
the ethical principles giving rise to the development, use and purchase of AI Systems within the TIM Group;
■
the external and internal regulatory framework relating to AI Systems;
■
the organizational and governance structure for managing AI issues, which sets out behavioral guidelines
in relation to the development, use and purchase of AI Systems.
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[7], [MDR-P, 65 b]: The Code of Ethics and Conduct applies to all people in the Group, with particular reference
to the members of the Corporate Boards, management, employees of all Group Companies, external
collaborators, and, where required by the company's procedural system, to third parties in business
relationships with the Group.
TIM's 231 Organizational Model applies to: personnel holding representative, administrative and management
functions within the Company; members of the Corporate, Management and Supervisory Bodies; all
employees; and all third parties acting in the name and on behalf of the Company. The Model is to be
considered as a guideline to which the Subsidiaries adhere in structuring their own Organization, Management
and Control Model, without prejudice to the specifics of the activities of interest that will necessarily have to be
represented and compliance with the applicable regulations on the liability, including criminal liability, of legal
persons and companies in the countries where they are based or operate, as well as a suitable internal control
and risk management system that provides for appropriate safeguards to verify its practical implementation.
The Anti-Corruption Policy applies to TIM S.p.A. and to members of the corporate bodies, employees and
external staff engaging in various capacities with the Company. The Policy applies to Subsidiaries of the TIM
Group and to the TIM Foundation: listed domestic and foreign companies and companies certified in
accordance with UNI EN ISO 37001 may transpose the Policy by defining their own policies in compliance with
the principles set out therein.
The Tax Strategy Policy applies to all companies in the TIM Group; Brazil has adopted its own policy based on
the contents of the Group's policy.
The Report on remuneration policy and remuneration paid applies to the TIM Group.
The TIM Group's Artificial Intelligence Guidelines apply to: the members of the Corporate Bodies; management;
employees of all Group companies; external workers; and, where required by the company's procedures, third
parties in business relationships with the Group.
[7], [MDR-P, 65 c]: The adoption of the Code of Conduct was decided by resolution of the TIM Board of
Directors on March 15, 2023. A periodic review of the Code is also ensured to implement any necessary
updates.
The adoption of the 231 Organizational Model was also ordered by resolution of the Group's Board of Directors,
after receiving the opinion of the Supervisory Body.
The Group’s Anti-Corruption Policy was approved by the Board of Directors, after a prior review by the Control
and Risks Committee. Within the company organization, the Compliance Department is in charge of
overseeing the implementation and monitoring of the Anti-Bribery Management System and, more in general,
the compliance of the Anti-Bribery Management System (ABMS) with ISO 37001:2016 requirements.
The Tax Strategy is approved by the Group’s Board of Directors, following preliminary assessment by the
Control and Risk Committee, and is promptly updated in the event of changes at the strategic and/or
operational level.
The TIM Group’s Report on the compensation policy and compensation paid was prepared by resolution of
TIM’s Board of Directors on March 2, 2022, based on the findings of the Nomination and Remuneration
Committee.
The TIM Group's Artificial Intelligence Guidelines have been approved by the Board of Directors, which ensures
that they are in line with TIM's strategy.
[7], [MDR-P, 65 d]: The Code of Ethics and Conduct is in line with the United Nations Global Compact with
which TIM complies, while TIM gives effect to Italian Legislative Decree no. 231/2001 by means of the
Organizational Model 231.
With the Anti-Corruption Policy, TIM undertakes to comply with the ISO 37001:2016 “Anti-Bribery Management
Systems” standard published on October 15, 2016 by the International Organization for Standardization.
The Tax Strategy document makes reference to the OECD report “Co-operative Compliance - A Framework:
From Enhanced Relationship to Co-operative Compliance”; OECD GUIDELINES “Building better tax control
frameworks”.
The TIM Group”s Guidelines on Artificial Intelligence take into account the following external regulations:
•
Charter of Fundamental Rights of the European Union;
•
Regulation (EU) 2024/1689 of the European Parliament and of the Council of June 13, 2024 laying down
harmonized rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No
167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/
EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act - AI Act) (Text with EEA relevance);
•
European Commission Guideline of November 25, 2021 Ethics By Design and Ethics of Use Approaches
for Artificial Intelligence;
•
Regulation (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016 on the
protection of natural persons with regard to the processing of personal data and on the free
movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation -
GDPR);
•
Directive 2002/58/EC of the European Parliament and of the Council of July 12, 2002 concerning the
processing of personal data and the protection of privacy (e-Privacy Directive);
•
UNESCO “Recommendation on the Ethics of Artificial Intelligence”;
•
GSMA “The AI Ethics Playbook Implementing ethical principles into everyday business”;
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•
Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and
the Rule of Law.
[7], [MDR-P, 65 e]: The Group Policies take into account aspects identified as fundamental and priority by
analyses conducted internally and with external stakeholders. These aspects are strongly linked to the
operations of the TIM Group Companies.
[7], [MDR-P, 65 f]: To ensure the contents of the Policies are shared, the TIM Group makes documents available
to its stakeholders on its corporate intranet and on the Group's company website, in compliance with “least
privilege” and “need to know” principles. Where appropriate, for relations with third parties, specific
contractual clauses will be added relating to the acceptance and/or compliance with some of the policies, such
as the Code of Ethics.
[9]: Issues relating to business conduct are periodically discussed and reviewed by the Group’s Board of
Directors and Supervisory Bodies in order to provide appropriate guidance. With this in mind, all policies
mentioned in this topic – namely the Code of Ethics and Conduct, the 231 Organizational Model, the Anti-
Corruption Policy, the Tax Strategy Policy and the TIM Group’s Report on the remuneration policy and
compensation paid – have been established by specific resolution of the Board of Directors.
The Group also promotes its business culture among stakeholders by publishing its policies on the corporate
website and on the Group’s intranet site and by encouraging specific sharing and training instances.
[10 a]: TIM has a Whistleblowing Portal through which all relevant stakeholders can report concerns regarding
conduct that is illegal or in breach of the Code Of Business Conduct. Specifically, the following may submit
whistleblowing reports: employees, former employees and candidates for employment; partners; customers;
partners; suppliers (including contractors/subcontractors); self-employed workers or those in a collaborative
relationship with the Group; freelancers; consultants; agents and intermediaries; volunteers and trainees (paid
or unpaid); and anyone who has a legitimate interest in the Group's business.
[10 c]: The TIM Group makes reporting channels available to allow you to transmit, even anonymously, a report
of your own or a third party, after having read the "Privacy Policy" published on the "Whistleblowing" page. On
the above-mentioned sites and intranet pages dedicated to Whistleblowing, information is available on the
conditions for making a Report. A FAQ section is also available with answers to the most frequently asked
questions useful to ensure Reports are sent correctly.
In Italy, a report may be sent via:
■
the Whistleblowing Portal, also present in TIM S.A., suitable for guaranteeing the confidentiality of the
identity of the whistleblower through the use of secure protocols and encryption tools. After entering
information, the Portal provides a Unique Identifier Code, which can then be used to check the processing
status and to send and receive communications (even anonymously);
■
voicemail at the Toll-Free Number 800664411;
■
ordinary mail to the Supervisory Body of TIM or the TIM Group company concerned, addressed to the
company's registered office. Whoever receives a report, in any form (written or oral), must send it
promptly, and in any case within 7 days of receipt, through the above-mentioned channels to the
Supervisory Body concerned, also through the TIM Audit Department, informing the reporting person at
the same time (if known) that the report has been sent, and guaranteeing absolute confidentiality.
[10 e]: All reports received through the Whistleblowing Portal, including those relating to cases of bribery and
corruption, are initially analyzed by the Audit Department in view of investigations potentially being instigated
under the Whistleblowing Procedure. In addition, TIM has in place an Internal Control and Risk Management
System (ICRMS) consisting of all organizational structures, rules and business procedures to ensure an effective
and effective process to identify, measure, manage and monitor primary risks, which also includes adequate
information flows aimed at facilitating the coordination of information between the various actors of the
ICRMS.
[10 g]: The TIM Group delivers specific training and information sessions to its employees to ensure adequate
dissemination of its business culture. In particular, the training touched on the following key topics:
■
Whistleblowing: employee training on using the reporting system and whistleblower protection;
■
Anti-Corruption: periodic employee training on the main regulations, the Group's Anti-Corruption Policy
and related implementation procedures to enhance knowledge and raise awareness of the matter;
■
Corporate governance and Code of Ethics: training delivered to all employees with the aims of
disseminating the values and principles laid down in the Code of Ethics and understanding their ethical and
operational responsibilities. Managers, on the other hand, follow specific pathways to strengthen ethical
leadership and responsible management.
The modes of use include dedicated training courses that take place on specific days, videos posted on the
company intranet that allow, instead, the course to be enjoyed in streaming mode, periodic newsletters. This is
complemented by day conferences on compliance and values in the Code of Ethics and Conduct and
dedicated Webinars.
[10 h]: The functions within the company that are most at risk of bribery and corruption are identified
according to a risk-based approach. Specifically, this concerns “Personnel in a Significant Position”, (i.e. figures
exposed to risk, as they are in contact with to third parties, such as public entities or private entities, other than
customers/end users of the products/services sold by TIM). Personnel in a Significant Position include:
■
first-level departmental managers;
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■
second-level departmental managers with powers of signature;
■
personnel with powers of signature, where their responsibility is enshrined in the organization chart, in
particular belonging to the following functions: Procurement & Logistics; Chief Financial Office; Chief
Human Resources & Organization Office; Judicial Authority Services and Corporate Security & Fraud
Management (Chief Public Affairs, Security and International Business Office);
■
personnel with powers of signature, even where their responsibility is not enshrined in the organization
chart, for the Chief Enterprise and Innovative Solutions Office function;
■
individuals in the corporate function who work in the area of regulation and institutional relationships and
who are mandated by the Company to maintain the relationships defined above;
Third parties that may present potential risks are divided into “Significant Relationships” (according to the
nature of the relationship) and “Significant Third Parties” (according to the characteristics of the counterparty).
Significant Relationships include relationships with public bodies, customers and suppliers, and private entities.
Significant Third Parties include beneficiaries of sponsorships/ contributions; consultants, brokers, business
partners and external workers; suppliers of goods and services; participants in extraordinary transactions
(mergers, acquisitions); partners in joint ventures; recruitment candidates (evaluated for reputation and
conflicts of interest).
Finally, TIM has identified the main business areas at risk of corruption. These include procurement,
investments, budget, sales, logistics, human resources, finance and taxation, as well as the area pertaining to
the control-governance environment in general (in particular management of gifts, representation fees, events
and sponsorships, gratuities, membership fees, relations with Institutions/Authorities, authorizations and
concessions, judicial and arbitration proceedings, occupation health and safety obligations, environmental
protection obligations, and top management operations).
In TIM S.A., the result of the annual Anti-Corruption Risk Assessment identifies the relations, third parties, roles
and activities with a medium to high level of exposure to corruption risk. In general, the assessment of the risk
of corruption depends on:
■
the type or nature of the relationship (sensitive relationships);
■
the characteristics of third parties or the activities they carry out (sensitive third parties);
■
the role played by the employee (sensitive roles);
■
the activities considered sensitive.
Following the risk assessment process, TIM S.A. has identified the following sensitive activities: agreements;
judicial, administrative, and arbitration proceedings; authorizations and licenses; relations with public officials,
institutions, authorities, trade unions and associations; receiving and/or offering goods, services and/or
invitations to events as representation fees; events; commercial and institutional sponsorships; donations to
non-profit organizations; subsidized loans and financing; purchasing of goods and services; sales of goods and
services; hiring of employees; management of employees' variable compensation incentives; health, safety
and environment; investments; business partners.
[MDR-A 68 a, b, c, e], [MDR-A, 69 a, b, c]: In implementing the aspects related to IROs that emerged from the
double materiality analysis linked to the identified policies on “business conduct”, which provide the framework
for the coherent and informed management of business activities, the Group implements actions that enable
the management of aspects related to:
1.
Business culture and active and passive bribery
2.
Management of relationships with suppliers including payment practices
The actions, applied in both Italy and Brazil, involve internal operations and the value chain and aim to ensure
transparency and reduce risks related to anti-corruption and regulatory compliance. Where available, financial
resources are also reported in terms of operating expenses (OpEx) and material capital expenses (CapEx).
These particularly include:
1.
Business culture and active and passive bribery
■
Training on Anti-corruption: the activity, which covers the policies and related implementation
procedures, is aimed at all employees of TIM S.p.A. and subsidiaries in the Domestic perimeter. Anti-
corruption policies are accessible through company portals and internal communication channels.
■
Anti-Corruption Management System (EMS): The TIM Group has adopted an Anti-Corruption
Management System aimed at preventing, detecting and managing corruption risks. This system, also
required of subsidiaries, includes due diligence activities, conflict of interest analysis, reputational audits,
and internal controls over risk processes. The implementation of the system complies with the ISO
37001:2016 standard, which provides guidance for establishing, implementing, and improving the anti-
corruption system. The system is certified for Olivetti, Telecontact Center, TI Trust Technology, TI Sparkle
and TIM S.A. It involves employees, corporate bodies, collaborators, suppliers and business partners
through audits and reputational reviews. TIM S.A. also adopts the “Integrity Program”, which establishes
rules and actions to ensure compliance with Brazilian anti-corruption legislation, preventing and mitigating
the risks of corruption and payment of bribes. For TIM S.p.A., the OpEx amounted to €178.5k.
■
231 Organizational model: TIM continuously updates its 231 Organizational Model for the prevention of
corporate crimes. Version 7.4, adopted on July 31, 2024, includes regulatory updates relating to bid rigging,
fraudulent transfers, copyright, and preventive measures. The internal control system provides for
constant monitoring through analysis of information flows covered by the 231 Model, as well as “red flag”
reports. Findings are reported directly to the Supervisory Body. The Model is adopted by TIM S.p.A. and the
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Group’s main subsidiaries, covering all corporate functions, ensuring they comply with compliance and
anti-corruption regulations. For TIM S.p.A., the OpEx amounted to €24.7k.
■
Tax Control Framework: TIM has adopted a structured tax risk management system (Tax Control
Framework) to ensure compliance with tax regulations and prevent avoidance and litigation risks. The
company takes a prudent and transparent line of interpretation, maintaining a constant dialogue with the
Italian Tax Agency to avoid interpretative uncertainties. The framework provides for internal monitoring
processes to ensure the correct application of tax regulations and minimize reputational and financial risks.
The company monitors tax activities nationwide, ensuring regulatory compliance and tax risk prevention.
The framework involves the company’s financial and administrative functions, with constant discussion
with tax authorities.
■
Tax Risk Awareness: the Tax Office function provides ongoing support to business functions involved in
financial management to ensure that every decision is aligned with the current regulatory framework,
reducing the risk of non-compliance, and improving the transparency of financial transactions.
■
Artificial Intelligence Guidelines: The company has adopted Artificial Intelligence Guidelines defining the
regulatory framework for the development, use, and procurement of Artificial Intelligence Systems by
translating ethical principles into actions in the interest of the Company and Stakeholders. Constant
monitoring of guidelines ensures regulatory compliance, with risk assessment activities and continuous
monitoring to incorporate any regulatory changes.
Regulatory tools, as well as risk assessment and monitoring activities, are also continuously carried out to
reflect any regulatory changes.
Particularly with regard to the corporate administrative responsibility, the 231 Organizational Model of TIM
S.p.A was updated and adopted by the Company's Board of Directors on July 31, 2024. This new version
incorporates regulatory changes regarding bid rigging (Law no. 137, of October 9, 2023), fraudulent transfers
(Law no. 56, of April 29, 2024), copyright (Law no. 93, of July 14, 2023), sale of industrial products bearing false
marks (Law no. 206, of December 27, 2023) and prohibitive protective measures (Law no. 17, of March 3, 2023
17).
2. Management of relationships with suppliers including payment practices
■
Joint Alliance for Corporate Social Responsibility (JAC): TIM is among the founding members of the
alliance of telecom operators to promote the application of sustainability principles along the supply chain.
In carrying out this initiative, suppliers in the highest risk classes are audited to identify any non-
compliance with the requisite standards and to define corrective action plans.
■
Supplier management
•
Payment terms. To ensure a balance between TIM’s operational needs and the economic stability of
suppliers, standard payment terms are defined within the contracts for each Merchandise Group that
take into account market criteria and business needs.
•
Reverse Factoring. TIM offers suppliers this financial option that gives them a choice of whether to
advance the collection of receivables through contracted banking institutions to avoid liquidity risks, or
to wait until the natural expiration of contract terms.
Supplier relationship management and payment management initiatives are applied within the TIM S.p.A.
perimeter. These actions are of an ongoing nature.
[MDR-A, 68 d]: With respect to the negative impact identified during the double materiality analysis, “The
inability of the company or supply chain to conduct a responsible business, which responds to ethical social
demands and transparent business practices, may limit competition and consumers’ informed choices”, the
Group has adopted an Anti-Bribery Management System (ISO 37001) that provides for due diligence of
suppliers and audits on at-risk processes. Meanwhile, the 231 Organizational Model and the Code of Ethics
ensure the monitoring of at-risk processes and the promotion of values such as transparency and compliance
in business processes.
Disclosure Requirement G1-2 - Management of relationships with suppliers
[14]: The TIM Group Product and Service Purchasing Policy governs the objectives and general principles of the
purchasing process, including the stages of payment to suppliers. Specifically, payment to suppliers occurs
after the service is completed or the products/services have been delivered. At this point, the User Business
Function records the entry of goods in the SAP system by referring to the purchase order issued to the supplier.
This entry formalizes the acceptance of the supply/performance, authorizing the supplier to issue the invoice,
and allowing payment within the terms stipulated in the contract.
It is the responsibility of the User Function to notify the supplier without delay via the supplier portal or by
email of the amount of the goods entry, to prevent the supplier from issuing invoices for amounts other than
those reported. The Accounting Operations Function within the Chief Financial Office registers the invoice and,
after checking for approval, initiates the payment process.
TIM’s business practices designed to avoid or minimize the effects of supply chain disruptions include the
following operational measures:
■
assessment about supply diversification to mitigate risks related to external factors;
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260
■
proactive supplier management, which includes continuous performance evaluation, conducting audit
plans, and establishing shared contingency plans to strengthen supply chain resilience;
■
definition of business continuity and crisis management plans to deal with any disruptions, including the
use of alternative sources of supply or temporary reorganization of operations to minimize financial and
operational impacts;
■
adoption of sustainable and responsible practices within the supply chain to reduce reputational risk and
build stable and lasting relationships with suppliers;
■
ongoing training of purchasing officers to make them aware of supply chain risks and direct them to best
management practices.
Within the Domestic BU, all suppliers operating in the geographic areas of Asia, Central and South America,
North Africa, and Eastern Europe with order amounts greater than or equal to €250k and, more generally, all
those with order amounts greater than €500k are considered to be at ESG risk. These suppliers are subjected
to an ESG a questionnaire with more than 30 questions that also includes the following certifications:
■
SA8000
■
ISO 45001 “Occupational health and safety management systems”
■
ISO 37001 “Management Systems for the Prevention of Corruption”
■
ISO 30415 “Diversity & Inclusion”
■
confidential procedure for reporting behavior that does not comply with the principles of the Code of Ethics
Access to the register requires passing a minimum threshold, which is binding for membership.
[15 a]: The TIM Group to prevent sustainability risks and impacts related to the supply chain and purchased
products and services, implements the following activities with the aim of reducing emissions aimed at
achieving climate targets:
■
encourages and engages suppliers to develop a proactive approach toward sustainable development;
■
works with TIM suppliers to continuously improve collective sustainability performance;
■
incorporates sustainability into the tender documents, ensuring that they are a proportionate part of the
evaluation criteria for contracts with a significant impact, where applicable;
■
builds and develops practical tools to increase awareness, knowledge and understanding of relevant
sustainability issues;
■
promotes solutions that allow significant reductions in greenhouse gas emissions in the supply chain;
■
works with suppliers/partners to reduce the risk of security incidents in all activities carried out with the
ultimate aim of eliminating such incidents;
■
promotes fair labor practices, including non-discrimination;
■
verifies through Audits the level of respect for human rights in the production facilities of key suppliers
located in areas with significant level of socio-environmental risk.
TIM also evaluates its suppliers based on their environmental and social performance. This occurs both during
the acquisition phase, through the qualification and listing process, and during the ongoing relationship with
TIM. Evaluation and monitoring of ESG performance is done through the Open-es platform, which also offers
training, development and capacity-building tools on sustainability issues. The platform also encourages the
exchange of best practices among suppliers within the community. TIM has set a goal of a 5% YoY increase in
subscribers to the platform. At the end of 2024, the number of subscribers is more than 1,200 compared with
about 1,000 in 2023.
In addition, TIM participates in the Joint Alliance for CSR (JAC) a joint initiative among telecommunications
operators, of which the company is also a founding member, whose main objective is to verify, assess about
the application of corporate social responsibility principles in the production centers of the main multinational
suppliers in the industry. Through the JAC, audits are also conducted on the suppliers with higher CSR risk with
specialized third-party companies. The audit, if successful, verifies the maintenance of the supplier’s level of
performance against the required standards over time; in the case of non-conformity, the audit instead
commits the supplier to resolve the finding with a Corrective Action Plan (CAP) within agreed deadlines. During
2024, through the JAC, 139 audits were conducted that found a total of 675 non-compliances. TIM conducted a
total of 11 audits during the year.
[15 b]: Confirmation of suppliers’ inclusion in the TIM Group’s register is subject to a pre-contract qualification,
aimed at assessing their economic-financial, technical-organizational, and sustainability characteristics.
In 2024, 100% of newly qualified suppliers qualified by the Domestic BU undertook in writing in their own name
and on behalf of any authorized subcontractors, collaborators, and employees, to comply with the principles of
conduct of the Group’s Code of Ethics and Conduct. In 2024, 217 suppliers were qualified, of which more than
18% were assessed by questionnaire on socio-environmental issues.
In Brazil, TIM S.A. has implemented a socio-environmental qualification process to reduce the risks associated
with critical supplier activities. This process is part of selecting new providers and upgrading existing ones.
During this phase, the social, environmental, health, and safety aspects of suppliers’ activities are assessed. In
2024, 298 suppliers were evaluated, accounting for 14% of the total of 2,176 suppliers undergoing the
Report on Operations of the
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261
qualification process. Of these, 93 are still under evaluation, 123 have been approved to provide services with
low or medium socio-environmental risk, and 82 have been excluded without the need for improvement plans.
Disclosure Requirement G1-3 – Prevention and detection of corruption and bribery
[18 a]: To prevent, identify and address situations where acts of active and passive corruption occur TIM S.p.A.
has implemented an Anti-Corruption Management System (EMS) in accordance with ISO 37001:2016,
applicable to the Company, members of corporate bodies, employees, and collaborators. The UNI ISO
37001:2016 certification, obtained in 2019, was reaffirmed until October 13, 2025.
Subsidiaries are required to adopt EMS or equivalent safeguards based on corruption risks. In addition, the
following are certified according to the ISO 37001 standard, TIM S.A. (March 15, 2021), Olivetti S.p.A. (May 11,
2022), TI Trust Technology S.r.l (June 6, 2022) Telecontact S.p.A. (July 21, 2022) and TI Sparkle S.p.A. (December
15, 2023).
Each year, TIM defines an EMS verification and monitoring plan, submitted for evaluation by the external
Certifying Body to maintain certification.
In 2024, downstream of network separation, TIM S.p.A. has assessed about 100 business units that fall under
the corruption risk assessment, in accordance with UNI ISO 37001:2016 certification. To combat corruption, it is
essential to pay special attention to and constantly monitor certain sensitive activities. TIM S.p.A. then carried
out a risk assessment, analyzing significant risk scenarios related to both active and passive bribery to both
public and private entities. The Anti-Corruption Risk Assessment has identified areas and job positions at risk of
corruption, as well as Third Parties and relationships that may present risk profiles in relation to anti-corruption
regulations.
The Company has also implemented an IT system to support Third Party Risk Assessment, which is currently
operational for suppliers and business and consumer business partners in the indirect sales network, through
Anti-corruption Due Diligence activities.
In Brazil, TIM S.A. adopts a Corporate Risk Management (ERM) process according to the Corporate Risk
Management Policy to identify and manage risks that may compromise business objectives and to take
mitigation measures. The Audit and Risk Committee is involved in the process of identifying and assessing
risks, including corruption risks, and the respective mitigation controls and continuous monitoring of sensitive
activities. In Brazil, the Risk & Compliance area conducts an annual risk assessment of Sensitive Activities,
linking them to material processes, responsible areas and functions, stakeholders involved, risk scenarios, and
mapped controls.
The objective is to establish the basis for the Anti-Corruption Management System (AMS) through the
identification and assessment of key corruption risks and the controls implemented to mitigate them.
In assessing corruption risks, factors such as the location and sectors of activities, the nature and complexity of
activities, third parties involved, and relationships are considered. TIM S.A. identifies foreseeable corruption
risks, maps the processes at risk, documents the methodologies used, and assesses the adequacy and
effectiveness of existing controls to mitigate these risks.
The Company defines the criteria for assessing corruption risk, considering TIM’s policies and objectives. This
assessment is performed and verified by the Risk & Compliance Function in the context of risk assessment,
both periodically (to adequately assess changes and new information within established deadlines and
timeframes) and in the event of significant changes in TIM S.A.'s structure or activities. To combat corruption, it
is essential to pay special attention to and constantly monitor certain activities that are considered sensitive.
The annual Anti-Corruption Risk Assessment activity identifies relationships, third parties, roles, and activities
with a medium- to high-level of exposure to corruption risk.
[18 b]: Reports of possible cases of active or passive corruption are received by the Supervisory Board of TIM or
the TIM Group company concerned. This body, with the support of TIM’s Audit Function, conducts an
investigation by gathering the necessary information from the structures involved. These bodies are
independent of the management that deals with the prevention and detection of corruption. After
investigation and reporting to the Supervisory Board, TIM’s Audit Function notifies the Compliance Function of
any findings of suspected fraud with potential anti-corruption impacts. If recommendations for corrective
actions emerge from the analyses, the management of the audited areas/processes must: define a corrective
action plan to resolve critical issues, ensure its implementation within the stipulated time frame, report to the
Audit Function on the status of implementation of actions. The Supervisory Board monitors the progress of
corrective actions through periodic information provided by the Audit Function.
[18 c]: The TIM Board of Directors (BoD) approves the Anti-Corruption Policy, Code of Ethics and Conduct, 231
Organizational Model, and Compliance Management Activity Plan related to the Anti-Corruption Management
System (AMS), receiving updates on the progress of the latter.
Likewise, the Boards of Directors of domestic subsidiaries approve the Group’s Code of Ethics and Conduct, its
231 Organizational Model, the EMS for ISO 37001-certified companies, and the Anti-Corruption Policy.
The Board of Directors of TIM S.A. approves the Company’s Code of Ethics and Conduct, a foreign version of the
231 Organizational Model in accordance with local regulations, and the Anti-Corruption Management System
in accordance with ISO 37001. Finally, the Boards of Directors of the main foreign companies of the Sparkle
Group adopt an international version of the 231 Organizational Model, in line with relevant local regulations.
[20]: The Anti-Corruption Policy, Code of Ethics and Conduct and 231 Organizational Model (General Part) are
available on the corporate website, corporate intranet, and Group Supplier Portal, together with the Anti-
Corruption Manifesto.
Contracts with business partners include an “anti-corruption clause” that requires acknowledgement of the
Code of Ethics and Conduct, the Anti-Corruption Policy, and the 231 Organizational Model. Order Vouchers are
issued with the acceptance clause of these documents.
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262
In addition, since 2023 a video interview has been made available to third parties regarding the Code of Ethics
and Conduct, the 231 Organizational Model and the Anti-Corruption Policy. In 2024, this was viewed by 34
business and consumer business partners from the indirect sales network.
TIM S.A. does not provide appropriate communication to third parties about its Anti-Corruption Policies,
however, all suppliers are informed about the Anti-Corruption Policies at the time they sign a Service Supply
Agreement with TIM S.A.
[21 a, b, c]: TIM’s Anti-Bribery Policy provides for a Due Diligence check for resources who hold or are destined
to hold roles identified as Significant Positions (job positions with non-low corruption risk) according to the
Internal Guidelines.
This verification includes various aspects, including: The reputation and reliability of resources; The presence of
any conflicts of interest, such as economic and financial interests in Third Party activities; relations with the
public administration; the organizational position and the conferral of powers/proxies; participation in training
initiatives on anti-corruption, the 231 Organizational Model and the Code of Ethics and Conduct.
The same Policy specifies that TIM conducts training and information activities to corporate bodies and
employees, on the application of the 231 Organizational Model, anti-corruption issues, the Anti-Corruption
Policy, implementation procedures, the Anti-Corruption Management System (AMS), and relevant regulations.
The Anti-Corruption Policy and implementation procedures are communicated to respective stakeholders
through publication on specific web portals or through dedicated communication initiatives.
The Compliance Department's Activity Plan includes Compliance Management Training and Communication
initiatives (document for internal use of the Compliance Department). This document, approved by the BoD,
provides, with regard to Training and Communication, different types of initiatives tailored to the target
audience.
In particular, there are initiatives aimed at specific targets (such as managers, specific corporate functions, new
hires, etc.) and mass awareness initiatives aimed at the entire corporate population. As a result, 100% of risk
functions are covered by anti-corruption training programs. In 2024, 38,439 hours of anti-corruption training
were provided. In addition, the Compliance Department has delivered an induction on compliance issues to the
Chairman and the Sustainability Committee.
G1-Metrics and targets
Disclosure Requirement G1-4 – Incidents of corruption or bribery
[24 a, b]: No cases of corruption or bribery were identified in 2024. The Rome Public Prosecutor's Office is
currently investigating alleged bribery between private individuals who reported to a former Group executive.
The Company declares that it had no involvement in the incident and that it is an injured party.
The Company has taken action against those involved, both employees and external counterparties.
The TIM Board of Directors, having taken note of investigation by the Rome Public Prosecutor’s Office into
alleged bribery between private individuals, has declared that it will work fully with the investigating
authorities, also in terms of identifying any liability against the Group, which had no involvement in the
incident and should be regarded as an injured party. In this context, the Company had already launched
specific auditing activities in the light of press rumors about the incident (referred to as the “Sogei” affair).
In addition to the above, further steps have been taken with the involvement of the Supervisory Bodies and
management.
In the past 3 years, TIM S.p.A. has taken specific adjustment measures in its relations with suppliers for
situations attributable to corruption.
Disclosure Requirement G1-6 - Payment practices
[33 a, d]: In line with company procedures, invoices are paid within the contractual terms, except for residual
and insignificant cases, such as invoices under dispute for which payment approval is suspended or cases
subject to different payment practices. Average payment term in days is calculated as a weighted average
based on the volume of trade payables, separated by payables covered by finance agreements and payables
not covered by such agreements.
[33 b]: TIM’s standard contractual payment terms provide for payment against invoice at 120 days for 95% of
the commodity groups classified in the company, while 60 or 90 days apply for the remaining 5% of
commodity groups. There are additional cases that may deviate from standard payment terms, such as to
specific framework agreements or lease purchases.
[33 c]: For TIM S.p.A., the number of pending disputes with suppliers for non-payment is 1422.
Report on Operations of the
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263
22 Figure subject to possible change given the recent migration to a later release of the software system used by legal functions still undergoing
assessment and verification.
5. NETCO PERFORMANCE INFORMATION
Introduction
In line with what is set out in the section “The Sale of NetCo” of the Report on Operations, to which reference is
made for more details, the Board of Directors of TIM S.p.A. on November 3, 4 and 5, 2023, reviewed and
approved the binding offer submitted by Kohlberg Kravis Roberts & Co. L.P. ("KKR") for the acquisition of the
entire share capital of FiberCop S.p.A. following the contribution by TIM S.p.A. of a business unit consisting of
the activities related to the primary network, the wholesale business and the entire stake in the subsidiary
Telenergia S.r.l. (the “NetCo Branch”).
The transaction was governed by a transaction agreement, signed on November 6, 2023, between TIM S.p.A.,
Optics Bidco S.p.A., Teemo Bidco S.à r.l. (subsidiaries of KKR) and FiberCop S.p.A., which provided, among other
things, for the contribution by TIM S.p.A. of the NetCo Branch to FiberCop S.p.A., a company already operating
in the management of the secondary fiber and copper network, and the simultaneous purchase by Optics
BidCo S.p.A. of TIM S.p.A.'s entire stake in FiberCop S.p.A.
The transaction agreement also governed the terms of a master services agreement between the new Entity
"NetCo" (i.e. FiberCop S.p.A. following the transfer of the NetCo Branch) and TIM S.p.A., which was signed upon
completion of the transaction.
The transaction was finalized on July 1, 2024.
In this section, to offer maximum transparency to the market and to users of its Sustainability Report, the TIM
Group therefore discloses the main sustainability indicators of the NetCo component in the portion of the year
in which it was part of the Organization, i.e. between January 1 and June 30, 2024. The indicators disclosed
were selected based on two main drivers:
■
sustainability aspects potentially material to NetCo’s business (fixed network);
■
the choice of flow indicators at the expense of stock 23 indicators.
The analysis conducted identified the following ESRS disclosure requirements as material:
■
E1-5: Energy consumption and mix
■
E1-6: Gross Scope 1, 2, 3 and Total GHG emissions
■
E5-5: Resource outflows
■
S1-6: Characteristics of the undertaking’s employees
■
S1-9: Diversity metrics
■
S1-14: Health and safety metrics
Based on the information available to the TIM Group, the section below discloses all information required by
the ESRS Standards with reference to the above-mentioned requirements.
Report on Operations of the
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NetCo performance information
264
23 A stock indicator measures the quantity of a thing at a given time (e.g. number of company sites at a given time - December 31). A flow indicator,
on the other hand, measures quantity over an interval of time (e.g. tCO2 emissions over a certain time interval — January 1, 2024 to June 30, 2024).
Sustainability performance
E1 - Climate change
E1 - Metrics and targets
Disclosure requirement E1-5 - Energy consumption and energy mix
[MDR-M, 77 a], [37 a, b]: Below are metrics related to the energy consumption and energy mix of the NetCo
business, which is not among the companies subject to the reporting requirements of high climate impact
industries.
TIM uses standard methodologies to measure energy consumption and its mix. Total energy consumption,
measured in megawatt hours (MWh), is divided into energy from fossil, renewable and nuclear sources. Energy
from fossil sources includes fuels such as coal, oil and natural gas, as well as purchased energy from fossil
sources.
Nuclear power, i.e., the share of electricity generated by nuclear power plants, was calculated based on the
Residual Mix, using the figure published by AIB 2023 (Association of Issuing Bodies) to ensure consistency with
the emission factors adopted in the emission calculations. For the reporting year, the share of nuclear power in
the Italian Residual Mix of 4.40% was applied to total electricity consumption from mixed sources.
Self-produced and internally consumed energy is counted only once in the relevant category.
Finally, renewable energy is detailed in three categories: renewable fuels (biomass, biogas, renewable
hydrogen), purchased renewable energy (electricity, heat, steam) and self-generated renewable energy.
[37]: Energy consumption and mix - NetCo
UOM
2024
Total energy consumption from fossil sources
MWh
670,017.62
Percentage of fossil sources in total energy consumption
%
82.69
Total energy consumption from nuclear sources
MWh
25,640.44
Percentage of energy consumption from nuclear sources in total
energy consumption
%
3.16
Fuel consumption from renewable sources
MWh
0.00
Consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources
MWh
114,303.91
Consumption of self-generated renewable energy without relying
on fuels
MWh
275.08
Total energy consumption from renewable sources
MWh
114,578.98
Percentage of renewable sources of total energy consumption
%
14.14
Total energy consumption related to own operations
MWh
810,237.04
[39]: The following are data from NetCo's business unit on power generation from nonrenewable sources and
power generation from renewable sources.
[39] Non-renewable and renewable energy production - NetCo
UOM
2024
Non-renewable energy production
MWh
58,313.45
Renewable energy production
MWh
275.08
Disclosure requirement E1-6 - Gross GHG emissions for Scope 1, 2, and 3, as well as
total GHG emissions
[MDR-M, 77 a], [44]: Below are the gross Scope 1, 2 and 3 GHG emissions attributed to the NetCo business unit
in metric tons of CO2eq. The emissions refer to the first half of 2024.
[44] [52 a, b] Gross Scope 1,2,3 GHG emissions - NetCo
UOM
2024
Gross Scope 1 GHG emissions
tCO2eq
27,557.09
Gross Scope 2 Location-Based GHG emissions
tCO2eq
183,454.93
Gross Scope 2 Market-Based GHG emissions
tCO2eq
291,698.40
Gross Scope 3 GHG emissions
tCO2eq
358,053.98
Total Location Based GHG emissions
tCO2eq
569,066.00
Total GES Market Based emissions
tCO2eq
677,309.46
Report on Operations of the
TIM Group
NetCo performance information
265
[MDR-M, 77 a], [48 a]: NetCo’s gross Scope 1 GHG emissions are reported in metric tons of CO2eq and are
generated almost exclusively from fossil fuels for heating, automotive, and power generation.
Also included in the calculation and converted to CO2 are leaks of hydrochlorofluorocarbon (HCFC) gases,
hydrofluorocarbon (HFC) gases, and other gases when present in air-conditioning and fire-fighting systems.
Valuation of CO2 equivalent emissions of HCFC, HFC and other refrigerant gases is done by considering global
warming potentials (GWP): the index is based on a relative scale that compares the gas considered with an
equal mass of carbon dioxide whose GWP is 1 and the calculation used the IPCC’s Sixth Assessment Report (VI
Report).
The emission factors used, expressed in CO2eq are published by DEFRA 2024 (Department For Environment,
Food and Rural Affairs).
The calculation of the Scope 1 GHG emissions excludes absorptions, and any shares of GHG or carbon credits
purchased, sold or transferred. Furthermore, NetCo is not included in the scope of activities for the EU
Emissions Trading System (EU ETS).
Scope 1 GHG emissions are calculated by distinguishing the origin from stationary combustion, mobile
combustion, process emissions and fugitive emissions using suitable data on activities that include
consumption of nonrenewable fuels.
There are no biogenic emissions not included in Scope 1 attributable to the NetCo business unit.
[48a] Type of GHG emissions included in Scope 1 - NetCo
UOM
2024
Emissions by stationary combustion:
tCO2eq
13,869.09
emissions from trigeneration
tCO2eq
11,643.27
heating emissions
tCO2eq
1,988.26
g
y
sources*24
tCO2eq
237.56
biogas emissions
tCO2eq
—
Mobile combustion emissions:
tCO2eq
12,023.80
emissions from haulage;
tCO2eq
12,023.80
emissions from machinery used for the maintenance and
cleaning of plants;
tCO2eq
—
Process emissions:
tCO2eq
—
Emissions from tributaries;
tCO2eq
—
fugitive emissions:
tCO2eq
1,664.20
emissions from the dispersion of ozone-depleting gases
tCO2eq
1,664.20
Total Scope 1 emissions
tCO2eq
27,557.09
[48 b]: For Scope 1 GHG emissions, the NetCo business unit (in line with the Group) does not use and therefore
does not consider emissions regulated by ETS.
[MDR-M, 77 a], [49 a, b], [52 a, b], [RA 45 d]: NetCo’s gross Scope 2 GHG emissions, expressed in metric tonnes
of CO2eq, are reported in a disaggregated manner, distinguishing between emissions measured by the
Location Based method and those measured by the Market Based method.
For the Location-Based methodology, NetCo uses the average emissions associated with the electricity grid of
the country where the energy is consumed, applying national emission factors. Databases used include ISPRA
2023 (published on 5/22/24). This approach reflects the indirect emissions deriving from purchased energy
based on the composition of the local power grid.
For the Market-Based methodology, specific energy supply contracts such as green power purchase
agreements were considered. NetCo uses the AIB 2023 emission factors (published 4/06/24) for the residual
mix. No biogenic CO2 emissions from the combustion or biodegradation of biomass are recorded for Scope 2
GHG emissions.
"Market Based" emissions are covered by Power Purchase Agreements with ERG for the supply of energy from
wind power plants, covering 17% of the total energy purchased. The percentage coverage is for the first half of
2024 which reports energy consumption and the share of PPA available to NetCo as of June 30, 2024.
Below are the gross Scope 2 GHG emissions attributed to the NetCo business unit in metric tons of CO2eq.
Report on Operations of the
TIM Group
NetCo performance information
266
24 Emissions from self-generated electricity from mixed sources in the table include emissions from diesel fuel for generators
[49 a, b] Gross Scope 2 GHG emissions - NetCo
UOM
2024
Gross Scope 2 Location-Based GHG emissions
tCO2eq
183,454.93
Gross Scope 2 Market-Based GHG emissions
tCO2eq
291,698.40
[MDR-M, 77 a], [51]: NetCo's gross Scope 3 GHG emissions are in line with the principles of the Corporate
Value Chain (Scope 3) Accounting and Reporting Standard of the Greenhouse Gas Protocol (2011 version, pp.
61 and 65-68) and include reporting on the following emission-relevant categories: 1. “Purchased goods and
services”; 2. “Capital goods; 3. “Fuel and energy-related activities”.
Offsets and any GHG allowances or carbon credits purchased, sold or transferred are excluded from the
calculation of Scope 3 emissions.
The Scope 3 categories were measured using inputs from specific activities along the upstream and
downstream value chain, but were not calculated based on raw data obtained from suppliers or other partners
along the value chain.
Below are the calculation methodologies for the different Scope 3 categories:
■
Category 1 - Purchase of products and services.: consistent with the Greenhouse Gas Protocol (GHGP), an
expenditure-based methodology was adopted using the purchase items (expenditure approved), by
commodity group. For the conversion of the monetary value into emissions, the NACE-Eurostat emission
factors were used.
■
Category 2 - Purchase of capital goods: an expenditure-based methodology was adopted that used
investment items (expenditure approved, relative to the purchase value of the asset) by commodity group.
Emission factors related to the type of purchase published by Eurostat were used to convert the monetary
value to emissions.
■
Category 3 - Fuels and energy-related activities (not included in Scope 1 or 2): the calculation was made
by multiplying the fuel consumption and electricity purchase data of Scope 1 and Scope 2 by their
respective emission factors. These factors include the impact generated by the production of the energy
carrier and the losses associated with transportation and distribution. For fuels, the DEFRA 2024 database
was used; For nonrenewable electricity, however, DEFRA 2021 emission factors were used, as those for the
2024 database were no longer available.
The calculation of the Scope 3 GHG emissions excludes absorptions, and any shares of GHG or carbon credits
purchased, sold or transferred.
[51]: Gross Scope 3 GHG emissions - NetCo
UOM
2024
Category 1 Purchased goods and services
tCO2eq
262,348.15
Category 2 Capital goods
tCO2eq
38,588.40
Category 3 Fuel- and energy-related activities
not included in Scope 1 or Scope 2
tCO2eq
57,117.43
Gross Scope 3 GHG emissions
tCO2eq
358,053.98
[MDR-M, 77 a], [47]: Due to the organizational discontinuity that occurred on July 1, 2024 and resulted in
significant changes in the circumstances affecting GHG emissions, it is not possible to provide comparative
information with respect to previous years
In addition, there were no biogenic emissions of CO2 from the combustion or biodegradation of biomass that
occur in its upstream and downstream value chain.
[MDR-M, 77 a], [53]: Below is expressed the value of GHG Intensity in metric tons of CO2eq by relating NetCo’s
net revenues to total GHG emissions by both the market-based and location-based method.
[53] GHG intensity relative to net revenues - NetCo
UOM
2024
Total Location Based GHG emissions
tCO2eq
569,066.00
Total Market Based GHG emissions
tCO2eq
677,309.46
Net revenues used to calculate GHG intensity
€ million
2,317.00
Intensity of Location Based GHG emissions
tCO2eq/million €
245.60
Intensity of Market Based GHG Emissions
tCO2eq/million €
292.32
Report on Operations of the
TIM Group
NetCo performance information
267
[55] Reconciliation with financial statements
UOM
2024
Net revenues used to calculate GHG intensity (E1-6)
€ million
2,317.00
Net revenues (other)
€ million
—
Total net revenues (in financial statements)
€ million
2,317.00
E5-Resource use and circular economy
E5_Metrics and targets
Disclosure Requirement E5-5 - Resource outflows
[MDR-M, 77 a], [37 a, b, c, d]: Waste is classified according to the European Waste Catalogue (EWC) and is
obtained through direct measurements and tracked on dedicated management systems. Waste classification,
management and delivery methods are in accordance with Directive 2008/98/EC of the European Parliament
and Council, also known as the "Waste Framework Directive."
[37] Waste generated - NetCo
2024
UOM
Hazardous
waste
Non-hazardous
waste
Total
Total waste generated
t
36.71
868.16
904.87
Waste not directed to disposal
t
36.71
868.16
904.87
Waste diverted from disposal for preparation for reuse
t
0.00
0.00
0.00
Waste diverted from disposal through recycling
t
0.00
0.00
0.00
Waste diverted from disposal for other recovery
operations
t
0.00
0.00
0.00
Total waste directed to disposal
t
0.00
0.00
0.00
Waste directed to disposal for incineration
t
0.00
0.00
0.00
Waste directed for disposal for landfill
t
0.00
0.00
0.00
Waste directed for disposal for other disposal operations
t
0.00
0.00
0.00
of which non-recycled waste
t
0.00
0.00
0.00
Percentage of waste not recycled
%
0.00
0.00
0.00
[38 a, b]: Relative to its own operations, NetCo produces:
■
Non-hazardous waste such as mixed packaging, inks and toners, discarded equipment, and electrical and
electronic waste;
■
hazardous waste such as batteries and accumulators.
These types of waste are in line with the TLC sector.
In general, the materials in the main types of waste generated by NetCo include mainly biomass (paper, wood,
and cardboard); plastic; glass; mixed metals (iron, steel and copper).
[39]: The total amount of hazardous and radioactive waste in tons attributed to NetCo is shown below.
[39] Hazardous and radioactive waste - NetCo
UOM
2024
Total amount of hazardous waste
t
36.71
Including total amount of radioactive waste
t
0.00
[MDR-M, 77 a], [40]: The ways in which waste is classified, managed and delivered are identified in accordance
with Directive 2008/98/EC of the European Parliament and Council, also known as the “Waste Framework
Directive”.
Data pertaining to waste type follow the European Waste Catalogue (EWC) classification and are obtained
through direct measurements and tracked on dedicated management systems.
Report on Operations of the
TIM Group
NetCo performance information
268
S1-Own workforce
S1 - Metrics and targets
Disclosure Requirement S1-6 - Characteristics of the undertaking’s employees
[50 a] Employees by gender - NetCo.
2024
UOM
Women
Men
Other
Not reported
Total
Total employees - at the end of the period (head
)
n
4,479
15,392
—
—
19,871
Employee breakdown by gender - at the end of the
i d
%
22.54
77.46
—
—
—
Total employees - period average (head count)
n
—
—
—
—
—
Employee breakdown by gender - period average
%
—
—
—
—
—
[50 b] Employees by contract type and gender at end of period - NetCo
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
4,479
15,392
—
—
19,871
Permanent employees
n
4,479
15,391
—
—
19,870
Fixed-term employees
n
0
1
—
—
1
Non-guaranteed hours employees
n
0
0
—
—
0
[50 c] Employee turnover - NetCo
2024
UOM
Women
Men
Other
Not reported
Total
Total employees
n
4,479
15,392
—
—
19,871
Employees who have left the company
n
20
51
—
—
71
Employee turnover rate
%
0.45
0.33
—
—
0.36
[MDR-M, 77 a]: The turnover rate is calculated as the ratio of the number of employees terminated during the
reporting year to the total number of employees at the end of the reporting period. Employees who have
terminated employment due to retirement, incentive termination, spontaneous resignation, layoff, and death
in service are considered. It is specified that all data are calculated as of 06/30/2024.
[MDR-M, 77 a], [50 d]: The data collection of employee numbers for the first half of 2024 for the NetCo
business unit was carried out by extrapolating data from the Group’s IT systems. The data are expressed in
headcount and at the end of the period.
[MDR-M, 77 a], [50 e]: To understand the data it is necessary to refer to the introduction in the same section. In
addition, with reference to the total number of employees, the NetCo perimeter reported is photographed as
of June 30, 2024, and includes 7 headcounts terminated on the same day and thus not included in the
headcount to be transferred to NetCo.
[50 f]: The reference to the number of NetCo employees cannot be consulted in the 2024 Consolidated
Financial Statements as this figure is no longer reported following the sale of NetCo.
Disclosure requirement S1-9 - Diversity metrics
[66 a] Employees at Top management level by gender - NetCo
2024
UOM
Women
Men
Other
Not reported
Total
Total employees at Top management level
n
1
2
—
—
3
Gender distribution amongst employees at top
management level
%
33.30
66.70
—
—
100.00
Report on Operations of the
TIM Group
NetCo performance information
269
[MDR-M, 77 a]: NetCo defines “Top Management” as people who play a key role in the development of
business strategies and who report directly to the Management and Control bodies or to the Chief Executive
Officer. It is specified that NetCo data are calculated as of 06/30/2024.
[66 b] Employee distribution by age group - NetCo
2024
UOM
Women
Men
Other
Not
reported
Total
Total employees
n
4,479
15,392
—
—
19,871
Employees under 30 years old
n
32
295
—
—
327
%
0.71
1.92
—
—
1.65
Employees between the ages of 30 and 50
n
1,326
3,187
—
—
4,513
%
29.60
20.71
—
—
22.71
Employees over the age of 50
n
3,121
11,910
—
—
15,031
%
69.68
77.38
—
—
75.64
[MDR-M, 77 a]: In this table, the percentage of employees by age group is calculated by relating the number of
employees by age group and gender to the total by gender. It is specified that for NetCo, data are calculated as
of 06/30/2024.
[66 b] Percent distribution of employees by age group - NetCo
2024
UOM
Women
Men
Other
Not
reported
Total
Percentage of employees under 30
%
0.16
1.48
—
—
1.65
Percentage of employees between 30 and 50 years
ld
%
6.67
16.04
—
—
22.71
Percentage of employees over 50 years old
%
15.71
59.94
—
—
75.64
[MDR-M, 77 a]: This table shows the percentage of employees by age group and gender, out of the total
number of employees. It is specified that for NetCo, data are calculated as of 06/30/2024.
Disclosure Requirement S1-14 - Health and Safety Metrics
[88 a]: Workers covered by the health and safety management system - NetCo
2024
UO
M
Employees
Non-
employees
Total
Own workers covered by the health and safety
management system
n
19,871
—
19,871
%
100.00
—
100.00
[88 b]: Fatalities from work-related injuries and illnesses - NetCo
2024
UOM
Employees
Non-
employees
Other
workers
Total
Fatalities from work-related injuries and illnesses
n
0
0
0
0
From January 1, 2024 to June 30, 2024, there have been no deaths due to work-related injuries.
[88 c] Recordable Occupational Injuries - NetCo
2024
UOM
Employees
Non-
employees
Total
Recordable work-related accidents
n
108
—
108
Rate of recordable work-related accidents
%
6.99
—
6.99
Report on Operations of the
TIM Group
NetCo performance information
270
[MDR-M, 77 a]: The number of recordable occupational injuries corresponds to the recorded injuries that
resulted in at least one day off work. The figure does not include injuries caused by passive accidents.
The work injury rate is calculated as the ratio of the number of recorded work injuries to the total hours worked
in the year (given by the sum of hours worked, overtime hours, training hours and travel hours), which is
39,850,276, multiplied by 1,000,000. It is specified that the data are calculated as of 06/30/2024.
[88 d, e] Cases and days lost due to occupational injuries, accidents and deaths - NetCo
UOM
2024
Recordable cases of work-related illness
n
3
Work days lost due to work-related injuries and fatalities due to work-
related injuries and illnesses and fatalities due to illnesses
n
3,703
[MDR-M, 77 a]: The number of cases involving recordable work-related illnesses refers to complaints filed
during the reporting period. Days lost due to injury do not consider days not worked for commuting accidents,
unless transportation was arranged by the Company, or for injuries caused by passive accidents. In the case of
an injury with absences spanning two reporting years, the injury is recorded in the year in which it occurs, while
the days of absence are counted in the year in which they are actually used. It is specified that all data are
calculated as of 06/30/2024.
Report on Operations of the
TIM Group
NetCo performance information
271
Certification of the sustainability report pursuant
to Article 81-ter of CONSOB Regulation no. 11971,
of May 14, 1999, as amended
The undersigned Pietro Labriola, in his capacity as Chief Executive Officer of TIM S.p.A., and Enrica Danese, in
her capacity as Sustainability Reporting Manager of TIM S.p.A., certify, pursuant to Article 154-bis, paragraph 5-
ter, of Legislative Decree No. 58 of February 24, 1998, that the sustainability reporting included in the Report on
Operations has been prepared:
–
in accordance with the reporting standards applied pursuant to Directive 2013/34/EU of the
European Parliament and of the Council of June 26, 2013, and Legislative Decree No. 125 of
September 6, 2024;
–
with the specifications adopted under Article 8(4) of Regulation (EU) 2020/852 of the European
Parliament and of the Council of June 18, 2020.
March 5, 2025
Report on Operations of the
TIM Group
Certification of sustainability reporting
272
Independent Auditors’ Report on the
Sustainability Report
Report on Operations of the
TIM Group
Independent Auditors’ Report
273
EY S.p.A.
Sede Legale: Via Meravigli, 12 – 20123 Milano
Sede Secondaria: Via Lombardia, 31 – 00187 Roma
Capitale Sociale Euro 2.975.000 i.v.
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998
A member firm of Ernst & Young Global Limited
EY S.p.A.
Via Meucci, 5
10121 Torino
Tel: +39 011 5161611
Fax: +39 011 5612554
ey.com
Independent auditor’s report on the limited assurance of the
Consolidated Sustainability Statement in accordance with Article 14-
bis of Legislative Decree n. 39, dated 27 January 2010
(Translation from the original Italian text)
To the Shareholders of
TIM S.p.A.
Conclusions
We have been appointed to perform a limited assurance engagement pursuant to Articles 8 and 18,
paragraph 1, of Legislative Decree n. 125 dated 6 September 2024 (hereinafter "Decree") on the
Consolidated Sustainability Statement of TIM S.p.A. and its subsidiaries (hereinafter "Group" or "TIM
Group") for the year ended on 31 December 2024 (hereinafter ‘’CSS’’), prepared in accordance with
Article 4 of the Decree, included in the specific section of the Report on operations of TIM Group.
Based on the procedures performed, nothing has come to our attention that causes us to believe
that:
-
the TIM Group CSS for the year ended on 31 December 2024, has not been prepared, in all
material aspects, in accordance with the reporting principles adopted by the European
Commission pursuant to European Directive 2013/34/EU (European Sustainability Reporting
Standards, hereinafter also referred to as "ESRS");
-
the information included in the paragraph “EU Taxonomy” of the CSS has not been prepared, in
all material aspects, in accordance with Article 8 of European Regulation n. 852 dated 18 June
2020 (hereinafter "Taxonomy Regulation").
Elements underlying the conclusions
We have performed a limited assurance engagement in accordance with the Sustainability Reporting
Assurance Standard (“Principio di Attestazione della Rendicontazione di sostenibilità”) – SSAE (Italy).
The procedures performed in this type of engagement vary in nature and timing compared to those
necessary for conducting an engagement aimed at obtaining a reasonable level of assurance and are
also less extensive. Consequently, the level of assurance obtained in a limited assurance engagement
is substantially lower than the level of assurance that would have been obtained if the engagement
aimed to acquire a reasonable level of assurance. Our responsibilities under this Standard are further
described in the section "Auditor’s responsibility for the Assurance on the Consolidated Sustainability
Statement" of this report.
We are independent in accordance with the standards and principles regarding ethics and
independence applicable to the assurance engagement of the CSS according to Italian law.
Our audit firm applies the International Standard on Quality Control (ISQM Italy) 1, under which it is
required to establish, implement, and operate a quality management system that includes
instructions and procedures on compliance with ethical principles, professional principles, and
applicable legal and regulatory provisions.
We believe we have obtained sufficient and appropriate evidence on which to base our conclusions.
Other Matters – Comparative information
The CSS for the year ended on 31 December 2024, contains, in the specific section "EU Taxonomy"
the comparative information referred to in Article 8 of the Taxonomy Regulation related to the year
ended on 31 December 2023, which has not been subjected to verification.
Responsibility of the TIM Group Directors and Board of Statutory Auditors for the
Consolidated Sustainability Statement
The Directors are responsible for the development and implementation of procedures used to identify
the information included in the CSS in accordance with the requirements of the ESRS (hereinafter the
"Materiality assessment process") and for the description of such procedures in the paragraph
"Impact, risk, and opportunity management" of the CSS.
The Directors are also responsible for the preparation of the CSS, which contains the information
identified through the Materiality assessment process, in accordance with the requirements of Article
4 of the Decree, including:
-
compliance with ESRS;
-
compliance with Article 8 of the EU Taxonomy Regulation regarding the information contained in
the paragraph “EU Taxonomy”.
This responsibility entails the establishment, implementation, and maintenance, as required by law,
for that part of internal control that they consider necessary in order to allow the preparation of the
CSS in accordance with the requirements of Article 4 of the Decree, free from material
misstatements caused by fraud or not intentional behaviors or events. This responsibility also
includes the selection and application of appropriate methods for processing the information as well
as the development of assumptions and estimates regarding specific sustainability information that
are reasonable under the circumstances.
The Board of Statutory Auditors is responsible, within the terms provided by the law, for overseeing
the compliance with the requirements of the Decree.
Intrinsic limitations in the preparation of the Consolidated Sustainability
Statement
As indicated in paragraph "Basis of preparation", for the purpose of reporting prospective
information in accordance with the ESRS, the Directors are required to prepare such information
based on assumptions, described in the CSS, regarding events that may occur in the future and
possible future actions by the Group. Due to the uncertainty associated with the realization of any
future events, both concerning the occurrence itself and regarding the extent and timing of its
occurrence, the variations between actual values and prospective information could be significant.
As indicated in the paragraph "Basis of preparation", the information related to Scope 3 greenhouse
gas emissions is subject to greater intrinsic limitations compared to Scope 1 and 2, due to the limited
availability and accuracy of the information used to define such information, both quantitative and
qualitative, as well as due to reliance on data, information, and evidence provided by third parties.
Auditor’s responsibility for the Assurance of the Consolidated Sustainability
Statement
Our objectives are to plan and perform procedures to obtain a limited level of assurance that the CSS
is free from material misstatements, due to fraud or not intentional behaviors or events, and to issue
a report containing our conclusions. Errors may arise from fraud or not intentional behaviors or
events and are considered significant if it can be reasonably expected that they, individually or in the
aggregate, could influence the decisions made by users based on the CSS.
In the context of the engagement aimed at obtaining a limited level of assurance in accordance with
the Sustainability Reporting Assurance Standard (“Principio di Attestazione della Rendicontazione di
Sostenibilità”) – SSAE (Italy), we exercised professional judgment and maintained professional
skepticism throughout the duration of the engagement.
Our responsibilities include:
-
considering the risks to identify the information in which a significant error is likely to occur,
whether due to fraud or not intentional behaviors or events;
-
defining and performing procedures to verify the information in which a significant error is likely
to occur. The risk of not detecting a significant error due to fraud is higher than the risk of not
detecting a significant error arising from not intentional behaviors or events, as fraud may
involve collusion, forgery, intentional omissions, misleading representations, or manipulation of
internal controls;
-
directing, supervising, and conducting the limited assurance of the CSS and assuming full
responsibility for the conclusions regarding the CSS.
Summary of the work performed
An engagement aimed at obtaining a limited level of assurance involves performing procedures to
obtain evidence as a basis for formulating our conclusions.
The procedures performed on the CSS were based on our professional judgment and included
interviews, primarily with the company personnel responsible for preparing the information included
in the CSS, as well as documents analysis, recalculations and other procedures aimed to obtain
evidence considered appropriate.
In particular, we performed the following procedures, partly in a preliminary phase before the end of
the year and subsequently in a final phase up to the date of issuance of this report:
-
understanding the business model, the Group's strategies, and the context in which it operates
concerning sustainability issues;
-
understanding the processes underlying the generation, detection, and management of the
qualitative and quantitative information included in the CSS, including the analysis of the
reporting perimeter;
-
understanding the process implemented by the Group for identifying and assessing relevant
impacts, risks, and opportunities based on the principle of Double Materiality concerning
sustainability issues and verifying the related information included in the CSS;
-
identifying the information for which there is a likelihood of a significant error risk;
-
defining and performing analytical and substantive procedures, based on our professional
judgment, to address the identified significant error risks, including:
-
for the information collected at the Group level:
carrying out inquiries and document analysis regarding qualitative information,
particularly policies, actions, and targets on sustainability issues, to verify
consistency with the evidence collected;
performing analytical procedures and limited assurance procedures on a sample basis
regarding quantitative information;
-
for the information collected at Company level, remote meetings were held for TIM S.p.A. and
TIM S.A. These Companies were selected based on their activities and their contribution to the
CSS metrics. During these activities, we conducted interviews with Group personnel and
obtained documentary evidence regarding the determination of the metrics.
-
regarding the requirements of Article 8 of the EU Taxonomy Regulation, understanding the
process implemented by the Group to identify eligible economic activities and determine their
aligned nature based on the provisions of the EU Taxonomy Regulation, and verifying the related
information included in the CSS;
-
cross-checking the information reported in the CSS with the information contained in the
consolidated financial statements in accordance with the applicable financial reporting
framework or with the accounting data used for the preparation of the consolidated financial
statements or with the management data of an accounting nature;
-
verifying the structure and presentation of the information included in the CSS in accordance
with the ESRS;
-
obtaining the representation letter.
Turin, 24 March 2025
EY S.p.A.
Signed by: Ettore Abate, Auditor
This report has been translated into the English language solely for the convenience of international
readers.
STATEMENTS
CONS
OLIDA
TED
TIM GROUP
CONTENTS
TIM GROUP CONSOLIDATED FINANCIAL
STATEMENTS
Consolidated Statements of Financial Position ............................... 280
Separate Consolidated Income Statements ..................................... 282
Consolidated Statements of Comprehensive Income ..................... 283
Consolidated Statements of Changes in Equity ............................... 284
Consolidated Statements of Cash Flows ........................................... 285
Note 1 Form, content and other general information ..............................................................
287
Note 2 Accounting Policies ............................................................................................................
289
Note 3 Scope of consolidation ......................................................................................................
303
Note 4 Goodwill ...............................................................................................................................
305
Note 5 Intangible assets with a finite useful life ........................................................................
308
Note 6 Property, plant and equipment
........................................................................................
310
Note 7 Right of use assets .............................................................................................................
312
Note 8 Investments ........................................................................................................................
313
Note 9 Non-current and current financial assets ......................................................................
316
Note 10 Miscellaneous receivables and other non-current assets .........................................
318
Note 11 Income tax expense (current and deferred) ................................................................
319
Note 12 Inventories .........................................................................................................................
323
Note 13 Trade and miscellaneous receivables and other current assets ..............................
323
Note 14 Discontinued operations/Non-current assets held for sale ......................................
325
Note 15 Equity .................................................................................................................................
329
Note 16 Non-current and current financial liabilities ................................................................
332
Note 17 Net financial debt .............................................................................................................
337
Note 18 Financial risk management ............................................................................................
339
Note 19 Derivatives .........................................................................................................................
343
Note 20 Supplementary disclosures on financial instruments ................................................
347
Note 21 Employee benefits ...........................................................................................................
352
Note 22 Provisions ..........................................................................................................................
354
Note 23 Miscellaneous payables and other non-current liabilities .........................................
355
Note 24 Trade and miscellaneous payables and other current liabilities ..............................
356
Note 25 Disputes and pending legal actions, other information, commitments and
guarantees .......................................................................................................................................
358
Note 26 Revenues ...........................................................................................................................
374
Note 27 Other income ....................................................................................................................
374
Note 28 Acquisition of goods and services .................................................................................
375
Note 29 Employee benefits expenses .........................................................................................
375
Note 30 Other operating expenses ..............................................................................................
376
Note 31 Internally generated assets ............................................................................................
376
Note 32 Depreciation and amortization ......................................................................................
377
Note 33 Gains/(losses) on disposals of non-current assets .....................................................
377
Note 34 Impairment reversals (losses) on non-current assets
................................................
378
Note 35 Other income (expenses) from investments ...............................................................
378
Note 36 Finance income and expenses ......................................................................................
379
Note 37 Profit (loss) for the year ...................................................................................................
381
Note 38 Earnings per share ...........................................................................................................
382
Note 39 Segment reporting ...........................................................................................................
384
Note 40 Related-party transactions ............................................................................................
387
Note 41 Equity compensation plans ............................................................................................
398
Note 42 Significant non-recurring events and transactions ....................................................
401
Note 43 Positions or transactions resulting from atypical and/or unusual operations .......
402
Note 44 Other information ............................................................................................................
403
Note 45 Events subsequent to December 31, 2024 ...................................................................
406
Note 46 List of companies of the TIM Group ..............................................................................
407
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
Assets
(million euros)
notes
12/31/2024
of which
with
related
parties
12/31/2023
of which
with
related
parties
Non-current assets
Intangible assets
Goodwill
4)
11,030
—
19,170
—
Intangible assets with a finite useful life
5)
6,011
—
7,122
—
17,041
—
26,292
—
Tangible assets
6)
Property, plant and equipment owned
4,560
—
14,692
—
Rights of use assets
7)
3,467
1
5,515
51
Other non-current assets
Investments in associates and joint ventures accounted
for using the equity method
8)
265
—
537
—
Other investments
8)
150
—
140
—
Non-current financial receivables arising from lease
contracts
9)
40
—
112
64
Other non-current financial assets
9)
646
—
1,103
—
Miscellaneous receivables and other non-current assets
10)
1,795
3
2,187
2
Deferred tax assets
11)
513
—
701
—
3,409
—
4,780
—
Total Non-current assets
(a)
28,477
—
51,279
—
Current assets
Inventories
12)
297
—
345
—
assets
13)
4,146
203
4,699
94
Current income tax receivables
11)
124
—
191
—
Current financial assets
9)
Current financial receivables arising from lease
contracts
44
24
162
53
Securities other than investments, other financial
receivables and other current financial assets
1,651
437
2,571
—
Cash and cash equivalents
2,924
—
2,912
—
4,619
—
5,645
—
Current assets sub-total
9,186
—
10,880
—
Discontinued operations /Non-current assets held for
sale
14)
of a financial nature
—
—
—
—
of a non-financial nature
—
—
—
—
—
—
—
—
Total Current assets
(b)
9,186
—
10,880
—
Total Assets
(a+b)
37,663
—
62,159
—
TIM Group Consolidated
Financial Statements
Consolidated Statements of Financial Position
280
Equity and liabilities
(million euros)
notes
12/31/2024
of which
with
related
parties
12/31/2023
of which
with
related
parties
Equity
15)
Share capital issued
11,677
—
11,677
—
less: Treasury shares
(53)
—
(57)
—
Share capital
11,624
—
11,620
—
Additional paid-in capital
—
—
575
—
Other reserves and retained earnings (accumulated
losses), including profit (loss) for the year
333
—
1,451
—
Equity attributable to owners of the Parent
11,957
—
13,646
—
Non-controlling interests
1,404
—
3,867
—
Total Equity
(c)
13,361
—
17,513
—
Non-current liabilities
Non-current financial liabilities for financing contracts
and others
16)
8,728
—
21,284
—
Non-current financial liabilities for lease contracts
16)
2,421
—
4,743
2
Employee benefits
21)
200
—
511
—
Deferred tax liabilities
11)
61
—
83
—
Provisions
22)
485
—
679
—
Miscellaneous payables and other non-current liabilities
23)
896
—
1,326
19
Total Non-current liabilities
(d)
12,791
28,626
Current liabilities
Current financial liabilities for financing contracts and
others
16)
3,870
1
5,771
2
Current financial liabilities for lease contracts
16)
523
—
838
3
Trade and miscellaneous payables and other current
liabilities
24)
7,074
59
9,384
123
Current income tax payables
11)
44
—
27
—
Current liabilities sub-total
11,511
16,020
Liabilities directly associated with Discontinued
operations/Non-current assets held for sale
14)
of a financial nature
—
—
—
—
of a non-financial nature
—
—
—
—
—
—
—
—
Total Current Liabilities
(e)
11,511
—
16,020
—
Total Liabilities
(f=d+e)
24,302
—
44,646
—
Total Equity and Liabilities
(c+f)
37,663
—
62,159
—
TIM Group Consolidated
Financial Statements
Consolidated Statements of Financial Position
281
SEPARATE CONSOLIDATED INCOME
STATEMENT
(million euros)
notes
Year
2024
of which
with
related
parties
Year 2023
of which
with
related
parties
Revenues
26)
14,442
237
14,311
77
Other income
27)
233
1
141
2
Total operating revenues and other income
14,675
14,452
Acquisition of goods and services
28)
(8,017)
(251)
(7,445)
(290)
Employee benefits expenses
29)
(1,478)
(54)
(1,950)
(57)
Other operating expenses
30)
(662)
—
(772)
—
Change in inventories
10
—
26
—
Internally generated assets
31)
297
—
334
—
Operating profit (loss) before depreciation and
amortization, capital gains (losses) and impairment
reversals (losses) on non-current assets (EBITDA)
4,825
4,645
of which: impact of non-recurring items
42)
(100)
(656)
Depreciation and amortization
32)
(3,189)
—
(3,292)
—
Gains (losses) on disposals of non-current assets
33)
3
—
(11)
—
Impairment reversals (losses) on non-current assets
34)
(94)
—
—
—
Operating profit (loss) (EBIT)
1,545
1,342
of which: impact of non-recurring items
42)
(177)
(659)
Share of losses (profits) of associates and joint ventures
accounted for using the equity method
8)
(20)
—
(29)
—
Other income (expenses) from investments
75
—
53
—
Finance income
36)
1,044
3
1,235
1
Finance expenses
36)
(2,387)
(4)
(2,639)
(4)
Profit (loss) before tax from continuing operations
257
(38)
of which: impact of non-recurring items
42)
(204)
(651)
Income tax expense
(174)
—
(56)
—
Profit (loss) from continuing operations
83
(94)
Profit (loss) from Discontinued operations / Non
current assets held for sale
14)
(447)
(31)
(1,013)
(186)
Profit (loss) for the year
37)
(364)
(1,107)
of which: impact of non-recurring items
42)
(12)
(670)
Attributable to:
Owners of the Parent
(610)
(1,441)
Non-controlling interests
246
334
(euros)
Year 2024
Year 2023
Earnings per share:
38)
Basic and diluted earnings per share (EPS)
Ordinary share
(0.03)
(0.07)
Savings share
(0.03)
(0.07)
of which:
from continuing assets attributable to owners of the Parent
ordinary share
—
(0.01)
savings share
—
(0.01)
of which:
from Discontinued operations/Non-current assets held for sale
attributable to owners of the Parent
ordinary share
(0.03)
(0.06)
savings share
(0.03)
(0.06)
TIM Group Consolidated
Financial Statements
Separate Consolidated Income Statements
282
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
Note 15
(million euros)
Year
2024
Year 2023
Profit (loss) for the year
(a)
(364)
(1,107)
Other components of the Consolidated Statement of Comprehensive
Income
Other items that will not be subsequently reclassified in the
Consolidated Statement of Comprehensive Income
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
9
3
Income tax effect
—
—
(b)
9
3
Remeasurements of employee defined benefit plans (IAS 19):
Actuarial gains (losses)
13
(8)
Income tax effect
—
—
(c)
13
(8)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Income tax effect
—
—
(d)
—
—
Total other components that will not be reclassified subsequently to
Separate Consolidated Income Statement
(e=b+c+d)
22
(5)
Other components that will be reclassified subsequently to Separate
Consolidated Income Statement
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
10
43
Loss (profit) transferred to Separate Consolidated Income Statement
(3)
(9)
Income tax effect
—
(1)
(f)
7
33
Hedging instruments:
Profit (loss) from fair value adjustments
(127)
(382)
Loss (profit) transferred to Separate Consolidated Income Statement
132
192
Income tax effect
(1)
45
(g)
4
(145)
Exchange differences on translating foreign operations:
Profit (loss) on translating foreign operations
(760)
189
Loss (profit) on translating foreign operations transferred to Separate
Consolidated Income Statement
—
—
Income tax effect
—
—
(h)
(760)
189
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Loss (profit) transferred to Separate Consolidated Income Statement
—
—
Income tax effect
—
—
(i)
—
—
Total other components that will be reclassified subsequently to
Separate Consolidated Income Statement
(k=f+g+h+i)
(749)
77
Total other components of the Consolidated Statements of
Comprehensive Income
(m=e+k)
(727)
72
Total comprehensive income (loss) for the year
(a+m)
(1,091)
(1,035)
Attributable to:
Owners of the Parent
(1,057)
(1,432)
Non-controlling interests
(34)
397
TIM Group Consolidated
Financial Statements
Consolidated Statements of Comprehensive
Income
283
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Movimenti dal 1° gennaio 2023 al 31 dicembre 2023
Equity attributable to owners of the Parent
(million euros)
Share
capital
Additional
paid-in capital
Reserve for
financial
assets
measured
at fair value
through
other
comprehen
sive income
Reserve for
hedging
instruments
Reserve for
exchange
differences
on
translating
foreign
operations
Reserve for
remeasurem
ents of
employee
defined
benefit plans
(IAS 19)
Share of
other
comprehen
sive
income
(loss) of
associates
and joint
ventures
accounted
for using
the equity
method
Other
reserves and
retained
earnings
(accumulate
d losses),
including
profit (loss)
for the year
Total
Non-controlling
interests
Total Equity
Balance at
December 31,
2022
11,614
2,133
(58)
65
(2,085)
(71)
—
3,463
15,061
3,664
18,725
Changes in equity
during the year:
Dividends
approved
—
—
—
—
—
—
—
—
—
(197)
(197)
Total
comprehensive
income (loss) for
the year
—
—
36
(145)
126
(8)
—
(1,441)
(1,432)
397
(1,035)
LTI granting of
treasury shares
6
—
—
—
—
—
—
(6)
—
—
—
Equity instruments
—
—
—
—
—
—
—
2
2
—
2
Other changes
—
(1,558)
—
—
—
—
—
1,573
15
3
18
Balance at
December 31,
2023
11,620
575
(22)
(80)
(1,959)
(79)
—
3,591
13,646
3,867
17,513
Movimenti dal 1° gennaio 2024 al 31 dicembre 2024 Note 15
Equity attributable to owners of the Parent
(million euros)
Share
capital
Additional
paid-in capital
Reserve for
financial
assets
measured
at fair value
through
other
comprehen
sive income
Reserve for
hedging
instruments
Reserve for
exchange
differences
on
translating
foreign
operations
Reserve for
remeasurem
ents of
employee
defined
benefit plans
(IAS 19)
Share of
other
comprehen
sive
income
(loss) of
associates
and joint
ventures
accounted
for using
the equity
method
Other
reserves and
retained
earnings
(accumulate
d losses),
including
profit (loss)
for the year
Total
Non-controlling
interests
Total Equity
Balance at
December 31,
2023
11,620
575
(22)
(80)
(1,959)
(79)
—
3,591
13,646
3,867
17,513
Changes in equity
during the year:
Dividends
approved
—
—
—
—
—
—
—
—
—
(158)
(158)
Total
comprehensive
income (loss) for
the year
—
—
16
4
(480)
13
—
(610)
(1,057)
(34)
(1,091)
NetCo
deconsolidation
—
—
—
—
—
—
—
—
—
(2,283)
(2,283)
LTI granting of
treasury shares
4
—
—
—
—
—
—
(4)
—
—
—
Other changes
—
(575)
—
—
—
—
—
(57)
(632)
12
(620)
Balance at
December 31,
2024
11,624
—
(6)
(76)
(2,439)
(66)
—
2,920
11,957
1,404
13,361
TIM Group Consolidated
Financial Statements
Consolidated Statement of Changes in Equity
284
CONSOLIDATED STATEMENT OF CASH FLOWS
(million euros)
note
s
Year
2024
Year
2023
Cash flows from operating activities:
Profit (loss) from continuing operations
83
(94)
Adjustments for:
Depreciation and amortization
3,189
3,292
Impairment losses (reversals) on non-current assets including
investments
94
(6)
Net change in deferred tax assets and liabilities
82
154
Losses (gains) realized on disposals of non-current assets (including
investments)
(73)
(35)
Share of losses (profits) of associates and joint ventures accounted for
using the equity method
20
29
Change in employee benefits
(12)
(264)
Change in inventories
(23)
(11)
Change in trade receivables and other net receivables
138
(5)
Change in trade payables
(80)
28
Net change in income tax receivables/payables
72
(12)
Net change in miscellaneous receivables/payables and other assets/
liabilities
(239)
417
Cash flows from (used in) operating activities
(a)
3,251
3,493
Cash flows from investing activities:
Purchases of intangible, tangible and rights of use assets on a cash
basis
(1,954)
(2,172)
Contributions for plants received
7
759
Acquisition of control of companies or other businesses, net of cash
acquired
(4)
19
Acquisitions/disposals of other investments
(34)
(49)
Change in financial receivables and other financial assets (excluding
hedging and non-hedging derivatives under financial assets)
(1)
2,897
(1,382)
Proceeds from sale that result in a loss of control of subsidiaries or
other businesses, net of cash disposed of
4,169
—
Proceeds from sale/repayments of intangible, tangible and other non-
current assets
280
3
Cash flows from (used in) investing activities
(b)
5,361
(2,822)
Cash flows from financing activities:
Change in current financial liabilities and other
(862)
241
Proceeds from non-current financial liabilities (including current
portion)
1,886
4,037
Repayments of non-current financial liabilities (including current
portion)
(8,431)
(4,308)
Changes in hedging and non-hedging derivatives
319
68
Share capital proceeds/reimbursements (including subsidiaries)
—
—
Dividends paid(*)
(159)
(273)
Changes in ownership interests in consolidated subsidiaries
(8)
(6)
Cash flows from (used in) financing activities
(c)
(7,255)
(241)
Cash flows from (used in) Discontinued operations/Non-current assets
held for sale
(d)
(1,244)
(1,091)
Aggregate cash flows
(e=a+b+c+d)
113
(661)
Net cash and cash equivalents at beginning of the year
(f)
2,912
3,555
Net foreign exchange differences on net cash and cash equivalents
(g)
(101)
18
Net cash and cash equivalents at end of the year
(h=e+f+g)
2,924
2,912
(*) of which from related parties
13
40
(1) This item includes investments in marketable securities amounting to 2,295 million euros in 2024 (2,342 million euros in 2023) and redemptions
of marketable securities amounting to (2,673) million euros in 2024((1,995) million euros in 2023), relating to TIM S.A. and Telecom Italia Finance
S.A..
TIM Group Consolidated
Financial Statements
Consolidated Statement of Cash Flows
285
Purchases of intangible, tangible and rights of use assets
(milioni di euro)
notes
Year
2024
Year
2023
Purchase of intangible assets
5)
(855)
(838)
Purchase of tangible assets
6)
(1,194)
(1,278)
Purchase of right of use assets
7)
(800)
(716)
Total purchases of intangible, tangible and rights of use assets on an
accrual basis(*)
(2,849)
(2,832)
Change in payables arising from purchase of intangible, tangible and
rights of use assets
895
660
Total purchases of intangible, tangible and rights of use assets on a
cash basis
(1,954)
(2,172)
(*) of which from related parties
13
40
Additional Cash Flow information
(million euros)
Year
2024
Year
2023
Income taxes (paid) received
(30)
(71)
Interest expense paid
(1,839)
(1,931)
Interest income received
553
718
Dividends received
19
20
Analysis of Net Cash and Cash Equivalents
(million euros)
Year
2024
Year
2023
Net cash and cash equivalents at beginning of the year:
Cash and cash equivalents
2,912
3,555
Bank overdrafts repayable on demand
—
—
2,912
3,555
Net cash and cash equivalents at end of the year:
Cash and cash equivalents
2,924
2,912
Bank overdrafts repayable on demand
—
—
2,924
2,912
The supplementary disclosures required by IAS 7 are provided in Note 17 "Net financial debt".
TIM Group Consolidated
Financial Statements
Consolidated Statement of Cash Flows
286
NOTE 1
FORM, CONTENT AND OTHER GENERAL
INFORMATION
Form and content
Telecom Italia S.p.A. (the “Parent Company”), also known in short as “TIM S.p.A.”, and its subsidiaries form the
“TIM Group” (the “Group”).
TIM is a joint-stock company (S.p.A.) organized under the laws of the Republic of Italy.
The registered offices of the Parent, TIM, are located in Milan, Italy at Via Gaetano Negri 1.
The duration of TIM S.p.A., as stated in the company’s bylaws, extends until December 31, 2100.
The TIM Group operates mainly in Europe, the Mediterranean Basin and South America.
The Group is engaged principally in the communications sector and, particularly, the fixed and mobile national
and international telecommunications sector.
The TIM Group’s Consolidated Financial Statements at December 31, 2024, have been prepared on a going
concern basis (further details are provided in the Note “Accounting Policies”) and in accordance with the
recognition and measurement criteria of the International Financial Reporting Standards issued by the
International Accounting Standards Board and endorsed by the European Union (designated as “IFRS”), as well
as laws and regulations in force in Italy.
In 2024, the Group adopted accounting policies consistent with those of the previous year, except for the
changes to the accounting standards issued by the IASB and in force as of January 1, 2024. See the Note
“Accounting Policies” for more details.
The consolidated financial statements have been prepared under the historical cost convention, except for
financial assets measured at fair value through other comprehensive income, financial assets measured at fair
value through profit and loss, and derivative financial instruments, which have been measured at fair value.
The carrying amounts of hedged assets and liabilities have been adjusted to reflect the changes in fair value of
the hedged risks (fair value hedge).
It should also be noted that the economic results of the assets relating to TIM's fixed network (primary network
and wholesale business), FiberCop S.p.A. and Telenergia S.r.l. ("NetCo"), the disposal of which was finalized on
July 1, 2024, are classified under IFRS 5 as Available-for-sale Assets, as all the conditions, including obtaining
the authorizations, necessary for the completion of the disposal have been met.
In accordance with IAS 1 (Presentation of Financial Statements) comparative information included in the
consolidated financial statements refers, unless otherwise indicated, to the previous year.
In addition, NetCo’s reclassification as an Available-for-sale Asset has led to a reclassification of the
corresponding figures for 2023 in the separate consolidated income statement and in the consolidated cash
flow statement, as required by IFRS 5. In addition, as permitted by IFRS 5, the profit and loss and balance sheet
totals relating to continuing operations also include the values of any held-for-sale assets (FiberCop and
Telenergia).
Finally, it should be noted that the effects arising from the NetCo transaction are shown separately in the 2024
changes in balance sheet items ("Discontinued Operations").
For details on the NetCo transaction, please refer to the description in Note 14 "Discontinued operations/non-
current assets held for sale."
The TIM Group’s consolidated financial statements at December 31, 2024 are presented in euros (rounded to
the nearest million, unless otherwise indicated).
The publication of the consolidated financial statements for the year ended December 31, 2024 of the TIM
Group was approved by resolution of the Board of Directors on March 5, 2025.
Financial statement formats
The financial statement formats adopted are consistent with those indicated in IAS 1. More specifically:
■
the Consolidated Statements of Financial Position has been prepared by classifying assets and liabilities
according to the “current and non-current” criterion;
■
the Separate Consolidated Income Statements have been prepared by classifying operating costs by
nature of expense as this form of presentation is considered more appropriate and representative of the
specific business of the Group, conforms to internal reporting, and is in line with the TIM Group’s industrial
sector.
In addition to EBIT or Operating profit (loss), the Separate Consolidated Income Statements include the
alternative performance measure of EBITDA or Operating profit (loss) before depreciation and amortization,
Capital gains (losses) and Impairment reversals (losses) on non-current assets.
In particular, besides EBIT, EBITDA is used by TIM as the financial target in internal presentations (business
plans) and in external presentations (to analysts and investors). This indicator represents a useful unit of
measurement for assessing the operating performance of the Group (as a whole and at Business Unit level).
TIM Group Consolidated
Financial Statements
Note 1
Form, content and other general information
287
EBIT and EBITDA are calculated as follows:
Profit (loss) before tax from continuing operations
+ Finance expenses
- Finance income
+/- Other expense (income) from investments
+/- Share of losses (profits) of associates and joint ventures accounted for using the equity
method
EBIT – Operating profit
+/- Impairment losses (reversals) of non-current assets
+/- c) Capital losses (gains) from non-current assets
+ Depreciation and amortization
EBITDA - Operating profit (loss) before depreciation and amortization, capital gains (losses) and impairment reversals
(losses) on non-current assets
■
the Consolidated statements of comprehensive income include the profit or loss for the year as shown in
the Separate Consolidated Income Statement and all other non-owner changes in equity;
■
the Consolidated Statement of Cash Flows have been prepared by presenting cash flows from operating
activities according to the “indirect method”, as permitted by IAS 7 (Statement of Cash Flows).
Furthermore, as required by Consob Resolution 15519 of July 27, 2006, in the separate consolidated income
statement, income and expenses relating to transactions which by nature do not occur during normal
operation (non-recurring transactions) have been specifically identified and their impacts on the main
intermediate levels have been shown separately, when they are significant. Specifically, non-recurring income/
(expenses) include, for instance: income/expenses arising from the sale of property, plant and equipment,
business segments and investments; expenses stemming from company reorganization and streamlining
processes and projects, also in connection with corporate transactions (mergers, spin-offs, etc.); expenses
resulting from litigation and regulatory sanctions and related liabilities; other provisions and related reversals;
costs for the settlement of disputes other than regulatory disputes; adjustments, realignments and other non-
recurring items, also relating to previous years; impairment losses on goodwill and/or other intangible and
tangible assets.
Also in reference to the above Consob Resolution, the amounts relating to balances or transactions with
related parties have been shown separately in the consolidated financial statements.
Segment reporting
An operating segment is a component of an entity:
■
that engages in business activities from which it may earn revenues and incur expenses (including
revenues and expenses relating to transactions with other components of the same entity);
■
whose operating results are regularly reviewed by the entity’s chief operating decision maker to make
decisions about resources (for the TIM Group, the Board of Directors of the Parent) to be allocated to the
segment and assess its performance; and
■
for which separate financial information is available.
The TIM Group operating segments are in line with and continuing on from the information given in the
Consolidated Annual Financial Report at December 31, 2023, are represented for the part relating to the
telecommunications business, on the basis of the related geographic location (Domestic and Brazil). It should
also be noted that the economic results of the assets relating to TIM's fixed network (primary network and
wholesale business), FiberCop S.p.A. and Telenergia S.r.l. ("NetCo"), the disposal of which was finalized on July
1, 2024, are classified under IFRS 5 as Available-for-sale Assets, as all the conditions, including obtaining the
authorizations, necessary for the completion of the disposal have been met.
The term “operating segment” is considered synonymous with “Business Unit”.
The operating segments of the TIM Group are as follows:
■
Domestic: includes the activities in Italy relating to voice and data services on fixed and mobile networks
for end users (retail) and other operators (MVNOs), the activities of the Telecom Italia Sparkle Group which,
at international level (in Europe, the Mediterranean and South America), develops fiber optic networks for
wholesale customers, the operations of Noovle S.p.A. (Cloud and Edge Computing solutions), the activities
of Olivetti (products and services for Information Technology), and, Domestic sector support structures.
■
Brazil: includes mobile and fixed telecommunications operations in Brazil (TIM S.A.);
■
Other operations: include the financial companies (Telecom Italia Capital S.A. and Telecom Italia Finance
S.A.) and other minor companies not strictly related to the TIM Group's core business.
The TIM Group has embarked on a transformation process which aims to overcome the Group’s vertically
integrated model by forming separate entities with different industrial and economic focuses. To date, these
entities cannot be considered an “operating segment” within the meaning of IFRS 8 – Operating Segments,
since these are still in an analytical design and subsequent implementation phase and, therefore, do not have
a detailed set of economic and financial information.
In the course of 2025, once the process described above has been completed, and also taking into account the
sale of NetCo on July 1, 2024, an assessment will be carried out to identify the operating segments in
accordance with IFRS 8, with reference to the specific indications provided for by the standard itself (autonomy
of operating flows, methods of allocating financial resources, management reporting, etc.).
TIM Group Consolidated
Financial Statements
Note 1
Form, content and other general information
288
NOTE 2
ACCOUNTING POLICIES
Going concern
The Consolidated Financial Statements for the year 2024 have been prepared on a going concern basis, as
there is the reasonable expectation that TIM will continue conducting its business in the foreseeable future
(and, in any event, over a period of at least twelve months).
In particular, the following factors have been taken into consideration:
■
the main risks and uncertainties (that are for the most part of an external nature) to which the Group and
the various activities of the TIM Group are exposed:
•
variations in business conditions, also related to competition;
•
technological risks such as cyber security, ICT network development and maintenance, artificial
intelligence;
•
financial risks (interest rate and/or exchange rate trends, changes in the Group’s credit rating by rating
agencies);
•
macroeconomic changes in the Italian, European and Brazilian markets and financial market volatility
due to inflationary risks;
•
risks in the supply chain of products and services including the exclusive wholesale supply of
connectivity by the supplier FiberCop;
•
changes in the legislative and regulatory context (changes in prices and tariffs or decisions that may
influence technological choices); and
•
the outcome of the legal and regulatory authority proceedings;
■
the optimal mix between risk capital and debt capital, as well as the policy for the remuneration of risk
capital, as described in the section “Share capital information” under the Note “Equity”;
■
the policy for financial risk management (market risk, credit risk and liquidity risk), as described in the Note
"Financial risk management".
Based on these factors, the Management believes that, at the present time, there are no elements of
uncertainty regarding the Group’s ability to continue as a going concern.
Principles of consolidation
The consolidated financial statements include the financial statements of all subsidiaries from the date on
which control over such subsidiaries commences until the date on which control ceases.
The date of all the subsidiaries' financial statements coincides with that of the Parent company, TIM.
Control exists when the Parent company TIM S.p.A. has all the following:
■
decision-making power over the investee, which includes the ability to direct the relevant activities of the
investee, i.e. the activities that significantly affect the investee's returns;
■
entitlement to the variable profits or losses commensurate with its shareholding in the investee;
■
the ability to use its decision-making to determine the amount of the returns relating to its shareholding in
the entity.
TIM assesses whether it controls an investee if facts and circumstances indicate that there are changes in one
or more of the three control elements.
In the preparation of the consolidated financial statements, the global amounts of the assets, liabilities, costs
and revenues of the consolidated companies are recognized on a line-by-line basis, while the share of equity
and the year's result of non-controlling interest is recognized is disclosed separately under appropriate items in
the consolidated statements of financial position, in the separate consolidated income statement and in the
consolidated statements of comprehensive income.
Under IFRS 10 (Consolidated financial statements), the comprehensive loss (including the profit or loss for the
year) is attributed to the owners of the parent and to non-controlling interest even when the equity of non-
controlling interest has a deficit balance.
All intragroup balances and transactions and any gains and losses arising from intragroup transactions are
eliminated in consolidation.
The carrying amount of the investment in each subsidiary is eliminated against the corresponding share of
equity in each subsidiary, after adjustment, if any, to fair value at the date of acquisition of control. At that
date, goodwill is recorded as an intangible asset, as described below, whereas any profit from a bargain
purchase (or negative goodwill) is recognized in the separate consolidated income statement.
All the assets and liabilities expressed in currencies other than euro of foreign consolidated entities that are
included in the consolidation are translated using the exchange rates in effect at the reporting date (the
current exchange rate method), while the related revenues and costs are translated at the average exchange
rates for the year. Exchange differences resulting from the application of this method are classified as equity
until the entire disposal of the investment or upon loss of control of the foreign subsidiary. Upon partial
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
289
disposal, without losing control, the proportionate share of the cumulative amount of exchange differences
related to the disposed interest is recognized as non-controlling interest equity. The cash flows of foreign
consolidated subsidiaries expressed in currencies other than euro included in the consolidated statements of
cash flows are translated into euro at the average exchange rates for the year.
Goodwill and fair value adjustments arising from the allocation of the purchase price of a foreign entity are
recorded in the relevant foreign currency and are translated using the year-end exchange rate.
Under IFRS 10, changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. In such circumstances, the carrying amounts of controlling and non-
controlling interests shall be adjusted to reflect the changes in their related interests in the subsidiary. Any
difference between the amount by which the non-controlling interest is adjusted and the fair value of the
consideration paid or received shall be recognized directly in equity and attributed to the owners of the parent.
Under IFRS 10, the parent company in case of loss of control of a subsidiary:
■
derecognizes:
•
the assets (including any goodwill) and the liabilities;
•
the carrying amount of any non-controlling interest;
■
recognizes:
•
the fair value of any consideration received;
•
the fair value of any residual investment retained in the former subsidiary;
•
any profit or loss resulting from the transaction, in the separate consolidated income statement;
•
the reclassification to the separate consolidated income statement of the amounts previously
recognized in other comprehensive income in relation to the subsidiary.
In the consolidated financial statements, investments in associates and joint ventures are accounted for using
the equity method, as provided, respectively, by IAS 28 (Investments in Associates and Joint Ventures) and
IFRS 11 (Joint Arrangements).
Associates are enterprises in which the Group holds at least 20% of the voting rights or exercises significant
influence, but no control or joint control over their financial and operating policies.
A joint venture is a joint control arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the entity.
Joint control is the contractually agreed sharing of control of a business that exists only when decisions about
the relevant business require the unanimous consent of the parties sharing control.
Associates and joint ventures are included in the consolidated financial statements from the date on which
significant influence or joint control commences until the date on which significant influence or joint control
ceases.
Under the equity method, on initial recognition the investment in an associate or joint venture is recognized at
cost, and the carrying amount is increased or decreased to recognize the investor's share of the profit or loss of
the investee after the date of acquisition. The investor’s share of the investee’s profit or loss is recognized in
the separate consolidated income statement. Dividends received from an investee reduce the carrying amount
of the investment.
Adjustments to the carrying amount may also be necessary for changes in the investee's other comprehensive
income (i.e. those arising from foreign exchange translation differences). The investor’s share of those changes
is recognized in the investor’s other comprehensive income.
If an investor's share of losses of an associate or a joint venture equals or exceeds its interest in the associate
or joint venture, the investor discontinues recognizing its share of further losses. After the investor's interest is
reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the
investor has incurred legal or constructive obligations or made payments on behalf of the associate or joint
venture. If the associate or joint venture subsequently reports profits, the investor resumes recognizing its
share of those profits only after its share of the profits equals the share of losses not recognized.
Any other long-term interests (some types of preference shares and long-term loans) in an associate or joint
venture are measured in accordance with IFRS 9.
Gains and losses resulting from "upstream" and "downstream" transactions between an investor (including its
consolidated subsidiaries) and its associate or joint venture are recognized in the investor's financial
statements only to the extent of unrelated investors' interests in the associate or joint venture.
The investor's share of profits and losses of the associate or joint venture arising from said transactions is
eliminated.
Intangible assets
Goodwill
In accordance with IFRS 3 (Business Combinations), goodwill is recognized in the financial statements at the
date of acquisition of control of a business and is determined as the excess of (a) over (b), as follows:
a)
the aggregate of:
▪
the consideration transferred (measured in accordance with IFRS 3; it is generally recognized on the
basis of the fair value at the acquisition date);
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▪
the amount of any non-controlling interest in the acquiree measured proportionally to the non-
controlling interest share of the acquiree's identifiable net assets shown at the related fair value;
▪
in a business combination achieved in stages, the acquisition date fair value of the acquirer's previously
held equity interest in the acquiree;
b)
the fair value of the identifiable assets acquired net of the identifiable liabilities assumed, measured at the
date of acquisition of control.
IFRS 3 requires, inter alia, the following:
▪
incidental costs incurred in connection with a business combination to be charged to the separate
income statements;
▪
in a business combination achieved in stages, the acquirer to remeasure its previously held equity
interest in the acquiree at its fair value at the date of acquisition of control and recognize the resulting
gain or loss, if any, in the separate income statements.
Goodwill is classified in the statement of financial position as an intangible asset with an indefinite useful life.
Goodwill initially recognized is subsequently reduced only by cumulative impairment losses (for more details,
see the section "Impairment of intangible assets, tangible assets and rights of use assets - Goodwill", below). In
case of loss of control of a subsidiary, the related amount of goodwill is taken into account in calculating the
gain or loss on disposal.
Development costs
Costs incurred internally for the development of new products and services represent either intangible assets
(mainly costs for software development) or tangible assets. These costs are capitalized only when all the
following conditions are satisfied: i) the cost attributable to the development phase of the asset can be
measured reliably, ii) there is the intention, the availability of financial resources and the technical ability to
complete the asset and make it available for use or sale, and iii) it can be demonstrated that the asset will be
able to generate future economic benefits. Capitalized development costs comprise only incurred expenditures
that can be attributed directly to the development process for new products and services.
Capitalized development costs are depreciated/amortized systematically over the estimated product or service
life, so that the depreciation/amortization method reflects the way in which the asset's future economic
benefits are expected to be consumed by the entity.
Other intangible assets with a finite useful life
Other purchased or internally-generated intangible assets with a finite useful life are recognized as assets, in
accordance with IAS 38 (Intangible Assets), when the use of the asset is likely to generate future economic
benefits and when the cost of the asset can be reliably measured.
Such assets are recorded at purchase or production cost and amortized on a straight-line basis over their
estimated useful lives; the amortization rates are reviewed annually and revised if the current estimated useful
life is different from that estimated previously. The effect of such changes is recognized prospectively in the
separate consolidated income statement.
Tangible assets
Property, plant and equipment
Property, plant and equipment are recognized at purchase or production cost. Subsequent expenditures are
capitalized only if they increase the future economic benefits embodied in the related item of property, plant
and equipment. All other expenditures are recognized in the separate consolidated income statement as
incurred.
The cost of these assets also includes the expected costs of dismantling the asset and restoring the site, if a
legal or constructive obligation exists. The corresponding liability is recognized at its present value as a
provision in the statement of financial position. The recognition in the separate consolidated income statement
of the capitalized expenditure is done over the useful life of the related tangible assets through their
depreciation.
The calculation of estimates for dismantling costs, discount rates and the dates in which such costs are
expected to be incurred is reviewed annually at each financial year-end. Changes in the above liability must be
recognized as an increase or decrease of the cost of the related asset; the amount deducted from the cost of
the asset must not exceed its carrying amount. The excess, if any, is recorded immediately in the separate
consolidated income statement, conventionally under the line item "Depreciation and Amortization".
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets.
Depreciation rates are reviewed annually and revised if the current estimated useful life is different from that
estimated previously. The effect of such changes is recognized prospectively in the separate consolidated
income statement.
Land, including land pertaining to buildings, is not depreciated.
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Rights of use assets
In accordance with IFRS 16, lease liabilities are presented through the recognition of a financial liability in the
statement of financial position consisting in the present value of future lease payments, against the
recognition of the right of use of the leased asset.
On the commencement date of the lease, the right of use is recognized at cost including: the amount of the
initial measurement of the lease liability, any lease payments made at or before the commencement date,
initial direct costs incurred for the signature of the lease and the present value of the estimated restoration
and dismantling costs set out in the lease, less any incentives.
Subsequently, the right of use is amortized over the term of the lease (or the useful life of the asset, if lower),
subject to impairment and adjusted for any remeasurement of the lease liability.
The TIM Group attracts, under the scope of application of IFRS 16, if the criteria and the requirements laid down
by the standard are met, the contract types concerning cloud software resources and the spectrum of
transmission frequencies on optic fiber carriers. This approach is functional to the very innovative specificity of
these types of contract, concerning hardware infrastructure and optical transmission as well as
technologically-advanced software services.
Capitalized borrowing costs
Under IAS 23 (Borrowing Costs), the Group capitalizes borrowing costs only if they are directly attributable to
the acquisition, construction or production of an asset that takes a substantial period of time (conventionally
more than 12 months) to get ready for its intended use or sale.
Capitalized borrowing costs are recorded in the separate consolidated income statement and deducted
directly from the “finance expenses” line item to which they relate.
Impairment of intangible, tangible and rights of use assets
Goodwill
Goodwill is tested for impairment at least annually or more frequently whenever events or changes in
circumstances indicate that goodwill may be impaired, as set forth in IAS 36 (Impairment of Assets); however,
when the conditions that gave rise to an impairment loss no longer exist, the original amount of goodwill is not
reinstated.
The test is generally conducted at the end of every year, so the date of testing is the year-end closing date of
the financial statements. Goodwill acquired and allocated during the year is tested for impairment at the end
of the year in which the acquisition and allocation took place.
For the purpose of verifying its recoverability, goodwill is allocated, from the acquisition date, to each of the
cash-generating units, or groups of cash-generating units, that is expected to benefit from the acquisition.
If the carrying amount of the cash-generating unit (or group of cash-generating units) exceeds the recoverable
amount, an impairment loss is recognized in the separate consolidated income statement. The impairment
loss is first recognized as a deduction of the carrying amount of goodwill allocated to the cash-generating unit
(or group of cash-generating units) and only subsequently applied to the other assets of the cash-generating
unit in proportion to their carrying amount, up to the recoverable amount of the assets with a finite useful life.
The recoverable amount of a cash-generating unit (or group of cash-generating units) to which goodwill is
allocated is the higher between the fair value less costs to sell and its value in use.
The fair value net of disposal costs is estimated on the basis of the income approach, insofar as this allows for
the reflection of the benefits deriving from a new, different business structure in the future. In particular, the
fair value net of disposal costs is based on the current value of the forecast cash flow, applying a discounting
rate that reflects current market assessments of the time value of money and the risks specific to the asset.
The future cash flows are those arising from an explicit time horizon between three and five years, as well as
those extrapolated to estimate the terminal value.
In calculating the value in use, the estimated future cash flows are discounted to present value using a
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. The future cash flows are those arising from an explicit time horizon between three and five years, as
well as those extrapolated to estimate the terminal value. The long-term growth rate used to estimate the
terminal value of the cash-generating unit (or group of cash-generating units) is assumed not to be higher
than the average long-term growth rate of the segment, country or market in which the cash-generating unit
(or group of cash-generating units) operates.
The value in use of cash-generating units denominated in foreign currency is estimated in the local currency by
discounting cash flows to present value on the basis of an appropriate rate for that currency. The present value
obtained is translated to euro at the spot rate on the date of the impairment test (in the case of the TIM Group,
the closing date of the financial statements).
Future cash flows are estimated by referring to the current operating conditions of the cash-generating unit (or
group of cash-generating units) and, therefore, do not include either benefits originating from future
restructuring for which the entity is not yet committed, or future investments for the improvement or
optimization of the cash-generating unit.
For the purpose of calculating impairment, the carrying amount of the cash-generating unit is established
based on the same criteria used to determine the recoverable amount of the cash-generating unit, excluding
surplus assets (that is, financial assets, deferred tax assets and net non-current assets held for sale) and
includes the goodwill attributable to non-controlling interest (minority shareholders).
After conducting the goodwill impairment test for the cash-generating unit (or groups of cash-generating
units), a second level of impairment testing is carried out which includes the corporate assets which do not
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generate positive cash flows and which cannot be allocated by a reasonable and consistent criterion to the
single units. At this second level, the total recoverable amount of all cash-generating units (or groups of cash-
generating units) is compared to the carrying amount of all cash-generating units (or groups of cash-
generating units), including also those cash-generating units to which no goodwill was allocated, and the
corporate assets.
Tangible and intangible assets with finite useful lives and rights of use
assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset –
whether intangible or tangible with finite useful lives or a right of use – may be impaired. Both internal and
external sources of information are used for this purpose. Internal sources include: obsolescence or physical
deterioration, and significant changes in the use of the asset and the operating performance of the asset
compared to estimated performance. External sources include: External sources include the market value of
the asset, any changes in technology, markets or laws, trends in market interest rates and the cost of capital
used to evaluate investments, and an excess of the carrying amount of the net assets of the Group over
market capitalization.
If there is any indication that an asset – whether tangible or intangible with finite useful lives or a right of use –
has been impaired, then its carrying amount is reduced to its recoverable amount. The recoverable amount is
the higher of an asset's fair value less costs to sell, and its value in use. In calculating the value in use, the
estimated future cash flows are discounted to present value using a discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or right. If it is not possible to
estimate the recoverable amount, the Group estimates the recoverable amount of the cash-generating unit to
which the asset belongs. Impairment losses are recognized in the separate consolidated income statement.
When the reasons for the impairment subsequently cease to exist, the carrying value of the asset/right-of-use
or of the cash generating unit is increased up to the new estimate of the recoverable amount which, however,
cannot exceed the amount that would have been determined had no impairment loss been recognized. The
reversal of an impairment loss is recognized as income in the separate consolidated income statement.
Financial instruments
Business models for financial assets management
For the management of trade receivables, TIM Group Management has identified different business models
based on the specific nature of the receivables, the type of counterparty and collection times. This was in order
to optimize the management of working capital through the constant monitoring of the payment performance
of customers, the steering of credit collection policies, and the management of programs for the disposal of
receivables, and the activation of factoring consistent with financial planning requirements.
The business models adopted are:
■
Hold to Collect: receivables usually held to maturity, such as trade receivables due from large customers
and the OLOs for the Domestic Business Unit, and all receivables for the Brazil Business Unit; these
instruments fall within the IFRS 9 category “Assets measured at amortized cost”. These receivables can be
transferred, albeit not recurrently, if this is needed to optimize finances;
■
Hold to Collect and Sell: receivables usually traded massively and on a recurring basis, such as, for the
Domestic Business Unit, receivables due from active consumer, small and business customers held for
sale; these instruments fall under IFRS 9 category "Financial assets measured at fair value through other
comprehensive income". As required by IFRS 9, the related reserve is reversed to the separate consolidated
income statement when disposed of or impaired.
As part of managing financial assets other than trade receivables, the TIM Group's Management identified its
business models on the basis of how the financial instruments are managed and how their cash flows are
used. This is done to ensure an adequate level of financial flexibility and to best manage, in terms of risks and
returns, the financial resources immediately available through the treasuries of Group companies and in
accordance with the strategies set forth by the Parent TIM.
The business models adopted are:
■
Hold to Collect: financial instruments used to absorb temporary cash surpluses; such instruments are low
risk and mostly held to maturity; they are measured at amortized cost;
■
Hold to Collect and Sell: monetary or debt instruments used to absorb short/medium-term cash surpluses;
such instruments are low risk and generally held to maturity, or otherwise sold to cover specific cash
requirements; they are measured at fair value through other consolidated comprehensive income;
■
Hold to Sell: monetary, debt and equity trading instruments used to dynamically manage cash surpluses
not managed under the business models identified above; such instruments are higher risk and traded
repeatedly over time; they are measured at fair value through the separate consolidated income
statement.
Other investments
Other investments (other than those in subsidiaries, associates and joint ventures) are classified as non-current
or current assets if they will be kept in the Group's portfolio for a period of more or not more than 12 months,
respectively.
Other investments are classified as “financial assets measured at fair value through consolidated profit or
loss” (FVTPL), as current assets.
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At the purchase time of each investment, IFRS 9 provides for the irrevocable option to recognize these
investments in "financial assets measured at fair value through other consolidated comprehensive
income" (FVTOCI) as non-current or current assets.
The other investments classified as “financial assets measured at fair value through other comprehensive
income” are measured at fair value; changes in the fair value of these investments are recognized in a special
equity reserve under the other components of the statements of comprehensive income (Reserve for financial
assets measured at fair value through other comprehensive income), without reclassification to the separate
income statements when the financial asset is disposed of or impaired. Dividends are recognized in the
separate consolidated income statement.
Changes in the value of other investments classified as "financial assets at fair value through profit or loss" are
recognized directly in the separate consolidated income statement.
Securities other than investments
Securities other than investments, included among non-current or current assets, depending on the business
model adopted and the contractual flows envisaged, fall among financial assets measured at amortized cost,
or measured at fair value through other comprehensive income or at fair value though profit or loss.
Securities other than investments classified as current assets are those that, by decision of the directors, are
intended to be kept in the Group’s portfolio for a period of not more than 12 months, and are classified:
■
as “financial assets measured at amortized cost” (AC) when held to maturity (originally more than 3
months but less than 12 months, or, although they had an original maturity of more than 12 months, they
have been bought in a period during which maturity was included between 3 and 12 months);
■
as "financial assets measured at fair value through other consolidated comprehensive income" (FVTOCI)
when held in the scope of a business model whose objective is to sell the financial asset and/or collect the
contractual cash flows. The consolidated "Reserve for financial assets measured at fair value through other
comprehensive income" is reversed to the separate consolidated income statement when the financial
asset is disposed of or impaired;
■
as “financial assets measured at fair value through consolidated profit or loss" (FVTPL) in the other cases.
Cash and cash equivalents
Cash and cash equivalents are recorded, according to their nature, at nominal value or amortized cost.
Cash equivalents are short-term and highly liquid investments that are readily convertible to known amounts
of cash, subject to an insignificant risk of change in value and their original maturity or the remaining maturity
at the date of purchase does not exceed 3 months.
Impairment of financial assets
At every closing date, assessments are made as to whether there is any objective evidence that a financial
asset or a group of financial assets has been impaired.
The impairment of financial assets is based on the expected credit loss model.
Specifically:
■
impairment on trade receivables and on contract assets is carried out using the simplified approach that
involves estimating the loss expected over the life of the receivable at the time of initial recognition and on
subsequent measurements. For each customer segment, the estimate is principally made by calculating
the average expected uncollectibility, based on historical and statistical indicators, possibly adjusted using
forward-looking elements. For some categories of receivables characterized by specific risk elements,
specific measurements are made on individual credit positions;
■
the impairment of financial assets other than trade receivables is calculated on the basis of a general
model which estimates expected credit losses over the following 12 months or over the residual life of the
asset in the event of a substantial worsening of its credit risk.
Derivatives
As allowed by IFRS 9, the TIM Group decided to continue to apply the hedge accounting provisions contained in
IAS 39 instead of those of IFRS 9.
Derivatives are used by the TIM Group to manage its exposure to exchange rate and interest rate risks and to
diversify the parameters of debt, so that costs and volatility can be reduced within pre-established operational
limits.
In accordance with IAS 39, derivative financial instruments qualify for hedge accounting only when:
■
at the inception of the hedge, the hedging relationship is formally designated and documented;
■
the hedge is expected to be highly effective;
■
its effectiveness can be reliably measured;
■
the hedge is highly effective throughout the financial reporting periods for which it is designated.
All derivative financial instruments are measured at fair value in accordance with IAS 39.
When derivative financial instruments qualify for hedge accounting, the following accounting treatment
applies:
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■
Fair value hedge – Where a derivative financial instrument is designated as a hedge of the exposure to
changes in fair value of an asset or liability due to a particular risk, the profit or loss from re-measuring the
hedging instrument at fair value is recognized in the separate consolidated income statement. The profit
or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item
and is recognized in the separate consolidated income statement.
■
Cash flow hedge – Where a derivative financial instrument is designated as a hedge of the exposure to
variability in cash flows of an asset or liability or a highly probable expected transaction, the effective
portion of any gain or loss arising from the fair value adjustment of the derivative financial instrument is
recognized directly in a specific equity reserve (Reserve for hedging instruments). The cumulative profit or
loss is removed from equity and recognized in the separate consolidated income statement during the
same business years in which the hedged transaction is recognized in the separate consolidated income
statement. The profit or loss associated with the ineffective portion of a hedge is recognized in the
separate consolidated income statement immediately. If the hedged transaction is no longer considered to
be probable, the gains or losses not yet realized included in the equity reserve are immediately recognized
in the separate consolidated income statement.
For derivatives for which a hedging relationship has not been designated, changes in value compared to initial
recognition are recognized directly in the separate consolidated income statement.
Financial liabilities
Financial liabilities include financial payables, including payables for advances on assignments of receivables
where the assignment does not transfer substantially all the risks and rewards, as well as other financial
liabilities, including derivative financial instruments and liabilities in respect of assets recognized under finance
leases recognized in accordance with IFRS 16.
In accordance with IFRS 9, they also include trade and other payables.
Trade payables also include supplier financing agreements. For more details about these agreements, see
Note 24 “Trade and miscellaneous payables and other current liabilities”.
Financial liabilities other than derivatives are initially recognized at fair value; and subsequently measured at
amortized cost.
Financial liabilities hedged by derivative instruments designed to manage exposure to changes in fair value of
the liabilities (fair value hedge derivatives) are measured at fair value in accordance with the hedge accounting
principles of IAS 39: the profits and losses deriving from subsequent fair value adjustments, only as regards the
covered component, are recognized in the separate consolidated income statement and counterbalanced by
the effective portion of the profit or loss deriving from the corresponding fair value measurements of the hedge
instrument.
Financial liabilities hedged by derivative instruments designed to manage exposure to variability in cash flows
(cash flow hedge derivatives) are measured at amortized cost in accordance with the hedge accounting
principles of IAS 39.
Transfer of receivables
The TIM Group transfers receivables through factoring and securitization agreements. These transfers, in the
majority of cases, are characterized by the transfer of substantially all the risks and rewards of ownership of
the receivables to third parties, therefore meeting the requirements of IFRS 9 for derecognition. Special service
agreements, under which the purchasers grant TIM S.p.A. a mandate to oversee the collection and
management of receivables, have been entered into to maintain the relationship between the Company and
its customers.
Inventories
Inventories are measured at the lower of purchase and production cost and estimated realizable value; the
cost is determined using the weighted average cost formula for each movement, while the estimated
realizable value is determined by observing general prices at the end of the year. Provision is made for obsolete
and slow-moving inventories based on their expected future use and estimated realizable value.
Non-current assets held for sale/Discontinued operations
Non-current assets held for sale or discontinued groups whose carrying amount will mainly be recovered
through sale, rather than through ongoing use, are classified as held for sale and shown separately from other
assets and liabilities in the consolidated statements of financial position. The corresponding amounts for the
previous year are not reclassified in the consolidated statements of financial position, but are instead shown
separately in a specific column for changes in assets and liabilities in the year in which non-current assets held
for sale or discontinued groups are classified as such.
Discontinued operations are a component of an entity that has been terminated or classified as held for sale
and that:
■
represents a major business line or geographical area of operation; or
■
is part of a single coordinated plan to discontinue a separate major line of business or geographical area of
operation; or
■
is a subsidiary acquired exclusively with a view to resale.
The results arising from Discontinued Operations – whether discontinued or classified as held for sale – are
shown separately in the separate consolidated income statement, net of tax effects. The corresponding values
for the previous periods, where present, are reclassified and reported separately in the separate consolidated
income statement, net of tax effects, for comparative purposes.
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Non-current assets held for sale or discontinued groups classified as held for sale are first recognized in
compliance with the appropriate IFRS applicable to each specific asset and liability, and subsequently
measured at the lower of the carrying amount and fair value, less cost to sell.
Any subsequent impairment losses are recognized as a direct adjustment to non-current assets (or
discontinued groups) classified as held for sale, with a contra-entry in the separate consolidated income
statement.
An upward revision of value is, instead, recognized for each subsequent increase in the fair value of an asset
less cost to sell, but not in excess of the previously recognized cumulative impairment loss.
As required by IFRS 5 (Non-current assets held for sale and discontinued operations), an entity shall not
depreciate (or amortize) non-current assets classified as held for sale or being part of a discontinued group.
Finance expenses and other expenses attributable to the liabilities of a discontinued group classified as held for
sale must continue to be recognized.
Employee benefits
Provision for employee severance indemnity
Employee severance indemnity, mandatory for Italian companies pursuant to Article 2120 of the Italian Civil
Code, is deferred compensation based on the employee's years of service and on the compensation earned by
the employee during the service period.
Under IAS 19 (Employee Benefits), the employee severance indemnity, so calculated, is considered a "Defined
benefit plan" and the related liability to be recognized in the statement of financial position (Provision for
employee severance indemnities) is determined by actuarial calculations.
The remeasurements of actuarial gains and losses are recognized in other components of the Consolidated
Statements of Comprehensive income. Service cost of Italian companies that employ less than 50 employees,
as well as interest expenses related to the "time value" component of the actuarial calculations (the latter
classified as Finance expenses), are recognized in the separate consolidated income statement.
Starting from January 1, 2007, the Italian Law gave employees the choice to either allocate their accruing
indemnity to supplementary pension funds or it as an obligation of the Company. Companies that employ at
least 50 employees must transfer the employee severance indemnity to the "Treasury fund" managed by
INPS, the Italian Social Security Institute. Consequently, the Group's obligation to INPS and the contributions to
supplementary pension funds take the form, under IAS 19, of "Defined contribution plans".
Equity compensation plans
The companies of the Group provide additional benefits to certain managers of the Group through equity
compensation plans (for example stock options and long-term incentive plans). The above plans are
recognized in accordance with IFRS 2 (Share-Based Payment).
In accordance with IFRS 2, such plans represent a component of the beneficiaries' compensation. Therefore, for
the plans that provide for compensation in equity instruments, the cost is represented by the fair value of such
instruments at the grant date, and is recognized in the separate consolidated income statement in "Employee
benefits expenses" over the period between the grant date and vesting date with a contra-entry to an equity
reserve denominated "Other equity instruments". Changes in the fair value subsequent to the grant date do
not affect the initial measurement. At the end of each year, adjustments are made to the estimate of the
number of rights that will vest up to maturity. The impact of the change in estimate is recorded as an
adjustment to "Other equity instruments" with a contra-entry to "Employee benefits expenses".
The portion of the plans that specifies the payment of compensation in cash is recognized in liabilities as a
contra-entry to "Employee benefits expenses"; at the end of each year such liability is measured at fair value.
Provisions
The Group records provisions for risks and charges when, having a current legal or constructive obligation to a
third party, as a result of a past event, an outflow of Group resources is likely to be required to meet that
obligation, and when the amount of the obligation can be estimated reliably. Provisions for risks and charges
also include those established in the event that the company should stipulate contracts that thereafter
became onerous, the non-discretionary costs of which necessary to fulfill the commitments made, exceeding
the economic benefits expected from such contracts.
If the effect of the time value is material, and the payment date of the obligations can be reasonably
estimated, provisions to be accrued are the present value of the expected cash flows, taking into account the
risks associated with the obligation. The increase in the provision due to the passage of time is recognized in
the separate consolidated income statement as "Finance expenses".
Government grants
Government grants are recognized when there is a reasonable certainty that they will be received and that the
Group will satisfy all the conditions established for their granting by the government, government agencies
and equivalent local, national or international entities.
Government grants are systematically recognized in the separate income statements over the periods in which
the Group recognizes the expenses that the grants are intended to offset as costs.
Government grants related to assets received for the acquisition and/or construction of non-current tangible
assets are recorded as deferred income in the statement of financial position and systematically credited to
the separate income statements over the useful life of the systems the grants relate to.
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
296
Treasury shares
Treasury shares are recognized as a deduction from equity. In particular, the treasury shares are reported as a
deduction from the share capital issued in the amount corresponding to the "accounting par value", that is the
ratio of total share capital and the number of issued shares, while the excess cost of acquisition over the
accounting par value is presented as a deduction from "Other reserves and retained earnings (accumulated
losses), including profit (loss) for the year".
Foreign currency transactions
Transactions in foreign currencies are recorded at the foreign exchange rate prevailing at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign
exchange rate prevailing at the statement of financial position date. Exchange differences arising from the
settlement of monetary items or from their conversion at rates different from those at which they were initially
recorded during the year or at the end of the prior year are recognized in the separate consolidated income
statement.
Revenues
Revenues are the gross inflows of economic benefits during the period arising in the course of the ordinary
activities of an entity. Amounts collected on behalf of third parties, such as sales taxes, goods and services
taxes and value added taxes, are not economic benefits which flow to the entity and do not result in increases
in equity. Therefore, they are excluded from revenues.
The process underlying the recognition of revenues follows the steps set out in IFRS 15:
■
identification of the contract: takes place when the parties approve the contract (with commercial
substance), and identify the respective rights and obligations: in other terms, the contract must be legally
binding, the rights to receive goods and/or services and the terms of payment can be clearly identified, and
the Group considers receipt of payment as probable;
■
identification of the performance obligations: the main performance obligations identified, i.e. promises
to transfer goods and services that are distinct, are services rendered (including voice and data traffic and
ICT solutions) to retail customers, services rendered to wholesale customers, and sale of products;
■
determination of the transaction price: this is the total amount contracted with the other party regarding
the entire contractual term; the Group has determined that the contractual term is the one arising from
the contractual obligations between the parties or, in lack of these obligations, it is by convention one
month;
■
allocation of the transaction price to the performance obligations: the allocation is made proportionately
to the respective stand-alone selling prices calculated based on the list prices (if present) or estimated by
applying an appropriate margin to the cost of purchase/production of the good/service.
Revenues from activating the connectivity service are not a performance obligation; they are therefore
allocated to the contractual performance obligations (typically to services).
For offerings which include the sale of devices and service contracts (bundle offerings), the Group allocates
the contractual transaction price to the performance obligations of the contract, proportionately to the
stand-alone selling prices of the single performance obligations;
■
recognition of revenues: revenues are stated net of discounts, allowances, and returns in connection with
the characteristics of the type of revenue:
•
Revenues from services rendered
Revenues from services rendered are recognized in the separate income statements according to the
stage of completion of the service, that is based on actual consumption.
Traffic revenues from interconnection and roaming are reported gross of the amounts due to other
TLC operators.
Revenues for delivering information or other content are recognized on the basis of the amount
invoiced to the customer, when the service is rendered directly by the Group. In the event that the
Group is acting as agent (for example, for non-geographic numbers) only the commission received
from the content provider is recognized as revenue.
Revenues from prepaid traffic are recorded on the basis of effective consumption. Deferred revenues
for traffic already collected but not yet consumed are recorded in “Trade and miscellaneous payables
and other current liabilities” in the consolidated statements of financial position.
Revenues for services rendered are generally invoiced and collected bimonthly/monthly for retail
customers while for wholesale customers, they are invoiced on a monthly basis and due 40 or 60 days
after the date of issue, depending on whether they relate to the mobile component (40 days) or fixed
component (60 days).
•
Revenues from sales
Revenues from sales (telephone products and others) are recognized upon delivery when control of the
assets is transferred to the customers.
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
297
The devices sold separately from the services are invoiced at the time of delivery; collection takes place
on demand or based on installment plans (up to 48 monthly installments). The devices sold as part of
bundle offerings are invoiced at the time of delivery and usually collected in 24, 30 or 48 monthly
installments, depending on the type of offer and customer cluster. With specific reference to the
mobile products (smartphones and tablets) and certain types of fixed-line products sold to consumer
customers, collection is made at the time of sale through the financial company TIMFin, which
disburses the loan to the customer.
The recognition of revenues can generate the recognition of an asset or liability deriving from contracts. In
particular:
•
Contract assets are the right to a consideration in exchange for goods or services that have been
transferred to the customer, when the right is conditioned on something other than the passage of
time;
•
Contract liabilities are the obligation to transfer goods or services to the customer for which the Group
has received (or for which it is due) a consideration from the customer.
Contract costs (incremental costs of obtaining a contract and costs to fulfill a contract; mainly technical
activation costs and costs for sales network commissions) are deferred and recognized through separate
consolidated income statement depending on the expected term of the contractual relationship with the
customers. The TIM Group avails of the practical expedient, permitted under IFRS 15, of recognizing the
incremental costs of obtaining a contract in the consolidated income statement if the amortization period is
one year or less.
The recoverability of contract assets and deferred costs is periodically assessed.
Research and advertising costs
Research and advertising costs are directly expensed to the separate consolidated income statement in the
year in which they are incurred.
Finance income and expenses
Finance income and expenses are recognized on an accrual basis and include: interest accrued on the related
financial assets and liabilities using the effective interest rate method; changes in the fair value of derivatives
and other financial instruments measured at fair value through the income statement; gains and losses on
foreign exchange and financial instruments (including derivatives).
Dividends
Dividends received from companies other than subsidiaries, associates and joint ventures are recognized in the
separate consolidated income statement on an accrual basis, i.e. in the year in which they become receivable
following the resolution by the shareholders' meeting for the distribution of dividends of the investee
companies.
Dividends payable to third parties are reported as a change in equity in the year in which they are approved by
the shareholders’ meeting.
Income tax expense (current and deferred)
Income tax expense includes all taxes calculated on the basis of the taxable income of the companies of the
Group.
Current and deferred income tax expense is calculated using all the elements and information available at the
reporting date, taking into account current laws and considering all the elements that could give rise to
uncertainties in the determination of the amounts due to the tax authorities, as provided for in IFRIC 23.
Income tax expense is recognized in the separate consolidated income statement, except to the extent that
they relate to items directly charged or credited to equity, in which case the related tax effect is recognized in
the relevant equity reserves. The amount of the income tax expense relating to each item included as "Other
components of the Consolidated Statements of Comprehensive income" is indicated in the Consolidated
Statement of comprehensive income.
The provisions for taxes that could arise from the remittance of the undistributed earnings of subsidiaries are
made only where there is the actual intention to remit such earnings.
Deferred tax liabilities/assets are recognized using the "Balance sheet liability method". They are calculated on
all the temporary differences that arise between the taxable base of assets and liabilities and the related
carrying amounts in the consolidated financial statements, except for differences arising from investments in
subsidiaries that are not expected to reverse in the foreseeable future. Deferred tax assets relating to unused
tax loss carryforwards are recognized to the extent that it is probable that future taxable income will be
available against which they can be utilized. Tax assets and liabilities are offset, separately for current and
deferred taxes, when income tax expense is levied by the same tax authority and when there is a legally
enforceable offsetting right. Tax assets and deferred tax liabilities are determined by adopting the tax rates
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
298
expected to be applicable in the respective jurisdictions of the countries in which the Group companies operate,
in the years in which those temporary differences are expected to be recovered or settled.
The other taxes not related to income are included in "Other operating expenses".
Earnings per share
Basic earnings per ordinary share is calculated by dividing the Group's profit attributable to ordinary shares by
the weighted average number of ordinary shares outstanding during the year, and excluding treasury shares.
Similarly, basic earnings per savings share is calculated by dividing the Group's profit attributable to savings
shares by the weighted average number of savings shares outstanding during the year.
For diluted earnings per ordinary share, the weighted average number of shares outstanding during the year is
adjusted by assuming the subscription of all the potential deriving shares - for example, by exercising rights on
shares with dilutive effects. The Group profit is also adjusted to reflect the impact of these transactions net of
the related tax effects.
Use of accounting estimates
The preparation of consolidated financial statements and related notes in conformity with IFRS requires
management to make estimates and assumptions based also on subjective judgments, past experience and
assumptions considered reasonable and realistic in relation to the information known at the time of the
estimate. Such estimates have an effect on the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, as well as on the amount of revenues
and costs during the year. Actual results could differ, even significantly, from those estimates owing to possible
changes in the factors considered in the determination of such estimates. Estimates are reviewed periodically.
The most significant accounting estimates that involve a high level of subjective assumptions and judgments
by directors are set out below.
Financial statements area
Accounting estimates
Goodwill impairment
The impairment test on goodwill is carried out by comparing the carrying amount of cash-
generating units and their recoverable amount. The recoverable amount of a cash-generating
unit is the higher of fair value, less costs to sell, and its value in use. This complex valuation
process entails the use of methods such as the discounted cash flow method, which uses
assumptions to estimate cash flows. The fair value net of disposal costs is based on the current
value of forecast cash flow, calculated using a discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. The recoverable
amount depends significantly on the discount rate used in the discounted cash flow model, as
well as the expected future cash flows and the growth rate used for the extrapolation. The
estimate of expected cash flows took into account the risks arising from climate change (as
explained in the section 'Main Risks and Uncertainties - Risks Related to Key Sustainability Issues'
in the Report on Operations), which at present do not have a significant impact on the Group's
business model. The key assumptions used to determine the recoverable amount for the
different cash-generating units, including a sensitivity analysis, are detailed in the Note
“Goodwill”.
Impairment of tangible and intangible assets
with finite useful lives and right of use assets
At the end of each reporting period, the Group assesses whether there is any indication that an
asset – whether tangible or intangible with finite useful lives or a right of use – has been
impaired. Both internal and external sources of information are used for this purpose.
Identifying the impairment indicators, estimating future cash flows and calculating the fair value
of each asset requires the Management to make significant estimates and assumptions in
calculating the discount rate to be used, and the useful life and residual value of the assets. The
estimate of expected cash flows took into account the risks arising from climate change (as
explained in the section 'Main Risks and Uncertainties - Risks Related to Key Sustainability Issues'
in the Report on Operations), which at present do not have a significant impact on the Group's
business model. These estimates can have a significant impact on the fair value of the assets
and on the amount of any impairment write-down.
Business combinations
The recognition of business combinations requires that assets and liabilities of the acquiree be
recorded at their fair value at the control acquisition date, as well as the possible recognition of
goodwill. These values are determined through a complex estimation process.
Lease liabilities and rights of use assets
The value of lease liabilities and corresponding rights of use is determined by calculating the
present value of the lease payments, also bearing in mind whether the renewal of the lease is
reasonably certain.
Capitalization/deferment of costs
The capitalization/deferment of internal and external costs is a process that entails elements of
estimation and valuation. Specifically, it involves the valuation of: i) the likelihood that capitalized
costs will be recovered through correlated future revenues; and ii) the effective increase in the
future economic benefits embodied in the related asset.
Provision for bad debts
Impairment on trade receivables and on contract assets is carried out using the simplified
approach that involves estimating the loss expected over the life of the receivable at the time of
initial recognition and on subsequent measurements. For each customer segment, the estimate
is principally made by calculating the average expected uncollectibility, based on historical and
statistical indicators, possibly adjusted using forward-looking elements. For some categories of
receivables characterized by specific risk elements, specific measurements are made on
individual credit positions.
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
299
Depreciation and amortization
Changes in the economic conditions of the markets, technology and competitive forces could
significantly affect the estimated useful lives of tangible and intangible non-current assets and
may lead to a difference in the timing, and thus on the amount of depreciation and amortization
expense.
Provisions, contingent liabilities and employee
benefits
As regards the provisions for restoration costs, the estimate of future costs to dismantle tangible
assets and restore the site is a complex process that requires the valuation of the liabilities
arising from such dismantling and restoration obligations, which seldom are entirely defined by
laws, administrative regulations or contract clauses, and which normally are to be complied with
after an interval of several years.
The provisions related to legal, arbitration and fiscal disputes, as well as regulatory proceedings,
are the result of a complex estimation process based upon the probability of an unfavorable
outcome. Provisions for employee benefits, especially the provision for employee severance
indemnities, are calculated using actuarial assumptions; changes in such assumptions could
have a material impact on such liabilities. Provisions made for contractual risks are also related
to any contracts that may have become onerous and are based on an articulated estimation
process that envisages the valuation of the comprehensive negative margins of the entire
contract; they therefore include the non-discretionary costs necessary to fulfill the commitments
made that exceed the economic benefits expected from such contracts.
Revenues
The recognition of revenues is influenced by estimates of the amount of discounts, rebates and
returns to be reported as a direct adjustment to revenues, as well as the methods for defining
individual product or service stand-alone selling prices and for determining the duration of the
contract when there are renewal options.
Contract costs (IFRS 15)
The recognition of the costs of obtaining and fulfilling contracts is influenced by the estimated
expected duration of the relationship with the customer, calculated on the basis of the historical
turnover indexes and future estimates. However, this estimate is subject to fluctuations and
could only represent customers' future behavior in a limited way, especially if there are new
commercial offers or changes in the competitive environment.
Income tax expense (current and deferred)
Income tax expense (current and deferred) are calculated in each country in which the Group
operates according to a prudent interpretation of the applicable tax laws. This process
sometimes involves complex estimates to determine taxable income and deductible and taxable
temporary differences between the carrying amounts and the taxable amounts. In particular,
deferred tax assets are recognized to the extent that future taxable income will be available
against which they can be recovered. The measurement of the recoverability of deferred tax
assets, recognized based on both unused tax loss carry-forwards to future years and deductible
temporary differences, takes into account the estimate of future taxable income and is based on
conservative tax planning.
Derivative instruments and equity instruments
The fair value of derivative instruments and equity instruments is determined both using
valuation models which also take into account subjective measurements such as, for example,
cash flow estimates, expected volatility of prices, etc., and on the basis of prices existing in
regulated markets or quotations provided by financial counterparties. For further details refer to
the Note “Supplementary disclosures on financial instruments”.
As per IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) paragraph 10, in the absence of
a standard or interpretation that specifically applies to a transaction, the Management shall use its judgment
in developing and applying an accounting policy that results in consolidated financial statements that
represent faithfully the financial position, financial performance and cash flows of the Group, reflect the
economic substance of transactions, and are neutral, prudential and complete in all material aspects.
New standards and interpretations endorsed by the EU and in
force from January 1, 2024
As required by IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors), the following is a brief
description of the IFRS in force commencing as of January 1, 2024.
Amendments to IFRS 16: Lease Liability in a Sale and Leaseback
On November 20, 2023, Regulation (EU) No. 2023/2579 was issued, implementing limited amendments to IFRS
16 to clarify that, in a sale and leaseback translation, the seller/lessee must measure only the amount in profit
or loss resulting from the rights transferred to the purchase/lessor. The initial measurement of the lease
liabilities arising from a sale and leaseback transaction depends on how the seller-lessee measures the right-
of-use asset and the gain or loss recognized at the transaction date.
Prior to these amendments, IFRS 16 did not contain specific measurements/requirements in relation to lease
liabilities that may contain variable payments arising from a sale and leaseback transaction. The amendments
require that, when subsequently measuring lease liabilities in a sale and leaseback transaction, the lessee-
seller should determine “lease payments” or “modified lease payments” so as not to recognize any gain or loss
that relates to the right-of-use retained by the seller-lessee.
The adoption of these amendments had no effect on the consolidated financial statements at December 31,
2024.
Amendments to IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current
On December 19, 2023, Regulation (EU) No. 2023/2822 was issued, implementing certain limited amendments
to IAS 1 clarifying that liabilities are classified as current or non-current depending on the rights existing at the
end of the year. The amendment clarifies that:
■
the classification of liabilities as current or non-current must be based on rights existing at the end of the
year. In all relevant paragraphs, the wording is aligned to refer to the "right" to defer payment for at least
12 months, with it made explicit that only rights that are in existence "at the end of the reporting period"
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
300
should affect the classification of a liability. In other words, liabilities are classified as non-current if the
entity has a substantial right to defer payment for at least 12 months at the end of the year;
■
the classification is unaffected by expectations as to whether or not an entity will exercise its right to defer
payment of a liability; in other words, management's expectations do not affect the classification; and
■
settlement refers to the transfer of cash, equity instruments, other assets or services to the counterparty.
The adoption of these amendments had no effect on the consolidated financial statements at December 31,
2024.
Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities
with Covenants
The same Regulation (EU) 2023/2822, issued on December 19, 2023, implemented other limited amendments
to IAS 1, clarifying that only covenants with which an entity must comply on or before the reporting date will
affect a liability’s classification as current or non-current.
In other words, these amendments provided that, at the reporting date, entities must not consider covenants
that are to be complied with in future for the purposes of classifying debt as current or non-current. Instead,
the entity must disclose these covenants in the notes to the financial statements.
With these changes, the IASB aims to help investors understand the risk of liabilities being repaid early. As
such, it has improved disclosures on long-term liabilities.
The adoption of these amendments had no effect on the consolidated financial statements at December 31,
2024.
Amendments to IAS 7 – Statement of Cash Flows and IFRS 7 – Financial Instruments:
Disclosures
On May 15, 2024, Regulation (EU) no. 2024/1317 was issued, incorporating certain amendments to IAS 7 –
Statement of Cash Flows and IFRS 7 – Financial Instruments: Disclosures. The amendments aim to help users
of financial statements determine the effects of supplier finance arrangements on an entity’s liabilities, cash
flows and liquidity risk exposure.
The amendments require entities to disclose information on the impact of supplier finance arrangements on
liabilities and cash flows, including:
■
the terms and conditions;
■
at the start and end of the reporting period:
■
the carrying amounts of the financial liabilities that are part of the supplier financing agreement and the
items in which these liabilities are presented;
■
the carrying amounts of the financial liabilities and the items for which payment has already been settled
by the finance provider;
■
the range of payment terms, expressed in time, of payables due to lenders and of trade payables that do
not form part of the arrangement;
■
the type and effect of non-monetary changes in the carrying amounts of the financial liabilities that are
part of the supplier finance arrangement, which prevent the carrying amounts of financial liabilities from
being comparable.
The amendments require entities to aggregate information related to supplier finance agreements. However,
entities must disaggregate information on any unusual or unique terms and conditions of individual
arrangements when these are dissimilar.
Explanatory information on payment due dates must also be disaggregated when there is a wide range of
payment due dates.
Supplier finance arrangements are included among the quantitative liquidity risk disclosures in IFRS 7 as an
example of other potentially material factors.
The amendments contain measures to facilitate the transition. For example, entities are not required to
disclose comparative information for preceding periods in the annual reporting period it first applies the
amendments.
The adoption of these amendments had no effect on the consolidated financial statements at December 31,
2024.
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
301
New Standards and Interpretations issued by the IASB but not
yet applicable
At the date of preparation of these consolidated financial statements, the IASB had issued the following new
Standards and Interpretations which have not yet come into force:
Mandatory
application
starting from
New Standards and Interpretations not yet endorsed by the EU
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments
1/1/2026
Annual Amendments to IFRS - Volume 11
1/1/2026
Nature-dependent electricity contracts: Amendments to IFRS 9 and IFRS 7
1/1/2026
IFRS 18 – Presentation and Disclosure in Financial Statements
1/1/2027
IFRS 19 – Subsidiaries without Public Accountability: Disclosures
1/1/2027
New Standards and Interpretations endorsed by the EU
Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates
1/1/2025
Any impacts on the Group’s consolidated financial statements resulting from the application of these new
Standards/Interpretations are currently being assessed; However, it is considered that they are not significant
with respect to financial and economic results.
TIM Group Consolidated
Financial Statements
Note 2
Accounting policies
302
NOTE 3
SCOPE OF CONSOLIDATION
Investments in consolidated subsidiaries
Composition of the Group
TIM holds a majority of the voting rights in all the subsidiaries included in the scope of consolidation.
A complete list of consolidated subsidiaries is provided in Note 46 “List of companies of the TIM Group”.
Scope of consolidation
In terms of changes in the scope of consolidation at December 31, 2024, compared to December 31, 2023, it
should particularly be noted that on July 1, 2024, TIM S.p.A. transferred a Business Unit – consisting of the
activities relating to the primary network, the wholesale business and the entire shareholding in the subsidiary
Telenergia S.r.l. – to FiberCop S.p.A., a company that already managed the activities relating to the secondary
fiber and copper network; concurrent with the transfer, TIM S.p.A. sold its entire stake in the share capital of
FiberCop S.p.A. to Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis Roberts & Co. L.P. (“KKR”)).
Further changes in the scope of consolidation are also shown below.
Entry/exit/merger of subsidiaries into/out of the scope of consolidation:
Company
Business Unit
Month
Entry:
TI SPARKLE MEXICANA S.A. de C.V.
Newly incorporated
Domestic
January 2024
QTI S.r.l.
Increase in share held
Domestic
June 2024
SPARKLE COMMUNICATIONS INDIA PRIVATE Ltd
Newly incorporated
Domestic
July 2024
Exit:
NOOVLE AI S.r.l.
Liquidated
Domestic
February 2024
GLOBAL SPACE 3 S.r.l.
Liquidated
Domestic
February 2024
STAER SISTEMI S.r.l.
Merged into OLIVETTI S.p.A.
Domestic
April 2024
TI SPARKLE CZECH S.R.O.
Liquidated
Domestic
June 2024
FIBERCOP S.p.A.
Sold
Domestic
July 2024
TELENERGIA S.r.l.
Sold
Domestic
July 2024
The breakdown by number of subsidiaries, associates and joint ventures of the TIM Group is as follows:
12/31/2024
Companies:
Italy
Outside Italy
Totale
subsidiaries consolidated line-by-line
15
44
59
joint ventures accounted for using the equity method
2
—
2
associates accounted for using the equity method
7
1
8
Total companies
24
45
69
12/31/2023
Companies:
Italy
Outside Italy
Total
subsidiaries consolidated line-by-line
19
43
62
joint ventures accounted for using the equity method
2
—
2
associates accounted for using the equity method
11
1
12
Total companies
32
44
76
Further details are provided in the Note 46 "List of companies of the TIM Group".
TIM Group Consolidated
Financial Statements
Note 3
Scope of consolidation
303
Subsidiaries with a significant non-controlling interest
At December 31, 2024, the TIM Group held investments in subsidiaries, with significant non-controlling interest,
in relation to the TIM Brasil group.
The figures provided below, stated before the netting and elimination of intragroup accounts, comply with IFRS
and reflect adjustments made at the acquisition date to align the assets and liabilities acquired to their fair
value.
TIM Brasil group – Brazil Business Unit
Non-controlling interest accounted at December 31, 2024 for 33.4% of the capital of TIM S.A., coinciding with
the corresponding voting rights.
Financial position data TIM Brasil group
(million euros)
12/31/2024
31/12/2023
Non-current assets
7,111
8,596
Current assets
2,081
2,238
Total Assets
9,192
10,834
Non-current liabilities
3,111
3,832
Current liabilities
2,194
2,565
Total Liabilities
5,305
6,397
Equity
3,887
4,437
of which Non-Controlling Interests
1,389
1,646
Income statement data TIM Brasil group
(million euros)
2024
2023
Revenues
4,366
4,412
Profit (loss) for the year
412
448
of which Non-Controlling Interests
181
175
Financial data of the TIM Brasil group
Aggregate cash flows generated in 2024 amounted to -116 million euros, with a negative exchange rate effect
of 104 million euros.
In 2023, this was positive for 167 million euros, with a positive exchange rate difference of 20 million euros.
∂
Finally, with regard to the subsidiaries with significant minority interests, in line with the information provided
in the Report on Operations - “Main risks and uncertainties” section, the main risk factors that could lead, even
significantly, to restrictions on the operations of the TIM Brasil group are listed below:
■
strategic risks (risks related to agreements with suppliers and partners, staff engagement, climate change,
and technological innovation);
■
Operational risks (risks related to business continuity, fraud, supply chain, and network development);
■
financial risks (risks related to interest rate fluctuations, liquidity and credit risks, risks related to
macroeconomic factors);
■
risks related to the legislative and regulatory environment (regulatory risks, privacy, occupational health
and safety, Golden Power regulations);
■
market risks (risks related to competitive dynamics, geopolitical stability, customer needs and satisfaction);
■
technology and cyber security risks (risks related to technology security, cyber attacks, and the integrated
use of artificial intelligence in business processes).
TIM Group Consolidated
Financial Statements
Note 3
Scope of consolidation
304
NOTE 4
GOODWILL
Goodwill shows the following breakdown and changes for 2023 and 2024:
(million euros)
12/31/2022
Increase
Decrease
Impairments
Exchange
differences
12/31/2023
Domestic
18,134
19
18,153
Brazil
977
40
1,017
Other Operations
—
—
Total
19,111
19
—
—
40
19,170
(million euros)
12/31/2023
Discontinued
Operations
Increase
Decrease
Impairments
Exchange
differences
12/31/2024
Domestic
18,153
(7,920)
4
(52)
10,185
Brazil
1,017
(172)
845
Other Operations
—
—
Total
19,170
(7,920)
4
(52)
—
(172)
11,030
In accordance with IAS 36, goodwill is not subject to amortization, but is tested for impairment at least on an
annual basis, when preparing the company’s consolidated financial statements.
During 2024, Goodwill decreased by 8,140 million euros, from 19,170 million euros at the end of 2023 to 11,030
million euros as of December 31, 2024. Specifically:
■
Goodwill of the Cash Generating Unit Domestic shows an overall decrease of 7,968 million euros due to:
•
the allocation of goodwill of 7,920 million euros attributed to NetCo, sold on July 1, 2024;
•
the recognition of goodwill in the amount of 4 million euros referring to the acquisition of control of QTI
S.r.l;
•
the allocation of goodwill in the amount of 52 million euros to Telecom Italia Sparkle following the
acceptance of the binding offer for the sale of the entire shareholding and, as explained below, fully
written down;
■
the goodwill of the Brazil Cash Generating Unit recorded negative exchange differences of 172 million
euros (the point exchange rate used for the conversion of the Brazilian real into euro (expressed in terms of
units of local currency per €1) increased from 5.34964 at December 31, 2023 to 6.43318 at December 31,
2024).
The gross carrying amounts of Goodwill and the related accumulated impairment losses from January 1, 2004
(date of allocation to the Cash-Generating Units – CGUs) to December 31, 2024 and 2023 can be summarized
as follows:
12/31/2024
12/31/2023
(million euros)
Gross
carrying
amount
Accumulated
impairment
losses
Net
carrying
amount
Gross
carrying
amount
Accumulated
impairment
losses
Net
carrying
amount
Domestic
30,809
(20,624)
10,185
38,718
(20,565)
18,153
Brazil
983
(138)
845
1,189
(172)
1,017
Other Operations
—
—
—
—
—
—
Total
31,792
20,762
11,030
39,907
(20,737)
19,170
The figures for the Brazil CGU are stated in euros, converted at the spot exchange rate at the closing date of
the financial statements; the net carrying amount of goodwill for the CGU corresponds to 5,439 million reais at
December 31, 2024 (5,439 million reais at December 31, 2023).
The cash generating units (or groups of units) to which goodwill is allocated are as follows:
Segment
Cash-Generating Units (or groups of units)
Domestic
Domestic
Brazil
Brazil
For the Brazil CGU, the value configuration used is the fair value on the basis of market capitalization at the
end of the period.
The values are expressed in local currency, and hence in euros for the Domestic CGU and in Reais for the Brazil
CGU. For the latter CGU, the recoverable amount is determined based on the price (and consequent market
capitalization) on that date, stated in functional currency and subsequently converted at the spot exchange
rate as of the balance sheet date.
TIM Group Consolidated
Financial Statements
Note 4
Goodwill
305
Below, therefore, is an explanation of how impairment testing of the Domestic CGU is carried out for the
consolidated financial statements.
Following the sale of NetCo, the Domestic CGU includes the Enterprise, Consumer and Sparkle perimeter. On
February 12, 2025, TIM's Board of Directors accepted a binding offer (representing the fair value of the
perimeter being sold) for the sale of the entire stake (100%) held in Telecom Italia Sparkle, the transaction is
expected to be concluded in the first part of 2026.
Therefore, the value configuration used to determine the recoverable amount as of December 31, 2024 of the
Domestic CGU is the Fair Value estimated based on a valuation obtained by sum of parts between the
Enterprise and Consumer (Domestic formerly Sparkle) subCGUs and the Sparkle subCGU.
The present value (as of December 31, 2024) of the price implied in the binding offer (price proposal referring to
the first quarter of 2026) by an independent party (MEF / Retelit) was assumed as the recoverable value
estimate of Sparkle.
Instead, the fair value based on the income approach was taken as the estimate of Domestic formerly
Sparkle's recoverable value, as it was deemed to better express the value of the Group's assets (so-called
market participant perspective), also reflecting the cost interventions in view of a possible future new and
different business structure.
For the Domestic subCGU formerly Sparkle, the estimate of fair value on the basis of the income approach was
made in compliance with IAS 36, with valuation principles and best practices, with reference to the flows of the
2025-2027 Industrial Plan, which is based on the final results of 2024: (i) it reflects realistic expectations
regarding future evolutions; (ii) it brings into play careful cost cutting actions as preparation for the future
business structure; (iii) it maintains the perspective of use of assets of the domestic market continuing on with
the same conditions as at December 31, 2024. The expected cash flows reported in the 2025-2027 Industrial
Plan approved by the Board of Directors have been critically analyzed and, with the support of expert
appraisers, the average representativeness has been assessed. Expected average cash flows for the 2025-2027
Industrial Plan were extrapolated for an additional two years (2028-2029), thus bringing the explicit forecast
period for future cash flows to a total of five years (2025-2029). The extrapolation of data for 2028-2029 was
necessary, in line with that carried out by the main European incumbents, in order to intercept market,
competition and industrial trends that will become manifest beyond the forecast horizon of the Industrial Plan.
It is specified that where inputs are present that cannot be observed, the fair value thus determined is assigned
as level 3 of the fair value hierarchy, as envisaged by IFRS 13 - Fair value measurement.
The estimation of the fair value according to the income approach requires the determination of the current
value of income beyond the explicit forecast period (“terminal value”). For this purpose, the 2029 flow has been
appropriately adjusted to take into account a level of long-term investment normalized by the effects related
to the development of projects in innovative technologies existing in the plan years. In addition, specifically in
reference to the use of the 5G license, account was taken of the expected incremental net flows over the
license term beyond the plan’s five-year term. This approach is consistent with the need to consider, on the
one hand, the negative cash flows arising from the investments made supporting the exploitation of the 5G
license, and on the other hand, the positive cash flows arising from the incremental business component that
the license allows to be developed over a longer time frame than the five years of explicit forecast.
The cost of capital used to discount the future cash flows in the estimates of fair value for the Domestic
subCGU formerly Sparkle:
■
was estimated using the Capital Asset Pricing Model (CAPM), which is one of the generally accepted
application criteria referred to in IAS 36;
■
reflects current market estimates of the time value of money and the specific risks associated with the
asset groups; includes appropriate yield premiums for country risk;
■
was calculated using comparative market parameters to estimate the “Beta coefficient” and the weighting
coefficient of the equity and debt capital components.
These are reported below for the Domestic subCGU formerly Sparkle:
■
the weighted average cost of capital (WACC rate) used to discount the future cash flows and the
equivalent rate before tax;
■
details are also provided of the growth rate used to estimate the residual value after the explicit forecast
period (the G-Rate), expressed in nominal terms and related to the cash flows in their functional currency;
■
details are provided of the implicit capitalization rates resulting from the difference between the cost of
capital, after tax, and the G-Rate.
Parameters relevant to the Fair Value estimates of the Domestic sub-CGU formerly Sparkle
WACC
7.00%
WACC before tax
9.08%
Growth rate beyond the explicit period (g)
1.00%
Capitalization rate after tax (WACC-g)
6.00%
Capitalization rate before tax (WACC-g)
8.08%
CapEx/Revenues, perpetual
10.65%
The 7% aligned weighted average cost of capital estimate is within the range of weighted average cost of
capital estimates by equity analysts.
The growth rate in the terminal value “g” of the Domestic subCGU formerly Sparkle was estimated taking into
account the expected evolution of demand for the various business areas (Enterprise and Consumer), overseen
TIM Group Consolidated
Financial Statements
Note 4
Goodwill
306
in terms of investments and competences also by the subsidiary Noovle. The growth rate thus estimated falls
within the range of growth rates applied by analysts who monitor TIM shares.
The phase of capital expenditure, competitive positioning and the technological infrastructure operated was
taken into account in estimating the level of investment needed to sustain the perpetual development of cash
flows after the explicit forecast period.
The recoverable value of the Cash Generating Unit Domestic, determined on the basis of estimated Fair Value
by sum of parts showed a higher fair value than the carrying amount (so-called headroom) of 1,277 million
euros.
The difference between the recoverable amounts and the net carrying amounts of the CGUs considered
totaled:
(million euros)
Domestic
Brazil
Difference between recoverable and net carrying amounts
1.277
1.408
Therefore, in light of all the foregoing, the Goodwill values recognized in the financial statements relating to
the Domestic CGU (positive difference of +1,277 million euros) and the Brazil CGU (positive difference of +1,408
million euros) are confirmed.
The recoverability of the related net assets after allocation of the Domestic portion of goodwill (52 million
euros) to the Sparkle group was then verified; as a result of this assessment, it became necessary to write
down the entire allocated goodwill. For more details, please refer to the Note 34"Impairment reversals (losses)
on non-current assets."
In accordance with IAS 36, a sensitivity analysis was carried out to identify the change in key variables
(weighted average cost of capital, marginality as captured by the ratio of EBITDA to revenues, income growth
rate in terminal value) that makes the recoverable amount equal to the carrying amount.
This analysis shows that in order to align the recoverable amount with the carrying amount, it would
alternatively require:
■
An upward change in costs such that the EBITDA margin (= EBITDA/revenues) is reduced by 1.04%, or;
■
or a 0.43% rise in the WACC (at the value of 7.43%), or;
■
a growth rate of income in terminal value of 0.442%.
With regard to the Brazilian CGU, the change in the price per share, compared to the reference quotation
considered for the purposes of the financial statements, which would make the recoverable value equal to the
carrying amount is equal to -25.84%.
The second-level impairment test is discharged by sum of the values of the Domestic and Brazil unit (both
expressed at fair value).
The second level impairment test revealed a recoverable amount that exceeded the book value of the Group’s
business as a whole, thereby not showing any need for impairment.
TIM Group Consolidated
Financial Statements
Note 4
Goodwill
307
NOTE 5
INTANGIBLE ASSETS WITH A FINITE USEFUL LIFE
This item decreased by 1,111 million euros compared to December 31, 2023. The breakdown and movements
are as follows:
(million euros)
12/31/2022
Investments
Depreciation
and
amortization
Impairment
(losses) /
reversals
Disposals
Exchange
differences
Capitalized
borrowing
costs
Other
changes
12/31/2023
Industrial patents
and intellectual
property rights
1,985
659
(1,045)
(1)
18
294
1,910
Concessions, licenses,
trademarks and
similar rights
4,643
8
(485)
57
539
4,762
Other intangible
assets with a finite
useful life
45
3
(10)
2
11
51
Work in progress and
advance payments
983
242
(1)
16
18
(859)
399
Total
7,656
912
(1,540)
—
(2)
93
18
(15)
7,122
(million euros)
12/31/2023
Discontinued
Operations
Investments
Depreciation
and
amortization
Impairment
(losses) /
reversals
Disposals
Exchange
differences
Other
changes
12/31/2024
Industrial patents
and intellectual
property rights
1,910
(161)
545
(933)
(74)
278
1,565
Concessions, licenses,
trademarks and
similar rights
4,762
(8)
11
(477)
(282)
4,006
Other intangible
assets with a finite
useful life
51
2
(9)
(6)
3
41
Work in progress and
advance payments
399
(70)
297
(1)
(9)
(217)
399
Total
7,122
(239)
855
(1,419)
—
(1)
(371)
64
6,011
Investments in 2024 amounted to 855 million euros (912 million euros in 2023) and included 174 million euros
in internally generated assets (230 million euros in 2023).
Industrial patents and intellectual property rights at December 31, 2024, essentially consist of the plant
operation and application software purchased outright and user license, amortized over a period between 2
and 6 years and relating mainly to TIM S.p.A. (1,005 million euros), the Brazil Business Unit (363 million euros)
and Noovle S.p.A. (128 million euros).
Concessions, licenses, trademarks and similar rights at December 31, 2024 mainly refer to the residual cost of
telephone licenses and similar rights (2,676 million euros for TIM S.p.A. and 1,292 million euros for the Brazil
Business Unit).
TIM Group Consolidated
Financial Statements
Note 5
Intangible assets with a finite useful life
308
The residual amount of telephone licenses and similar rights in operation at December 31, 2024 (3,968 million
euros) and their useful lives are detailed below:
Type
Residual amount
at
December 31, 2024
Useful life
Maturity
Amortization
expense for
2024
(million euros)
(years)
(million euros)
TIM S.p.A.:
UMTS 2100 MHz (extension)
150
8
12/31/2029
30
WiMax (extension)
3
7
12/31/2029
1
34-36-MHz OpNet (former Linkem) band
44
7
12/31/2029
9
LTE 1800 MHz
43
18
12/31/2029
9
LTE 800 MHz
300
17
12/31/2029
60
LTE 2600 MHz
33
17
12/31/2029
7
L Band (1452-1492 MHz)
82
14
12/31/2029
16
900 and 1800 MHz band
274
11
12/31/2029
55
3600-3800 MHz band (5G)
1,154
19
12/31/2037
89
26.5-27.5 GHz band (5G)
23
19
12/31/2037
2
694-790 MHz band (5G)
570
15 years and 6
months
12/31/2037
44
TIM Brasil group:
800 MHz, 900 MHz and 1800 MHz band
273
from 2 to 20
from 2025 to 2039
27
1900 MHz and 2100 MHz band
77
from 2 to 20
from 2025 to 2039
8
700 MHz, 2500 MHz and 2.5 GHz band (4G)
388
from 2 to 20
from 2025 to 2039
76
2.3 GHz, 3.5 GHz, and 26 GHz band (5G)
554
from 10 to 20
from 2030 to 2041
39
Work in progress and advance payments mainly relate to TIM S.p.A. (273 million euros) and the Brazil
Business Unit (52 million euros) and refer mainly to software developments.
The gross carrying amount, accumulated impairment losses and accumulated amortization at December 31,
2023 and December 31, 2024 can be summarized as follows:
12/31/2023
(million euros)
Gross
carrying
amount
Accumulated
impairment
losses
Accumulated
amortization
Net
carrying
amount
Industrial patents and intellectual property rights
13,932
—
(12,022)
1,910
Concessions, licenses, trademarks and similar rights
8,454
—
(3,692)
4,762
Other intangible assets
596
—
(545)
51
Work in progress and advance payments
399
—
—
399
Total
23,381
—
(16,259)
7,122
12/31/2024
(million euros)
Gross
carrying
amount
Accumulated
impairment
losses
Accumulated
amortization
Net
carrying
amount
Industrial patents and intellectual property rights
12,992
—
(11,427)
1,565
Concessions, licenses, trademarks and similar rights
7,839
—
(3,833)
4,006
Other intangible assets
232
—
(191)
41
Work in progress and advance payments
399
—
399
Total
21,462
—
(15,451)
6,011
With reference to gross values in 2024, the Parent Company TIM S.p.A. made disposals amounting to 482
million euros related to intellectual property rights, mainly for obsolete IT and network systems and software
developments, which have been almost totally amortized.
TIM Group Consolidated
Financial Statements
Note 5
Intangible assets with a finite useful life
309
NOTE 6
TANGIBLE ASSETS
Property, plant and equipment owned
This item decreased by 10,132 million euros compared to December 31, 2023. The breakdown and movements
are as follows:
(million euros)
12/31/2022
Investments
Depreciation
and
amortization
Impairment
(losses) /
reversals
Disposals
Exchange
differences
Other
changes
12/31/2023
Land
232
(4)
1
229
Buildings (civil and
industrial)
651
19
(37)
(4)
24
653
Plant and
equipment
12,002
2,081
(2,162)
(25)
76
438
12,410
Manufacturing and
distribution
equipment
20
8
(7)
(1)
20
Other
362
100
(155)
(1)
5
18
329
Construction in
progress and
advance payments
833
733
(1)
3
(517)
1,051
Total
14,100
2,941
(2,361)
—
(35)
84
(37)
14,692
(million euros)
12/31/2023
Discontinued
Operations
Investments
Depreciation
and
amortization
Impairment
(losses) /
reversals
Disposals
Exchange
differences
Other
changes
12/31/2024
Land
229
(181)
(1)
(1)
46
Buildings (civil and
industrial)
653
(406)
4
(11)
(2)
(1)
7
244
Plant and
equipment
12,410
(8,442)
732
(1,042)
(8)
(356)
227
3,521
Manufacturing and
distribution
equipment
20
(17)
1
(1)
1
4
Other
329
(21)
107
(140)
(1)
(20)
5
259
Construction in
progress and
advance payments
1,051
(630)
350
(14)
(2)
(14)
(255)
486
Total
14,692
(9,697)
1,194
(1,194)
(14)
(13)
(392)
(16)
4,560
Land comprises both built-up land and available land and is not subject to depreciation. The balance as of
December 31, 2024 refers mainly to the Domestic Business Unit (40 million euros).
Buildings (civil and industrial) mainly includes buildings for industrial use hosting data centers. Specifically,
the balance as of December 31, 2024 refers mainly to Noovle S.p.A. (214 million euros).
Plant and equipment mainly includes transmission and power systems and equipment, data network and
switching, and radio base stations (RBS) infrastructure and commercial products. The amount at December 31,
2024 was mainly attributable to the Brazil Business Unit (1,797 million euros) and the Domestic Business Unit
(1,724 million euros).
Manufacturing and distribution equipment mainly included the equipment needed for the infrastructural
completion of Telsy S.p.A. laboratories.
Other mainly consists of hardware for the functioning of the network and for work stations, furniture and
fixtures and, to a minimal extent, transport vehicles and office machines.
Construction in progress and advance payments refer to the internal and external costs incurred for the
acquisition and internal production of tangible assets, which are not yet in use.
Investments in 2024 include 123 million euros of internally generated assets (308 million euros in 2023).
Depreciation, impairment losses and reversals have been recorded in the income statement as components of
EBIT.
Depreciation for the years 2024 and 2023 was calculated on a straight-line basis over the estimated useful lives
of the assets according to the following minimum and maximum rates:
TIM Group Consolidated
Financial Statements
Note 6
Tangible assets
310
Buildings (civil and industrial)
2% - 20%
Plant and equipment
3% - 50%
Manufacturing and distribution equipment
15% - 25%
Other
5% - 50%
Other changes in 2024 mainly refer to the effects related to the NetCo transaction.
The gross carrying amount, accumulated impairment losses and accumulated amortization at December 31,
2023 and December 31, 2024 can be summarized as follows:
(million euros)
12/31/2023
Gross
carrying
amount
Accumulated
impairment
losses
Accumulated
amortization
Net
carrying
amount
Land
232
(3)
229
Buildings (civil and industrial)
2,053
—
(1,400)
653
Plant and equipment
76,271
(12)
(63,849)
12,410
Manufacturing and distribution equipment
346
(1)
(325)
20
Other
3,873
(2)
(3,542)
329
Construction in progress and advance payments
1,052
(1)
1,051
Total
83,827
(19)
(69,116) 14,692
12/31/2024
(million euros)
Gross
carrying
amount
Accumulated
impairment
losses
Accumulated
amortization
Net
carrying
amount
Land
48
(2)
46
Buildings (civil and industrial)
440
(196)
244
Plant and equipment
21,679
(4)
(18,154)
3,521
Manufacturing and distribution equipment
41
(1)
(36)
4
Other
3,371
(2)
(3,110)
259
Construction in progress and advance payments
486
486
Total
26,065
(9)
(21,496)
4,560
With regard to the gross amounts, in 2024 the parent company TIM S.p.A. made disposals for a total value of
226 million euros, mainly in relation to fully depreciated assets, including: public telephone equipment and
booths (142 million euros), Consumer and Business network equipment (30 million euros), network
infrastructure (20 million euros), routers, decoders and other equipment (22 million euros) and cell phones (3
million euros).
TIM Group Consolidated
Financial Statements
Note 6
Tangible assets
311
NOTE 7
RIGHT OF USE ASSETS
This item decreased by 2,048 million euros compared to December 31, 2023. The breakdown and movements
are as follows:
(million euros)
12/31/2022
Investments
Increases in
lease
contracts
Depreciation
and
amortization
Disposals
Exchange
differences
Other
changes
12/31/2023
Property
2,967
27
711
(440)
(80)
22
(40)
3,167
Plant and equipment
2,370
68
348
(483)
(79)
55
(63)
2,216
Other tangible assets
102
21
(35)
(3)
(12)
73
Construction in
progress and advance
t
35
18
(24)
29
Intangible assets
14
16
7
(4)
(3)
30
Total
5,488
129
1,087
(962)
(162)
77
(142)
5,515
(million euros)
12/31/2023
Discontinued
Operations
Investments
Increases in
lease
contracts
Depreciation
and
amortization
Disposals
Exchange
differences
Other
changes
12/31/2024
Property
3,167
(2,243)
4
262
(142)
(67)
(99)
(18)
864
Plant and equipment
2,216
(239)
14
436
(415)
(40)
(223)
716
2,465
Other tangible assets
73
(34)
21
(14)
(2)
1
45
Construction in
progress and advance
t
29
(21)
49
(5)
52
Intangible assets
30
13
1
(5)
2
41
Total
5,515
(2,537)
80
720
(576)
(109)
(322)
696
3,467
Capital expenditures in 2024 mainly refer to the Domestic Business Unit and are substantially related to the
IRU acquisition of transmission capacity as well as improvements and incremental expenses incurred on leased
property and non-property assets.
Increases in leases in 2024, totaling 720 million euros, relate to the Brazil Business Unit at 507 million euros
and the Domestic Business Unit at 213 million euros. These increases include the higher value of user rights
recorded as a result of new leases payable, rent increases, and renegotiations of existing contracts. In
accordance with IFRS 16 (Leases), in view of such increases, lease liabilities are presented through the
recognition of a financial liability in the statement of financial position at the present value of future lease
payments, against the recognition of a rights-of-use asset of the leased asset.
Amortization and impairment losses have been recorded in the income statement as components of EBIT.
The disposals are representative of the carrying amount of the assets from lease agreements that terminated
early.
In addition to the effects related to the NetCo transaction, other changes mainly includechanges related to the
lower value of user rights recorded as a result of contractual changes during the year , and also include
transfers during the year.
Property includes buildings and land under finance leases and the related building adaptations, attributable to
the Brazil Business Unit (493 million euros) and the Domestic Business Unit (371 million euros).
Plant and equipment mainly includes rights of use on infrastructures for telecommunications services. They
refer to the Domestic Business Unit for 1,338 million euros and the Brazil Business Unit for 1,127 million euros.
This includes, inter alia:
■
the recognition of the value of the telecommunications towers sold by the TIM Brasil group to American
Tower do Brasil and subsequently repurchased in the form of a finance lease;
■
the recognition - by the Parent Company TIM S.p.A. as part of the NetCo transaction as part of
consideration - of usage rights (fair value) on B2B connections (755 million euros) with varying durations
between 7 and 20 years.
Other tangible assets mainly comprises the leases on motor vehicles.
The item Intangible assets mainly includes Telecom Italia Sparkle's rights of use on the transmission
frequency spectrum on non-illuminated fiber optic carriers of a submarine cables, as well as the right of use of
the subsidiary Telsy for the use of a cloud computing platform created for the exclusive benefit of the company
for the exercise of security services.
Consolidated Financial
Statements of
TIM Group
Note 7
Rights of use assets
312
The gross carrying amount, accumulated impairment losses and accumulated amortization at December 31,
2023 and December 31, 2024 can be summarized as follows:
12/31/2023
(million euros)
Gross
carrying
amount
Accumulated
impairment
losses
Accumulated
amortization
Net
carrying
amount
Property
6,324
(13)
(3,144)
3,167
Plant and equipment
4,582
(276)
(2,090)
2,216
Other
240
(167)
73
Construction in progress and advance payments
29
29
Intangible assets
36
—
(6)
30
Total
11,211
(289)
(5,407)
5,515
12/31/2024
(million euros)
Gross
carrying
amount
Accumulated
impairment
losses
Accumulated
amortization
Net
carrying
amount
Property
1,452
(588)
864
Plant and equipment
4,821
(281)
(2,075)
2,465
Other
105
(60)
45
Construction in progress and advance payments
52
52
Intangible assets
49
(8)
41
Total
6,479
(281)
(2,731)
3,467
Impairment losses on “Plant and equipment”, mainly relating to prior years, refers to the Indefeasible Rights of
Use (IRU) for the transmission capacity and cables for international connections acquired by the Telecom Italia
Sparkle group.
With reference to gross values, in 2024 the Parent Company TIM S.p.A. made disposals with a total value of 135
million euros related mainly to leased properties and related improvements and adaptations (112 million
euros), radio base stations (7 million euros), and cars (15 million euros).
NOTE 8
INVESTMENTS
Investments in associates and joint ventures accounted for
using the equity method
Investments in associates and joint ventures accounted for using the equity method are reported below in
detail:
(million euros)
12/31/2024
12/31/2023
I-Systems S.A.
213
271
Daphne 3 S.p.A.
—
200
NordCom S.p.A.
—
7
Italtel S.p.A.
—
7
W.A.Y. S.r.l.
3
4
QTI S.r.l
—
2
Other
—
2
Total Associates
(a)
216
493
TIMFin S.p.A.
31
30
Polo Strategico Nazionale S.p.A.
18
14
Total Joint Ventures
(b)
49
44
Total investments accounted for using the equity method
(a+b)
265
537
Consolidated Financial
Statements of
TIM Group
Note 7
Rights of use assets
313
The changes in this item are broken down as follows:
(million euros)
12/31/2022
Investments
Disposals and
reimbursements
of capital
Valuation using
equity method
Other
changes
12/31/2023
I-Systems S.A.
277
(17)
11
271
Daphne 3 S.p.A.
212
(12)
200
Italtel S.p.A.
9
(2)
7
NordCom S.p.A.
6
1
7
W.A.Y. S.r.l.
4
4
QTI S.r.l
3
(1)
2
Other
2
—
2
Total Associates
513
—
—
(31)
11
493
TIMFin S.p.A.
21
10
(1)
30
Polo Strategico Nazionale S.p.A.
5
19
(10)
14
Total Joint Ventures
26
29
—
(10)
(1)
44
Total investments accounted for
using the equity method
539
29
—
(41)
10
537
(million euros)
12/31/2023
Investments
Disposals and
reimbursements
of capital
Valuation using
equity method
Other
changes
12/31/2024
I-Systems S.A.
271
(14)
(44)
213
Daphne 3 S.p.A.
200
(189)
(11)
—
Italtel S.p.A.
7
(5)
(2)
—
NordCom S.p.A.
7
(7)
—
W.A.Y. S.r.l.
4
(1)
3
QTI S.r.l
2
(2)
—
Other
2
(2)
—
Total Associates
493
—
(201)
(28)
(48)
216
TIMFin S.p.A.
30
1
31
Polo Strategico Nazionale S.p.A.
14
7
(3)
18
Total Joint Ventures
44
7
—
(2)
—
49
Total investments accounted for
using the equity method
537
7
(201)
(30)
(48)
265
In terms of disposals, it is particularly worth noting that, on November 29, 2024, TIM and Ardian (through
Impulse I, a consortium of institutional investors headed by Ardian) agreed the sale of TIM’s remaining 10%
stake in the holding company Daphne 3 S.p.A., which in turn holds a 30.8% stake in Infrastrutture Wireless
Italiane ("INWIT").
"Other changes" mainly include exchange rate differences related to the investment in the Brazilian associate
I-Systems S.A..
The list of investments accounted for using the equity method is presented in the Note 46 "List of companies
of the TIM Group".
Other investments in associates accounted for using the equity method of the TIM Group are not material
either individually or in aggregate form.
Investments in structured entities
The TIM Group does not hold investments in structured entities.
TIM Group Consolidated
financial statements
Note 8
Investments
314
Other investments
Other investments refer to the following:
(million euros)
12/31/2022
Investments
Disposals and
reimbursements
of capital
Valuation
at fair
value
Other changes
12/31/2023
SECO S.p.A.
56
(20)
36
Banco C6 S.A.
30
30
Fin.Priv. S.r.l.
20
3
23
UV T-Growth
11
9
(5)
15
Northgate Telecom
Innovations Partners L.P.
16
1
(4)
13
Upload Ventures Growth LP
10
10
Other
13
13
Total
116
20
—
(26)
30
140
(million euros)
12/31/2023
Investments
Disposals and
reimbursements
of capital
Valuation
at fair
value
Other changes
12/31/2024
SECO S.p.A.
36
(17)
19
Banco C6 S.A.
30
(5)
25
Fin.Priv. S.r.l.
23
9
32
UV T-Growth
15
2
(1)
16
Northgate Telecom
Innovations Partners L.P.
13
1
(2)
12
Upload Ventures Growth LP
10
23
33
Other
13
—
13
Total
140
26
—
(11)
(5)
150
In addition:
■
during 2024, TIM S.A. (Brazil Business Unit) has invested 23 million euros in the investment fund focused on
5G solutions called Upload Ventures Growth. As at December 31, 2024, TIM S.A. (Brazil Business Unit) does
not control the management of the fund or exercise significant influence;
■
as at December 31, 2024, the TIM Group has committed to subscribe to shares:
•
of the UV T-Growth fund in the amount of 36.7 million euros;
•
in the Northgate CommsTech Innovations Partners L.P. fund for 2.6 million USD, equal to
approximately 2.5 million euros at the exchange rate as at December 31, 2024.
As permitted by IFRS 9, TIM now measures Other Investments mainly at "fair value through other
comprehensive income (FVTOCI)".
Further details on Financial Instruments are provided in the Note 20"Supplementary disclosure on financial
instruments".
TIM Group Consolidated
financial statements
Note 8
Investments
315
NOTE 9
NON-CURRENT AND CURRENT FINANCIAL
ASSETS
Non-current and current financial assets were broken down as follows:
(million euros)
12/31/2024
12/31/2023
Other non-current financial assets
Securities other than investments
—
—
Receivables from employees
11
31
Hedging derivatives relating to hedged items classified as non-current
assets/liabilities of a financial nature
554
968
Non-hedging derivatives
81
95
Other financial receivables
—
9
646
1,103
Financial receivables for lease contracts
40
112
Total non-current financial assets
(a)
686
1,215
Securities other than investments, other financial receivables and other
current financial assets
Securities other than investments
Measured at amortized cost (AC)
—
—
Measured at Fair Value Through Comprehensive Income (FVTOCI)
1,116
1,516
Measured at Fair Value Through Profit or Loss (FVTPL)
423
366
1,539
1,882
Financial receivables and other current financial assets
Receivables from employees
3
24
Hedging derivatives relating to hedged items classified as current assets/
liabilities of a financial nature
32
117
Non-hedging derivatives
75
57
Other short-term financial receivables
2
491
112
689
(b)
1,651
2,571
Financial receivables for lease contracts
(c)
44
162
Cash and cash equivalents
(d)
2,924
2,912
Total current financial assets
e=(b+c+d)
4,619
5,645
Financial assets relating to Discontinued operations/Non-current assets
held for sale
(f)
—
—
Total non-current and current financial assets
g=(a+e+f)
5,305
6,860
Further details on Financial Instruments are provided in Note 20 "Supplementary disclosures on financial
instruments".
Financial receivables for lease contracts refer to:
■
finance leases on user rights and equipment;
■
agreements for the sale of network infrastructure in IRU with deferred collection over time recognized
using the financial method envisaged by IFRS 16 given the contractual term substantially close to the
economic life of the asset;
■
lease contracts for commercial products with customers.
Hedging derivatives related to hedged items classified as non-current and current assets/liabilities of a
financial nature include the spot mark-to-market valuation components of cash flow hedge derivatives and
accrued income on these contracts.
Non-hedging derivatives mainly referred to the spot mark-to-market component of the non-hedging
derivatives of the Brazil Business Unit and to hedging of the Group’s Consolidated Equity Free Cash Flow. More
specifically, they include 81 million euros in relation to the option to subscribe shares of C6 Bank with which
TIM S.A. entertains commercial relations.
Further details are provided in the Note 19 "Derivatives".
TIM Group Consolidated
Financial Statements
Note 9
Non-current and current financial assets
316
Securities other than investments included in current financial assets relate to:
■
1,116 million euros of listed securities, of which 568 million euros of Italian and foreign treasury bonds
purchased by Telecom Italia Finance S.A. as well as 548 million euros of bonds purchased by Telecom Italia
Finance S.A. with different maturities, all with an active market and consequently readily convertible into
cash. Under IFRS 9 and consistently with the Business model, such securities are classified as financial
assets measured at fair value through other comprehensive income (FVTOCI). The purchases of the above
government bonds, which, pursuant to Consob Communication no. DEM/11070007 of August 5, 2011,
represent investments in “Sovereign debt securities”, have been made in accordance with the Guidelines
for the “Management and control of financial risk” adopted by the TIM Group;
■
423 million euros of investments in monetary funds by the Brazil Business Unit, which, under IFRS 9, are
classified as financial assets measured at fair value through profit or loss (FVTPL).
On May 8, 2023, the securities lending arrangement with Telecom Italia Finance S.A. was terminated early and
replaced by a new loan valid until October 1, 2026 for 40 million euros in BTP 12/1/2026; on May 9, 2023, TIM
S.p.A. effected the early termination of its loan with NatWest and issued the above mentioned security to the
same bank until October 2026.
The securities lending contracts between TIM S.p.A. and NatWest and between Telecom Italia Finance S.A. and
TIM S.p.A were terminated early on July 3 and July 10, 2024, respectively.
In addition, under a securities lending agreement signed with Telecom Italia Finance S.A. on October 18, 2023,
TIM S.p.A. borrowed 131 million euros nominal in BTP 7/15/2028 until October 19, 2026; On October 25, 2023,
TIM S.p.A. pledged a portion of the securities with a market value (from time to time) of 99 million euros in
favor of counterparty MPS after the latter issued a bank guarantee in favor of INPS in support of the application
of Art. 4 of Law 92 of June 28, 2012.
From an accounting standpoint, in compliance with IAS/IFRS, the assets are shown exclusively in the financial
statements of Telecom Italia Finance S.A., which retains the risks and benefits associated with the position.
Further details are provided in Note 2 “Accounting policies”.
Cash and cash equivalents amounted to 2,924 million euros (2,912 million euros at December 31, 2023) and
were broken down as follows:
(million euros)
12/31/2024
12/31/2023
Liquid assets with banks, financial institutions and post offices
2,428
2,294
Securities other than investments (due within 3 months)
496
618
Total
2,924
2,912
The different technical forms of investing available cash at December 31, 2024 had the following
characteristics:
■
maturities: investments have a maximum maturity of three months;
■
counterparty risk: deposits are made with leading high-credit-quality banks and financial institutions with a
rating of at least BBB and a non-negative outlook regard to Europe, and with leading local counterparts
with regard to investments in South America;
■
Country risk: deposits are made mainly in major European financial markets.
Securities other than investments (due within 3 months) included 496 million euros (618 million euros at
December 31, 2023) of Brazilian bank certificates of deposit (Certificado de Depósito Bancário) held by the Brazil
Business Unit with premier local banking and financial institutions.
TIM Group Consolidated
Financial Statements
Note 9
Non-current and current financial assets
317
NOTE 10
MISCELLANEOUS RECEIVABLES AND OTHER
NON-CURRENT ASSETS
These decreased by 392 million euros compared to December 31, 2023. The breakdown is as follows:
(million euros)
12/31/2024
of which
Financial
Instruments
12/31/2023
of which
Financial
Instruments
Miscellaneous receivables (non-current)
(a)
546
147
390
154
Other non-current assets
Deferred contract costs
1,079
1,650
Other deferred costs
170
147
(b)
1,249
1,797
Total
(a+b)
1,795
147
2,187
154
Further details on Financial Instruments are provided in the Note 20 "Supplementary disclosure on financial
instruments".
Miscellaneous receivables (non-current) totaled 546 million euros (390 million euros at December 31, 2023)
and included Non-current income tax receivables of 65 million euros (72 million euros at December 31, 2023).
The item includes:
■
297 million euros related to the Brazil Business Unit pertaining mainly to judicial deposits (103 million
euros), indirect taxes (108 million euros) and direct taxes (33 million euros);
■
248 million euros related to the Domestic Business Unit of which 211 million euros were recorded by the
Parent Company TIM S.p.A. in the second half of 2024 in connection with the non-current portion of the
receivable from FiberCop S.p.A. for services related to the Master Services Agreement (MSA), which arose
as part of the NetCo transaction.
Other non-current assets amounted to 1,249 million euros (1,797 million euros at December 31, 2023). They
mainly break down as follows:
■
Deferred contract costs of 1,079 million euros (1,650 million euros at December 31, 2023), mainly related
to the deferral of costs related to the activation and acquisitions of new contracts with customers.
Contractual costs (mainly technical activation costs and commissions for the sales network) were deferred
and charged to the separate income statements according to the expected duration of the contractual
relationship with customers (on average around 4 years for the mobile business and around 8 years for the
fixed-line business).
Total (non-current and current) deferred contract costs amounted to 1,534 million euros (2,186 million
euros at December 31, 2023) and break down as follows:
(million euros)
12/31/2024
12/31/2023
Deferred contract costs
Non-current deferred contract costs
1,079
1,650
Current deferred contract costs
455
536
Total
1,534
2,186
(million euros)
12/31/2024
12/31/2023
Deferred contract costs
Contract acquisition costs
1,210
1,255
Contract execution costs
324
931
Total
1,534
2,186
TIM Group Consolidated
Financial Statements
Note 10
Miscellaneous receivables and other non-current assets
318
Changes to comprehensive deferred contract costs in 2024 are as follows:
(million euros)
12/31/2023
Discontinued
Operations
Increase
Release to
income
statement
Exchange
differences
and other
changes
12/31/2024
Contract acquisition costs
1,255
(39)
379
(378)
(7)
1,210
Contract execution costs
931
(599)
54
(62)
—
324
Total
2,186
(638)
433
(440)
(7)
1,534
The deferred contractual costs, based on the outstanding amount as of December 31, 2024 without taking
into account the new deferred portions, will be recognized in the income statement in future years, and in
particular about 455 million euros in 2025.
(million euros)
12/31/2024
Year of recognition in the income statement
2025
2026
2027
2028
2029
After
2029
Contract acquisition costs
1,210
359
275
207
145
98
126
Contract execution costs
324
96
72
55
40
24
37
Total
1,534
455
347
262
185
122
163
■
Other deferred costs amounted to 170 million euros, mainly attributable to the Parent Company TIM
S.p.A., the companies of the Telecom Italia Sparkle group and the companies of the Brazil Business Unit.
NOTE 11
INCOME TAX EXPENSE (CURRENT AND
DEFERRED)
Current income tax receivables
Non-current and current income tax receivables at December 31, 2024 amounted to 189 million euros (263
million euros at December 31, 2023).
Specifically, they consisted of:
■
non-current income tax receivables of 65 million euros (72 million euros at December 31, 2023), mainly
relating to the Brazil Business Unit (33 million euros) and the Parent TIM S.p.A. (31 million euros). In detail:
•
Receivables of the Brazil Business Unit include the non-current portion of receivables related to the
Brazilian Supreme Federal Court's decision in September 2021 regarding the non-collection of
corporate income tax and social contribution on the monetary restatement using the SELIC rate in
cases of wrongful payment;
•
the receivables of the Parent Company TIM S.p.A. include non-disposable receivables related to taxes
and interest resulting from the recognized deductibility for IRES purposes of IRAP on labor costs,
relating to years prior to 2012, following the entry into force of Italian Decree Law 16/2012;
■
current income tax receivables of 124 million euros (191 million euros at December 31, 2023), relating to the
companies of the Brazil Business Unit (69 million euros) and the Domestic Business Unit (55 million euros).
Specifically, they include TIM S.A.'s receivables relating to the positive outcome of the above-mentioned
decision of the Brazilian Supreme Federal Court, as well as receivables for taxes paid abroad in the amount
of 17 million euros, the residual IRAP surplus from previous years in the amount of 15 million euros, the tax
consolidation credit in the amount of 13 million euros and other tax credits in the amount of 3 million euros
of the Parent Company TIM S.p.A.
Tax assets and deferred tax liabilities
The net balance of 452 million euros at December 31, 2024 (618 million euros at December 31, 2023) breaks
down as follows:
(million euros)
12/31/2024
12/31/2023
Deferred tax assets
513
701
Deferred tax liabilities
(61)
(83)
Total
452
618
Deferred tax assets at December 31, 2024 mainly refer to the Domestic Business Unit for 340 million euros and
to the Brazil Business Unit for 168 million euros. As at December 31, 2023, deferred tax assets referred to the
Domestic Business Unit for 466 million euros and the Brazil Business Unit for 235 million euros.
TIM Group Consolidated
Financial Statements
Note 10
Miscellaneous receivables and other non-current assets
319
In the 2024 financial statements, the Parent Company TIM S.p.A. did not include IRES deferred tax for current
period and prior period tax losses nor do they include IRAP deferred tax assets/liabilities, (as was the case in the
previous financial statements), in consideration of the assessment of the time frame for recoverability of
deferred tax assets.
Deferred tax liabilities mainly refer to Telecom Italia Capital for 19 million euros (45 million euros at December
31, 2023) and the Domestic Business Unit for 36 million euros (31 million euros at December 31, 2023).
Since the presentation of prepaid and deferred taxes in the financial statements takes into account the offsets
by legal entity when applicable, the composition of the gross amounts before offsets is presented below:
(million euros)
12/31/2024
12/31/2023
Deferred tax assets
1,073
1,307
Deferred tax liabilities
(621)
(689)
Total
452
618
The temporary differences which made up this line item at December 31, 2024 and 2023, as well as the
movements during 2024, were as follows:
(million euros)
12/31/2023
Recognized
in profit or
loss
Recognized in
equity
Change in scope
of consolidation
and other
changes
12/31/2024
Deferred tax assets
Tax loss carryforwards (*)
39
(32)
(3)
4
Derivatives
321
(48)
(1)
272
Provision for bad debts
120
(6)
(8)
106
Provisions
473
14
(62)
425
Taxed depreciation and amortization
130
2
(61)
71
Other deferred tax assets
224
5
—
(34)
195
Total
1,307
(65)
(1)
(168)
1,073
Deferred tax liabilities
Derivatives
(337)
21
—
7
(309)
Business combinations - for step-up of net
assets in excess of tax basis
(101)
(25)
—
15
(111)
Accelerated depreciation
(174)
(16)
32
(158)
Other deferred taxes
(77)
3
31
(43)
Total
(689)
(17)
—
85
(621)
Total Deferred tax assets net of Deferred tax
liabilities
618
(82)
(1)
(83)
452
(*) For the new flow of tax losses in 2024, the Parent Company TIM S.p.A. has not entered deferred tax assets.
The expirations of deferred tax assets and deferred tax liabilities at December 31, 2024 were the following:
(million euros)
Within next
year
Beyond 1 year
Total at
12/31/2024
Deferred tax assets
237
836
1,073
Deferred tax liabilities
(37)
(584)
(621)
Total Deferred tax assets net of Deferred tax liabilities
200
252
452
At December 31, 2024, the TIM Group had unused tax loss carryforwards of 5,055 million euros, mainly relating
to the Parent Company TIM S.p.A. and the company Telecom Italia Finance, with the following expiration
dates:
Year of expiration
(million euros)
2025
—
2026
1
2027
1
2028
—
2029
—
Expiration after 2029
31
Without expiration
5,022
Total unused tax loss carryforwards
5,055
Unused tax loss carryforwards considered in the calculation of deferred tax assets amounted to 16 million
euros at December 31, 2024 (144 million euros at December 31, 2023) and mainly referred to the Brazil
Business Unit and the Telecom Italia Sparkle Group. Deferred tax assets were recognized as it was considered
probable that taxable income will be available in the future against which the tax losses can be utilized.
TIM Group Consolidated
Financial Statements
Note 11
Income tax expense (current and deferred)
320
On the other hand, deferred tax assets of 1,233 million euros (1,036 million euros at December 31, 2023) were
not recognized on 5,039 million euros of tax loss carry-forwards since, at the reporting date, their recoverability
was not considered probable.
At December 31, 2024, deferred tax liabilities were not recognized on approximately 2.7 billion euros of tax-
suspended reserves and undistributed earnings of subsidiaries, because the TIM Group is in a position to control
the timing of the distribution of those reserves and it is probable that those accumulated earnings will not be
distributed in the foreseeable future.
Current income tax payables
Current income tax payables amounted to 45 million euros (27 million euros at December 31, 2023). They break
down as follows:
(million euros)
12/31/2024
12/31/2023
Income tax payables:
non-current
1
—
current
44
27
Total
45
27
The current portion, amounting to 44 million euros, mainly refers to companies in the Domestic Business Unit
(7 million euros) and the Brazil Business Unit (18 million euros). The current tax payables of the Parent
Company TIM S.p.A. are zero (unchanged compared to December 31, 2023).
Non-current tax liabilities, related to the Parent Company, amounted to 1 million euros (not present as of
December 31, 2023).
Income tax expense
The income tax expense for the years 2024 and 2023 breaks down as follows:
(million euros)
2024
2023
Current taxes for the year
91
(93)
Net difference in prior year estimates
1
(2)
Total current taxes
92
(95)
Deferred taxes
82
151
Total income tax expense on continuing operations
(a)
174
56
Income tax expense on Discontinued operations/Non-current assets held
for sale
(b)
51
171
Total income tax expense for the year
(a+b)
225
227
Current taxes refer mainly to companies in the Brazil Business Unit (62 million euros) and the Domestic
Business Unit (8 million euros).
Deferred taxes refer mainly to companies in the Brazil Business Unit (30 million euros) and the Parent
Company TIM S.p.A. (32 million euros, including 2 million euros related to previous years).
TIM Group Consolidated
Financial Statements
Note 11
Income tax expense (current and deferred)
321
The reconciliation between the theoretical tax expense, using the IRES tax rate in force in Italy (24%), and the
effective tax expense for the years ended December 31, 2024 and 2023 is as follows:
(million euros)
2024
2023
Result before tax
From continuing operations
257
(38)
Derived from Discontinued operations/Non-current assets held for sale
(396)
(842)
Total profit (loss) before tax
(139)
(880)
Theoretical income tax expense
(33)
(211)
Income tax effect on increases (decreases) in variations
Tax losses of the year not considered recoverable
218
401
Tax losses from prior years not recoverable (recoverable) in future years
(39)
(51)
Non-deductible write-down of non-current assets
19
—
Brazil: different tax rate compared to the theoretical rate in force in Italy
50
52
Brazil: investment incentives
(57)
(44)
Other net differences
50
40
Actual taxes on income statement, excluding IRAP
208
187
IRAP (Regional Tax on Production Activities)
17
40
Total of actual taxes to income statement
225
227
For the purpose of the tax burden analysis, the impact of IRAP has been kept separate to avoid any distorting
effect, as this tax applies only to Italian companies and is commensurate with a tax base other than pre-tax
income.
∂
Global Minimum Tax
Legislative Decree no. 209 of December 27, 2023, implementing the international tax reform, transposed
European Union Council Directive no. 2022/2523/EU (the “Directive”), which implements the rules developed
by the OECD on Pillar 2 and Global Minimum Tax (“Model Rules” or “GloBE Rules”). The new rules took effect
on January 1, 2024.
To give a very brief overview, the GloBE Rules introduce a coordinated system of rules for multinational groups
with total revenues of 750 million euros or more, aimed at ensuring that they are subject to a minimum tax
level of at least 15% in relation to income generated in each country in which they operate. The GloBE Rules
provide for the application of a top-up tax due if the effective tax rate (“ETR”) calculated for each country
according to the common rules is below 15%, up to that level. The ETR is equal to the ratio of taxes paid (with
adjustments) to accounting profit (with adjustments). Both the calculation of the effective tax rate and the
supplementary tax are done on a jurisdictional (i.e. country-by-country) basis.
The OECD has developed a system of safe harbours (i.e. tests) applicable during the first three-year period of
the GloBE Rules (until 2026), which will make it possible to avoid making the complex calculations required and
to consider the supplementary tax due in a given state to be zero if one of the following tests is passed:
■
de minimis test: aggregate revenue in that state is less than 10 million euros and aggregate pre-tax profit
is less than 1 million euros (or a loss);
■
simplified ETR test: The effective tax level is at least 15% (for 2024), 16% (for 2025) and 17% (for 2026) and
is to be determined on the basis of the ratio of the aggregate values of pre-tax profit/loss (denominator)
and income tax (numerator);
■
routine profit test: the economic substance present in a given jurisdiction (calculated assuming a given
implied profitability of tangible assets and personnel costs located in the jurisdiction) is greater than the
aggregate amount of pre-tax profit/loss. In the event that the group is found to have a pre-tax loss, the
test will be regarded as positive.
As part of the scope of application of the GloBE Rules, TIM S.p.A. has been engaged for some time in analyzing
the new rules and structuring an internal process for collecting the data necessary to make the calculations
expected when fully implemented.
TIM S.p.A. carried out a preliminary analysis of 2024 data with reference to the application of safe harbours to
the jurisdictions in which it operates. From the calculations made and based on the best interpretation of
documents published by the OECD, virtually all countries pass at least one of the tests. The only notable
exception concerns the jurisdiction of Luxembourg, which does not appear to be covered by any of the safe
harbors examined. In this regard, it should be noted that Luxembourg has adopted by domestic legislation the
GloBE Rules and the respective Qualified Domestic Minimum Top-Up Tax (also "QDMTT") has been in effect
since 2024. Although further studies are still being carried out on the matter, it is believed that there are valid
reasons why, in any case, no additional material imposition should emerge from this situation in the analyzed
jurisdiction.
TIM Group Consolidated
Financial Statements
Note 11
Income tax expense (current and deferred)
322
NOTE 12
INVENTORIES
These decreased by 48 million euros compared to December 31, 2023. The breakdown is as follows:
(million euros)
12/31/2024
12/31/2023
Raw materials and supplies
3
2
Work in progress and semifinished products
2
2
Finished goods
251
314
Deposits on stocks
41
27
Total
297
345
Inventories essentially consist of fixed and mobile telecommunications equipment and handsets and related
accessories, as well as office products and specialist printers.
Inventories consist of 251 million euros for the Domestic Business Unit (283 million euros at December 31, 2023)
and 46 million euros for the Brazil Business Unit (62 million euros at December 31, 2023).
“Deposits on stocks” referred to deposits paid by Telecom Italia Sparkle to construct the Blu-Raman System
(fiber on submarine cables), limited to the component for resale also through finance lease transfer contracts.
Inventories are stated net of a provision for bad debts amounting to 12 million euros at December 31, 2024 (13
million euros at December 31, 2023).
NOTE 13
TRADE AND MISCELLANEOUS RECEIVABLES
AND OTHER CURRENT ASSETS
These decreased by 553 million euros compared to December 31, 2023. The breakdown is as follows:
(million euros)
12/31/2024
of which
Financial
Instruments
12/31/2023
of which
Financial
Instruments
Trade receivables
Receivables from customers
1,750
1,750
1,351
1,351
Receivables from other telecommunications
operators
559
559
1,556
1,556
(a)
2,309
2,309
2,907
2,907
Miscellaneous receivables (current)
Other receivables
(b)
896
69
752
60
Other current assets
Contract assets
28
28
68
68
Deferred contract costs
455
536
Other deferred costs
431
395
Other
27
41
(c)
941
28
1,040
68
Total
(a+b+c)
4,146
2,406
4,699
3,035
Further details on Financial Instruments are provided in the Note 20 "Supplementary disclosure on financial
instruments".
The analyses of the aging of the financial instruments included in Trade and miscellaneous receivables and
other current assets at December 31, 2024 and December 31, 2023 are provided below:
of which overdue from:
(million euros)
12/31/2024
of which
non-
overdue
of which
overdue
0-90 days
91-180
days
181-365
days
More
than 365
days
Trade and miscellaneous receivables
and other current assets
2,406
1,865
541
135
64
128
214
TIM Group Consolidated
Financial Statements
Note 12
Inventories
323
of which overdue from:
(million euros)
12/31/2023
of which
non-
overdue
of which
overdue
0-90 days
91-180
days
181-365
days
More
than 365
days
Trade and miscellaneous receivables
and other current assets
3,035
2,455
580
208
78
97
197
Compared to December 31, 2023, receivables not past due decreased by 590 million euros.
Specifically:
■
the Domestic Business Unit showed a decrease of 536 million euros mainly due to the NetCo transaction;
■
the Brazil Business Unit recorded, excluding the negative foreign exchange effect in 2024, around 98
million euros, an increase of about 44 million euros.
Past-due receivables decreased by 39 million euros compared to December 31, 2023.
Specifically:
■
the Domestic Business Unit recorded a decrease of 105 million euros mainly due to the NetCo transaction;
■
the Brazil Business Unit recorded, excluding the negative foreign exchange effect 2024, around 25 million
euros, an increase of about 91 million euros.
Trade receivables amounted to 2,309 million euros (2,907 million euros at December 31, 2023) and are stated
net of the provision for bad debts of 388 million euros (463 million euros at December 31, 2023). They included
7 million euros (10 million euros at December 31, 2023) of medium/long-term receivables mainly relating to
agreements for the sale of transmission capacity under Indefeasible Rights of Use (IRU).
Trade receivables relate, in particular, to TIM S.p.A. (1,330 million euros) and the Brazil Business Unit (739
million euros).
Movements in the provision for bad debts were as follows:
(million euros)
12/31/2024
12/31/2023
At January 1
463
499
Discontinued Operations
(11)
—
Provision charges to the income statement
184
184
Utilization and decreases
(230)
(225)
Exchange rate differences and other changes
(18)
5
At December 31
388
463
Miscellaneous receivables (current) refer to other receivables amounting to 896 million euros (752 million
euros at December 31, 2023) and are net of a provision for bad debts of 40 million euros (44 million euros at
December 31, 2023). Details are as follows:
(million euros)
12/31/2024
12/31/2023
Advances to suppliers
157
335
Receivables from employees
7
10
Tax receivables
219
185
Receivables for grants from the government and public entities
11
10
Sundry receivables
502
212
Total
896
752
As at December 31, 2024, "tax receivables" refer to the Brazil Business Unit for 143 million euros and to the
Domestic Business for 76 million euros.
Receivables for grants from State and Public Entities pertain mainly to projects not related to network
infrastructure, financed by MISE and the European Community, particularly projects related to Emerging
Technology Centers, while the figure as of December 31, 2023 pertained mainly to projects called Ultra
Broadband-BUL and Broadband-BL, which were subject to contribution as part of the NetCo transaction.
Recognition of these grants in the income statement is made, in the case of capital grants, on a systematic
basis over the useful life of the assets to which the grants relate or, in the case of operating grants, on a
systematic basis over the periods in which the Company recognizes as costs the related expenses that the
grants are intended to offset.
"Sundry receivables" specifically include receivables from TIM S.p.A. for:
■
the receivable for tax consolidation from FiberCop S.p.A. (135 million euros) and from Telenergia S.p.A. (2
million euros);
■
the current portion (98 million euros) of the receivable from FiberCop S.p.A. for services related to the MSA,
which arose as part of the NetCo transaction;
■
the TIM S.p.A. receivables for Universal Service (52 million euros);
■
receivable for repayment of portion of the penalty pertaining to the A514 proceeding (32 million euros), as
per the Council of State ruling of November 13, 2024;
TIM Group Consolidated
Financial Statements
Note 13
Trade and miscellaneous receivables and other current assets
324
■
TIM S.p.A. receivables from social security and pension institutions (48 million euros);
■
miscellaneous receivables of TIM S.p.A. from other TLC operators (27 million euros);
■
TIM S.p.A. receivables for with-recourse assignments to factoring companies (23 million euros).
Other current assets included:
■
Contract assets. This item mainly includes:
•
11 million euros attributable to the parent company TIM S.p.A. due to the effect of the early recognition
of revenues for those bundle contracts (such as bundles of products and services) with individual
performance obligations with a different recognition timing, in which the goods recognized “at a point
in time” are sold at a discounted price, or for those contracts which, by providing for a discount for a
period of time shorter than the minimum contract term, require, pursuant to IFRS 15, a reallocation of
the discount over the minimum contractual term. These Contract Assets are net of the related
impairment provision of 1 million euros;
•
13 million euros from the Parent Company TIM S.p.A.to the work carried out in connection with the "5G
Coverage Plan" under the NRRP projects.
■
Deferred contract costs (455 million euros; 536 million euros at December 31, 2023). There are contractual
costs (mainly technical activation costs and commissions for the sales network) deferred and charged to
the separate income statements according to the expected duration of the contractual relationship with
customers (around 4 years for the mobile business and around 8 years for the fixed-line business). Further
details on Deferred contract costs are provided in the Note 10 “Miscellaneous receivables and other non-
current assets”.
■
Other deferred costs mainly concern:
•
the Parent TIM S.p.A. essentially for: (a) costs related to rental charges and other lease and rental costs
(278 million euros); (b) after-sales expenses on application offers (53 million euros); (c) insurance
premiums (5 million euros); (d) maintenance fees (5 million euros); (e) costs for the purchase of
products and services (3 million euros);
•
to the Telecom Italia Sparkle group mainly pertaining to fees for hosting, maintenance and
transmission capacity services (15 million euros);
•
to the Brazil Business Unit (15 million euros) for maintenance contracts, insurance and marketing
activities.
NOTE 14
DISCONTINUED OPERATIONS /NON-CURRENT
ASSETS HELD FOR SALE
At its meeting of July 6, 2022, TIM's Board of Directors approved the strategic objective of reorganizing the
Company with the aim of leaving behind the Company’s vertical integration.
In November 2023, the Board of Directors of TIM S.p.A., as a result of an extensive and thorough review
conducted with the assistance of leading financial and legal advisors, reviewed and accepted the binding offer
submitted on October 16, 2023 by Kohlberg Kravis Roberts & Co. L.P. ("KKR") for the purchase of TIM's fixed-line
network assets and equity interests held in FiberCop S.p.A. and Telenergia S.r.l. (also referred to as the
"NetCo"), by Optics BidCo S.p.A. (a subsidiary of KKR) (hereinafter referred to as the "NetCo Disposal").
Following acceptance of the offer, TIM S.p.A. then signed a Transaction Agreement with Optics BidCo that
provided:
■
the contribution by TIM S.p.A. of a business unit (the "Business Unit") - consisting of the activities related to
the Primary Network, the so-called""Wholesale" business and the entire stake in the subsidiary Telenergia
S.r.l. - in FiberCop S.p.A. ("FiberCop"), a company that already managed the activities related to the
secondary fiber and copper network, and
■
the simultaneous purchase by Optics Bidco of the entire shareholding held by TIM S.p.A. in FiberCop S.p.A.
itself, following the aforementioned transfer.
The Transaction Agreement also provided that the consideration for the sale of the stake could also be partially
paid through the transfer to Optics BidCo of part of the TIM Group's debt at the same time as the closing of the
NetCo Disposal ( Liability Management/ Exchange Offers).
In detail, three Exchange Offers were made of new bonds issued by Optics BidCo with bonds previously issued
by TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A. As of the closing date, a par value of
3,669,680,000 euros was exchanged for bonds issued by TIM S.p.A. and Telecom Italia Finance S.A., and a par
value of USD 2,000,011,000 for bonds issued by Telecom Italia Capital S.A. The new bonds issued by Optics
BidCo have essentially the same terms as the corresponding original bond series, including maturity, interest
rate, interest payment dates and so-called restrictive covenants.
Preliminary activities carried out by TIM S.p.A. for the Disposal of NetCo include obtaining the following
authorizations:
■
authorization on distortionary foreign subsidies and authorization under the Golden Power framework
(obtained in January 2024);
■
authorization of the divestment from the European Commission (obtained in May 2024).
TIM Group Consolidated
Financial Statements
Note 13
Trade and miscellaneous receivables and other current assets
325
Following those authorizations being obtained, TIM S.p.A. made the transfer of the Business Unit to FiberCop
with effect on July 1, 2024. also on July 1, 2024, TIM S.p.A. transferred to Optics Bidco the entire stake it held in
the share capital of FiberCop and signed, with FiberCop, the so-called Master Services Agreement governing
the terms and conditions of the services that are rendered between NetCo and TIM S.p.A.. .
The total consideration for the sale of NetCo amounted to 10,536 million euros, of which 4,247 million euros
were settled through cash and other cash equivalents, 5,534 million euros related to the face value of bonds
subject to "Exchange Offers," and 755 million euros related to the fair value recognition of usage rights on B2B
connectivity (with varying durations between 7 and 20 years); The total consideration does not take into
account any additional adjustments related to the usual post-closing price adjustment mechanisms.
As part of the transaction, there is also provision for the recognition of possible earn-outs in favor of TIM, linked
to the occurrence of future events such as, in particular:
■
the completion, during the 30 months following the closing date (July 1, 2024), of certain potential
consolidation transactions involving NetCo and to the possible introduction of regulatory changes suitable
for generating benefits in favor of NetCo, which could result in the payment to TIM of up to 2.5 billion euros;
■
the introduction and entry into force by December 31, 2025, of industry incentives that could result in the
payment to TIM of up to 400 million euros.
It is finally recalled that the Master Services Agreement governing the relationship between TIM S.p.A. and
NetCo became effective as of July 1, 2024.
∂
The component items of "Profit (loss) from Discontinued operations/Non-current assets held for sale" within
the consolidated separate income statement are as follows:
(million euros)
2024
2023
Economic effects of Discontinued operations / Non-current assets
held for sale:
Revenues
892
1,985
Other income
28
65
Acquisition of goods and services
(37)
(73)
Employee benefits expenses
(558)
(1,037)
Other operating expenses/Change in inventories/Internally generated
assets
49
125
Operating profit (loss) before depreciation and amortization, capital
gains (losses) and impairment reversals (losses) on non-current
assets (EBITDA)
374
1,065
Depreciation and amortization
(765)
(1,571)
Gains (losses) on disposals of non-current assets
—
—
Impairment reversals (losses) on non-current assets
—
—
Operating profit (loss) (EBIT)
(391)
(506)
Share of profit (losses) of associates and joint ventures accounted for
using the equity method and Other income/(expenses) from
investments
—
—
Net financial income/expense and other from investments
(188)
(336)
Earnings before tax from Discontinued operations/Non-current assets
held for sale
(579)
(842)
Income tax expense
(51)
(171)
Profit (loss) from Discontinued operations / Non current assets held
for sale
(a)
(630)
(1,013)
Economic effects on disposing entities:
Gross capital gain related to the disposal
325
Incidental charges and other minor items related to the sale of NetCo
(142)
Income tax expense related to the disposal
—
(b)
183
Profit (loss) from Discontinued operations / Non current assets held
for sale
(a+b)
(447)
(1,013)
Attributable to:
Owners of the Parent
(511)
(1,171)
Non-controlling interests
64
158
TIM Group Consolidated
Financial Statements
Note 14
Discontinued operations/Non-current assets held
for sale
326
Economic effects of “Discontinued operations / Non-current assets held for sale” include:
■
NetCo's economic performance (-630 million in 2024; -1,013 million in 2023) , the sale of which was
finalized on July 1, 2024;
■
in fiscal year 2024 the gross capital gain related to the sale of NetCo (325 million) and related incidental
expenses (142 million). The net capital gain is thus 183 million euros.
It should be recalled that the results of the Business Unit being transferred from TIM to FiberCop S.p.A. do not
incorporate in 2023 and the first six months of fiscal year 2024 the positive impacts resulting from the Master
Services Agreement that took effect on July 1, 2024 and regulates the provision of services between the two
entities.
On the disposal, NetCo's assets and liabilities were detailed as follows:
NetCo - Assets of a financial nature
(million euros)
Non-current financial assets
78
Current financial assets
226
of which Cash and cash equivalents
105
Total
304
NetCo - Assets of a non-financial nature
(million euros)
Non-current assets
Goodwill
7,920
Intangible assets with a finite useful life
196
Tangible assets
9,818
Rights of use assets
2,568
Other non-current assets
581
21,083
Current assets
1,298
Total
22,381
NetCo - Liabilities of a financial nature
(million euros)
Non-current financial liabilities
5,625
Current financial liabilities
290
Total
5,915
In the context of the NetCo operation, we recall in particular the repayment of the intercompany loan between
FiberCop and TIM S.p.A. for 2.3 billion euros, the deconsolidation of FiberCop's net debts to third parties for 1.4
billion euros and the deconsolidation of financial liabilities for lease agreements for 2 billion euros.
NetCo - Liabilities of a non-financial nature
(million euros)
Non-current liabilities
1,153
Current liabilities
2,408
Total
3,561
Earnings per share from Discontinued operations/Non-current assets held for sale attributable to the
Shareholders of the Parent Company for 2024 and 2023 are as follows:
(euros)
2024
2023
Earnings per share from Discontinued operations/Non-current assets
(b
i )
ordinary share
(0.03)
(0.06)
savings share
(0.03)
(0.06)
Earnings per share from Discontinued operations/Non-current assets
(dil
d)
ordinary share
(0.03)
(0.06)
savings share
(0.03)
(0.06)
TIM Group Consolidated
Financial Statements
Note 14
Discontinued operations/Non-current assets held
for sale
327
Also included in the Consolidated Statement of Comprehensive Income were 11 million euros in 2024 and -5
million euros in 2023 relating to the recognition of changes in actuarial gains/losses included in the Reserve for
remeasurements of defined benefit plans within Discontinued Operations/Non-current Assets Held for Sale.
Therefore, the total income from Discontinued Operations/Non-current Assets held for sale is negative 436
million euros in 2024 and negative 1,018 million euros in 2023.
In the Consolidated Statement of Cash Flows, the net impacts (expressed in terms of contribution to
consolidation) of "Discontinued operations/Non-current assets held for sale" are detailed as follows:
(million euros)
2024
2023
Discontinued operations /Non-current assets held for sale:
Cash flows from (used in) operating activities
(672)
(275)
Cash flows from (used in) investing activities
(421)
(517)
Cash flows from (used in) financing activities
(151)
(299)
Total
(1,244)
(1,091)
TIM Group Consolidated
Financial Statements
Note 14
Discontinued operations/Non-current assets held
for sale
328
NOTE 15
EQUITY
This item consisted of:
(million euros)
12/31/2024
12/31/2023
Equity attributable to owners of the Parent
11,957
13,646
Non-controlling interests
1,404
3,867
Total
13,361
17,513
The composition of Equity attributable to owners of the Parent is the following:
(million euros)
12/31/2024
12/31/2023
Share capital
11,624
11,620
Additional paid-in capital
—
575
Other reserves and retained earnings (accumulated losses), including profit
(loss) for the year
333
1,451
Reserve for financial assets measured at fair value through other
comprehensive income
(6)
(22)
Reserve for hedging instruments
(76)
(80)
Reserve for exchange differences on translating foreign operations
(2,439)
(1,959)
Reserve for remeasurements of employee defined benefit plans (IAS 19)
(66)
(79)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method
—
—
Sundry reserves and retained earnings (accumulated losses), including
profit (loss) for the year
2,920
3,591
Total
11,957
13,646
As of December 31, 2024, the Share Capital is 11,624 million euros, already net of treasury shares of 53 million
euros. Capital increased by 4 million euros as a result of the allocation of treasury shares in execution of the
second cycle of the Long Term Incentive Plan 2020-2022.
It should be noted that the Parent Company's Share Capital is subject to a tax suspension restriction for tax
purposes in the amount of 1,191 million euros (unchanged from December 31, 2023).
Movements in Share Capital during 2024 are presented in the following tables:
Reconciliation between the number of shares outstanding at December 31, 2023 and December 31, 2024
(number of shares)
as at 12/31/2023
Share
assignment/
issue
as at 12/31/2024
% of Share
Capital
Ordinary shares Issued
(a)
15,329,466,496
—
15,329,466,496
71.78%
less: treasury shares
(b)
(105,062,422)
8,619,620
(96,442,802)
Ordinary shares outstanding
(c)
15,224,404,074
8,619,620
15,233,023,694
Savings shares issued and outstanding
(d)
6,027,791,699
—
6,027,791,699
28.22%
Total TIM S.p.A. shares issued
(a+d)
21,357,258,195
—
21,357,258,195
100.00%
Total TIM S.p.A. shares outstanding
(c+d)
21,252,195,773
8,619,620
21,260,815,393
TIM Group Consolidated
Financial Statements
Note 15
Equity
329
Reconciliation between the value of shares outstanding at December 31, 2023 and December 31, 2024
(million euros)
Share capital at
Dec 31, 2023
Change in share
capital
Share
capital at
Ordinary shares Issued
(a)
8,381
—
8,381
less: treasury shares
(b)
(57)
4
(53)
Ordinary shares outstanding
(c)
8,324
4
8,328
Savings shares issued and outstanding
(d)
3,296
—
3,296
Total TIM S.p.A. share capital issued
(a+d)
11,677
—
11,677
Total TIM S.p.A. share capital outstanding
(c+d)
11,620
4
11,624
The total value of ordinary treasury shares at December 31, 2024, amounting to 330 million euros, was
recorded as follows: the part relating to accounting par value (57 million euros) recognized as a deduction from
the share capital issued and the remaining part as a deduction from Other reserves and retained earnings
(accumulated losses), including profit (loss) for the year.
Disclosure on share capital
The ordinary and savings shares of TIM S.p.A. are listed in Italy (FTSE index).
In the shareholder resolutions passed to increase share capital against cash payments, the pre-emption right
can be excluded to the maximum extent of ten percent of the pre-existing share capital, on condition that the
issue price corresponds to the market price of the shares and that this is confirmed in a specific report issued
by the firm charged with the audit of the Company.
The Group sources itself with the capital necessary to fund its business development and operation
requirements; the sources of funds are found in a balanced mix of equity, permanently invested by the
shareholders, and debt capital, to guarantee a balanced financial structure and minimize the total cost of
capital, with a resulting advantage to all the stakeholders.
Debt capital is structured according to different maturities and currencies to ensure an adequate diversification
of the sources of funding and an efficient access to external sources of financing (taking advantage of the best
opportunities offered in the financial markets of the euro and U.S. dollar areas to minimize costs), taking care
to reduce the refinancing risk.
The remuneration of equity is proposed by the Board of Directors to the Shareholders’ Meeting, which meets to
approve the annual financial statements, based upon market trends and business performance, once all the
other obligations are met, including debt servicing. Therefore, to ensure an adequate remuneration of capital,
safeguard company continuity and business development, the Group constantly monitors the change in debt
levels in relation to equity, the level of net debt and the operating margin of industrial operations.
Privileges of savings shares
The privileges of TIM S.p.A. savings shares are indicated below:
■
the profit shown in the duly approved financial statements, after deducting the amount to be allocated to
the legal reserve, must be distributed to the holders of savings shares in an amount up to 5% of the 0.55
euros per share;
■
after assigning preferred dividends to the savings shares, the distribution of which is approved by the
shareholders' meeting, the remaining profit shall be allocated among all the shares, so that savings shares
are entitled to higher overall dividends than ordinary shares would be entitled to, to the extent of 2% of
0.55 euros per share;
■
when, in any one year, dividends of below 5% of the 0.55 euros per share are paid to the savings shares,
the difference is determined as an increase of the privileged dividend in the next two subsequent years;
■
in the event of a distribution of reserves, the savings shares have the same rights as the other shares.
Moreover, when there is no profit or insufficient profit is reported in the financial statements for a given
year to satisfy the aforesaid savings shares privileges, the Shareholders’ Meeting called to approve those
financial statements may choose to satisfy the dividend right and/or the higher dividend right by
distributing available reserves. The distribution of available reserves for such payments excludes the
application of the mechanism extending the right to the preferred dividend not paid through the
distribution of profits for the following two years;
■
the reduction of share capital as a result of losses does not affect the savings shares except for the
amount of the loss which is not covered by the portion of the share capital represented by the other
shares;
■
upon the wind-up of TIM S.p.A., the savings shares have a pre-emption right in the reimbursement of
capital up to the amount of 0.55 euros per share;
■
in the event of the cessation of trading in the Company's ordinary or savings shares, the holder of savings
shares may ask TIM S.p.A. to convert his/her shares into ordinary shares, using the method selected during
a special session of the shareholders' meeting called for that purpose within two months of being excluded
from trading.
The Share Premium Reserve, which amounted to 575 million euros as of December 31, 2023, was zero as of
December 31, 2024 as a result of covering the loss for 2023, as resolved by the Shareholders' Meeting on April
23, 2024.
TIM Group Consolidated
Financial Statements
Note 15
Equity
330
Other reserves moved through the Statements of comprehensive income comprised:
■
The Reserve for financial assets measured at fair value through other comprehensive income, negative
for 6 million euros at December 31, 2024, decreased by 16 million euros compared to the figure at
December 31, 2023. Specifically, the movement in 2024 includes gains in the securities portfolio of Telecom
Italia Finance (25 million euros, of which 3 million euros were realized), losses in the securities portfolio of
Telecom Italia Ventures (2 million euros), losses recognized by Olivetti for the valuation of SECO S.p.A. (17
million euros), profits from other financial assets held by the Parent Company TIM (1 million euros) and
profits from the investment in Fin.Priv. S.r.l. of the Parent Company TIM (9 million euros). This reserve is
stated net of deferred tax assets of 2 million euros (at December 31, 2023, it was stated net of deferred tax
liabilities of 2 million euros).
■
The Reserve for hedging instruments had a negative balance of 76 million euros at December 31, 2024,
(negative 80 million euros at December 31, 2023). This reserve is stated net of deferred tax assets of 23
million euros (at December 31, 2023, it was stated net of deferred tax liabilities of 24 million euros). In
particular, this reserve includes the effective portion of gains or losses on the fair value adjustments of
derivatives designated as hedges of the exposure to volatility in the cash flows of assets or liabilities
recognized in the financial statements ("cash flow hedge").
■
The Reserve for exchange differences on translating foreign operations showed a negative balance of
2,439 million euros at December 31, 2024 (negative 1,959 million euros at December 31, 2023) and mainly
related to exchange differences resulting from the translation into euros of the financial statements of
companies belonging to the Brazil Business Unit (negative for 2,472 million euros versus negative for 1,983
million euros at December 31, 2023).
■
The Reserve for the remeasurement of employee defined benefit plans, negative for 66 million euros,
decreased by 13 million euros compared with December 31, 2023 following the recording of the changes in
actuarial gains (losses), net of the related income tax effect.
■
The Share of other comprehensive income (losses) of associates and joint ventures accounted for using
the equity method is nil at both December 31, 2024 and December 31, 2023.
Other sundry reserves and retained earnings (accumulated losses), including profit (loss) for the year
amounted to 2,920 million euros and decreased by 671 million euros, as detailed below:
(million euros)
2024
2023
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
Dividends approved - TIM S.p.A.
—
—
Equity instruments
—
2
LTI granting of treasury shares
(4)
(6)
Share of loss coverage for the years 2023 and 2022 using Share Premium Reserve
575
1,558
Other changes
(632)
15
Change for the year in Sundry reserves and retained earnings (accumulated losses),
including profit (loss) for the year
(671)
128
No dividends were approved in 2024 and 2023.
Equity attributable to non-controlling interests of 1,404 million euros refers mainly to the companies of the
Brazil Business Unit (1,389 million euros) and decreased by 2,463 million euros compared to December 31, 2023
as detailed below:
(million euros)
2024
2023
Profit (loss) for the year attributable to Non-controlling interests
246
334
Group Company dividends paid to minority shareholders
(158)
(197)
Changes in the Reserve for exchange differences on translating foreign operations
(280)
63
NetCo deconsolidation
(2,283)
—
Other changes
12
3
Change for the year in Equity attributable to Non-controlling interest
(2,463)
203
Dividends from Group companies to minority shareholders mainly referred to the Brazil Business Unit for 158
million euros. Dividends in 2023 mainly referred to the Brazil Business Unit in the amount of 136 million euros
and FiberCop S.p.A. in the amount of 61 million euros.
The Reserve for exchange differences on translating foreign operations attributable to non-controlling interest
showed a negative balance of 1,190 million euros at December 31, 2024 (negative for 910 million euros at
December 31, 2023), relating entirely to exchange differences arising from the translation into euros of the
financial statements of the companies belonging to the Brazil Business Unit.
Future potential changes in share capital
Details of “Future potential changes in share capital” are presented in Note 38 “Earnings per share”.
TIM Group Consolidated
Financial Statements
Note 15
Equity
331
NOTE 16
NON-CURRENT AND CURRENT FINANCIAL
LIABILITIES
Non-current and current financial liabilities (gross financial debt) are broken down as follows:
(million euros)
12/31/2024
12/31/2023
Non-current financial liabilities for financing contracts and others
Financial payables (medium/long-term):
Bonds
7,527
15,297
Amounts due to banks
701
5,262
Other financial payables
303
310
8,531
20,869
Other medium/long-term financial liabilities:
Hedging derivatives relating to hedged items classified as non-current
assets/liabilities of a financial nature
170
397
Non-hedging derivatives
26
15
Other liabilities
1
3
197
415
(a)
8,728
21,284
Non-current financial liabilities for lease contracts
(b)
2,421
4,743
Total non-current financial liabilities
c=(a+b)
11,149
26,027
Current financial liabilities for financing contracts and others
Short-term financial liabilities:
Bonds
2,401
3,266
Amounts due to banks
1,144
2,145
Other financial payables
257
242
3,802
5,653
Other short-term financial liabilities:
Hedging derivatives relating to hedged items classified as current
assets/liabilities of a financial nature
23
66
Non-hedging derivatives
44
51
Other liabilities
1
1
68
118
(d)
3,870
5,771
Current financial liabilities for lease contracts
(e)
523
838
Total current financial liabilities
f=(d+e)
4,393
6,609
Financial liabilities directly associated with Discontinued operations/
Non-current assets held for sale
(g)
—
—
Total financial liabilities (Gross financial debt)
h=(c+f+g)
15,542
32,636
Further details on Financial Instruments are provided in the Note 20"Supplementary disclosures on financial
instruments".
In April 2024, TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A made an Offer to Exchange
Existing EUR and USD denominated Notes for New Notes to Bondholders in preparation for the Netco
transaction. Exchange operations concluded in May 2024.
The new bonds have substantially the same terms as the corresponding series of original bonds, including in
terms of their maturity, interest rate, interest payment dates and restrictive covenants, with the exception of
the clause for the exchange of new bonds to Optics BidCo S.p.A. ("Optics") on the date of the completion of
the NetCo transaction.
The table below summarizes the Notes still with the TIM Group and those subsequently transferred to Optics
on July 1, 2024:
TIM Group Consolidated
Financial Statements
Note 16
Non-current and current financial liabilities
332
Currency
Nominal value of
original notes
Coupon
Maturity date
Original notes
TIM Group
(nominal value)
New Notes
transferred to Optics
(nominal value)
Bonds issued by TIM S.p.A.
Euro
750,000,000
2.875%
1/28/26
375,000,000
375,000,000
Euro
1,000,000,000
3.625%
5/25/26
677,997,000
322,003,000
Euro
1,250,000,000
2.375%
10/12/27
742,285,000
507,715,000
Euro
1,250,000,000
6.875%
2/15/28
625,000,000
625,000,000
Euro
1,500,000,000
7.875%
7/31/28
750,000,000
750,000,000
Euro
1,000,000,000
1.625%
1/18/29
499,180,000
500,820,000
Euro
670,000,000
5.250%
3/17/55
440,000,000
230,000,000
Bonds issued by Telecom Italia Finance S.A.
Euro
1,015,000,000
7.750%
1/24/33
655,858,000
359,142,000
Bonds issued by Telecom Italia Capital S.A.
USD
1,000,000,000
6.375%
11/15/33
499,994,000
500,006,000
USD
1,000,000,000
6.000%
9/30/34
499,999,000
500,001,000
USD
1,000,000,000
7.200%
7/18/36
500,000,000
500,000,000
USD
1,000,000,000
7.721%
6/4/38
499,996,000
500,004,000
Gross financial debt according to the original currency of the transaction is as follows:
12/31/2024
12/31/2023
(millions in foreign
currency)
(million euros)
(millions in foreign
currency)
(million euros)
USD
2,044
1,967
5,696
5,155
BRL
21,258
3,304
21,670
4,051
JPY
20,042
123
20,033
128
ILS
33
9
44
11
EUR
10,139
23,291
Total
15,542
32,636
For the exchange rates used for the conversion of amounts in foreign currency, see the Note 44 "Other
information".
The breakdown of gross financial debt by effective interest-rate bands applicable to the original currency is
provided below, excluding the effect of any derivative hedging instruments:
(million euros)
12/31/2024
12/31/2023
Up to 2.5%
1,178
4,138
From 2.5% to 5%
5,313
9,907
From 5% to 7.5%
3,425
10,309
From 7.5% to 10%
2,265
3,742
Over 10%
2,780
3,389
Accruals/deferrals, MTM and derivatives
581
1,151
Total
15,542
32,636
Following the use of hedging instruments, on the other hand, gross financial debt by nominal interest rate
band is as follows:
(million euros)
12/31/2024
12/31/2023
Up to 2.5%
2,103
6,390
From 2.5% to 5%
5,328
8,443
From 5% to 7.5%
2,867
9,719
From 7.5% to 10%
1,515
2,917
Over 10%
3,148
4,016
Accruals/deferrals, MTM and derivatives
581
1,151
Total
15,542
32,636
TIM Group Consolidated
Financial Statements
Note 16
Non-current and current financial liabilities
333
The maturities of financial liabilities according to the expected nominal repayment amount, as defined by
contract, are the following:
maturing by 12/31 of the year:
(million euros)
2025
2026
2027
2028
2029
Oltre 2029
Total
Bonds
2,183
1,319
1,008
1,595
499
3,021
9,625
Loans and other financial liabilities
900
144
430
38
246
(242)
1,516
Finance lease liabilities
455
334
331
315
296
1,145
2,876
Total
3,538
1,797
1,769
1,948
1,041
3,924
14,017
Current financial liabilities
525
—
—
—
—
—
525
Total
4,063
1,797
1,769
1,948
1,041
3,924
14,542
The main components of financial liabilities are commented below.
Bonds are broken down as follows:
(million euros)
12/31/2024
12/31/2023
Non-current portion
7,527
15,297
Current portion
2,401
3,266
Total carrying amount
9,928
18,563
Fair value adjustment and measurements at amortized cost
(303)
(517)
Total nominal repayment amount
9,625
18,046
The nominal repayment amount of bonds totaled 9,625 million euros, down 8,421 million euros compared to
December 31, 2023 (18,046 million euros) as a result of the repayments during 2024 and the sale of NetCo.
The change in bonds during 2024 was as follows:
(millions in original currency)
Currency
Amount
Repayment date
Repayments
Telecom Italia S.p.A. 450 million euros 3.625%
Euro
450
1/19/24
Telecom Italia S.p.A. 950 million euros 4.000%
Euro
950
4/11/24
Telecom Italia S.p.A. 1,500 million USD 5.303%
USD
1,500
5/30/24
TIM Brasil 5,000 million BRL CDI+2.3%
BRL
294
7/25/24
TIM Brasil 5,000 million BRL CDI+2.3%
BRL
294
10/25/24
The following table summarizes the bonds issued by TIM Group companies, listed by issuing company,
expressed at the nominal repayment amount, net of bond buy-backs, and at market value. As noted above, on
July 1, 2024 a portion of these notes was transferred to Optics following the sale of NetCo:
TIM Group Consolidated
Financial Statements
Note 16
Non-current and current financial liabilities
334
Currency
Total
(millions)
Nominal
repayment
amount
Coupon
Issue date
Maturity
date
Issue price
(%)
Market
price at
December
31, 2024
Market
value at
December
31, 2024
(million
euros)
(%)
(million
euros)
Bonds issued by TIM S.p.A.
Euro
1,000
1,000
2.750%
15/4/19
15/4/25
99.320
99.653
996
Euro
1,000
1,000
3.000%
30/9/16
30/9/25
99.806
99.676
997
Euro
375
375
2.875%
28/6/18
1/28/26
100
100.285
376
Euro
678
678
3.625%
25/5/16
5/25/26
100
101.275
687
Euro
742
742
2.375%
12/10/17
10/12/27
99.185
99.332
737
Euro
625
625
6.875%
27/1/23
2/15/28
(*) 100.240
109.394
684
Euro
750
750
7.875%
20/7/23
7/31/28
(*) 100.998
113.346
850
Euro
499
499
1.625%
1/18/21
1/18/29
99.074
94.100
470
Euro
440
440
5.250%
17/3/05
3/17/55
99.667
101.298
446
Subtotal
6,109
6,243
Bonds issued by Telecom Italia Finance S.A. and guaranteed by TIM S.p.A.
Euro
656
656
7.750%
24/1/03
1/24/33
(*) 109.646
123.961
813
Subtotal
656
813
Bonds issued by Telecom Italia Capital S.A. and guaranteed by TIM S.p.A.
USD
500
481.3
6.375%
29/10/03
11/15/33
99.558
99.788
480
USD
500
481.3
6.000%
6/10/04
9/30/34
99.081
96.644
465
USD
500
481.3
7.200%
18/7/06
7/18/36
99.440
100.848
486
USD
500
481.3
7.721%
4/6/08
6/4/38
100
103.534
498
Subtotal
1,925
1,929
Bonds issued by TIM S.A.
BRL
1,600
249
IPCA+4.1682%
15/6/21
15/6/28
100
113.703
283
Subtotal
249
283
Bonds issued by TIM Brasil Serviços e Participações S.A.
BRL
4,412
686
CDI+2.3%
31/7/23
25/7/28
100
91.919
630
Subtotal
686
630
Total
9,625
9,898
(*) Weighted average issue price for bonds issued with more than one tranche.
The regulations and the offering circulars relating to the bonds of the TIM Group are available on the Group’s
website gruppotim.it.
Amounts due to banks (medium/long-term) amounted to 701 million euros (5,262 million euros at December
31, 2023); of particular note where the early repayment on July 10, 2024 of the syndicated, SACE-guaranteed 2
billion euro credit line subscribed by TIM S.p.A. on July 6, 2022 and the deconsolidation of the 1.5 billion euro
bank loan held by FiberCop S.p.A. as part of the NetCo deal. Amounts due to banks (short-term) totaled 1,144
million euros (2,145 million euros at December 31, 2023) and included 868 million euros as the current portion
of amounts due to banks (medium/long-term).
Other medium/long-term financial payables totaled 303 million euros (310 million euros at December 31,
2023), 121 million euros of which refer to the Telecom Italia Finance S.A. loan for JPY 20,000 million, maturing
in 2029. Other short-term financial payables amounted to 257 million euros (242 million euros at December 31,
2023) and included 57 million euros as the current portion of other medium/long-term financial payables.
Medium/long-term financial liabilities for lease contracts amounted to 2,421 million euros (4,743 million
euros at December 31, 2023), whilst short-term payables totaled 523 million euros (838 million euros at
December 31, 2023) and included 474 million euros as the current portion of medium/long-term financial
liabilities for lease contracts.
With reference to the financial lease liabilities net of Discontinued Operations recognized in 2024 and 2023, the
following is noted:
(million euros)
2024
2023
Principal reimbursements
434
443
Cash out interest portion
308
309
Total
742
752
Hedging derivatives relating to items classified as non-current financial liabilities amounted to 170 million
euros (397 million euros at December 31, 2023). Hedging derivatives relating to items classified as current
financial liabilities amounted to 23 million euros (66 million euros at December 31, 2023).
TIM Group Consolidated
Financial Statements
Note 16
Non-current and current financial liabilities
335
Non-hedging derivatives classified as non-current financial liabilities came to 26 million euros (15 million euros
at December 31, 2023), while non-hedging derivatives classified as current financial liabilities amounted to 44
million euros (51 million euros at December 31, 2023). These also include the measurement of derivatives
which, although put into place for hedging purposes, do not possess the formal requisites to be considered as
such under IFRS.
Covenants and negative pledges in place at December 31, 2024
The bonds issued by TIM S.p.A., Telecom Italia Finance S.A. and Telecom ltalia Capital S.A. do not contain
financial covenants of any kind (e.g. Debt/EBITDA ratio, EBITDA/Interest, etc.) or clauses that would entail the
automatic early repayment of loans in the event of non-insolvency events of the TIM Group; moreover, the
repayment of bonds and the payment of interest are not backed by specific guarantees, nor are there any
commitments to issue future guarantees, with the exception of the full and unconditional guarantees granted
by TIM S.p.A. for bonds issued by Telecom Italia Finance S.A. and Telecom Italia Capital S.A..
Since these are mainly transactions placed with institutional investors on the main global capital markets
(Euromarket and USA), the terms governing the loans are in line with the market practice for similar
transactions carried out on the same markets.
The documentation concerning the loans taken out by TIM contain the usual other types of covenants,
including the commitment not to pledge the Company’s assets as collateral for loans (negative pledge) and
the commitment not to change the business purpose or sell the assets of the Company unless specific
conditions exist (e.g. the sale takes place at fair market value). Covenants with basically the same content can
be found in the export credit loan agreement.
In the loan agreements, TIM is required to provide notification of change of control. Events constituting a
change of control and the applicable consequences – including, at the discretion of the investors, the
establishment of guarantees or the early repayment of the amount paid in cash and the cancellation of the
commitment in the absence of agreements to the contrary – are specifically identified in each agreement.
In addition, the outstanding loans generally contain a commitment by TIM, any breach of which constitutes an
Event of Default, not to implement mergers, demergers or transfers of business, involving entities outside the
Group, except where certain conditions exist. Such an Event of Default may entail, upon request of the Lender,
the
early repayment of the drawn amounts and/or the annulment of the undrawn commitment.
On May 19, 2021 – specifically with regard to the loans taken out by TIM with the European Investment Bank
("EIB") – TIM took out a loan of 230 million euros to support national digitalization projects (for which early
repayment was made in full on November 15, 2024) and extended the loan taken out in 2019 (initial for 350
million euros) by an additional 120 million euros.
In addition, on May 5, 2023, TIM took out a new loan with the EIB for 360 million euros, partially guaranteed by
SACE.
Therefore, at December 31, 2024 the nominal total of outstanding loans with the EIB was 830 million euros.
Loans taken out with the EIB contain the following covenants and commitments, among others:
■
if the Company is subject to a merger, demerger or transfer of a business unit outside the TIM Group, or
disposes of, divests or transfers assets or business units (with the exception of certain disposals expressly
permitted), it must immediately notify the EIB, which will have the right to request the provision of
guarantees or the amendment of the loan agreement, or the early repayment of the loan (if a merger and
demerger transaction outside the TIM Group jeopardizes the execution or operation of the Project or is
detrimental to the EIB in its capacity as creditor);
■
TIM has undertaken to ensure that, for the entire duration of the loan, the total financial debt of the
companies belonging to the TIM Group other than TIM, and except where such debt is fully and irrevocably
guaranteed by TIM, this will be less than 35% (thirty-five per cent) of the total financial debt of the TIM
Group;
■
"Clause for inclusion", where, if TIM undertakes to maintain financial parameters in other loan agreements
(and also certain more stringent clauses, such as cross defaults and commitments to limit the sale of
assets) that are not present or are more stringent than those granted to the EIB, the latter will have the
right to request, if it considers in its reasonable opinion that such changes may have negative
consequences on TIM's financial capacity, the provision of guarantees or the amendment of the loan
agreement to provide for an equivalent provision in favor of the EIB.
Some contracts for outstanding loans granted to certain TIM Group companies as at December 31, 2024,
contain obligations to comply with certain financial ratios, as well as the usual other covenants, under penalty
of a request for the early repayment of the loan.
Finally, as at December 31, 2024, no covenant, negative pledge or other clause relating to the aforementioned
debt position had in any way been breached or violated. nor are any difficulties in complying with the
covenants expected in the near future.
Revolving Credit Facility
The following table shows committed credit lines(*) available at December 31, 2024:
(billions of euros)
12/31/2024
12/31/2023
Agreed
Drawn down
Agreed
Drawn down
Sustainability-linked RCF – May 2026
4.0
—
4.0
—
Total
4.0
—
4.0
—
TIM Group Consolidated
Financial Statements
Note 16
Non-current and current financial liabilities
336
(*) In accordance with the contract signed, the Banks have committed to make the funds available on demand (with at least 3 days’ notice). As this
is a “Committed” line, the banks have no mechanisms in place not to honor the request for funds made by the Company, without prejudice to the
market standard early mandatory cancellation clauses (Natural contract expiry, Change in control, Borrower illegality, Events of default each as
defined in the contract).
Rating
At December 31, 2024, the three rating agencies – Standard & Poor’s, Moody’s and Fitch Ratings – rated TIM as
follows:
Rating
Outlook
STANDARD & POOR’S
BB
stable
MOODY'S
Ba3
positive
FITCH RATINGS
BB
stable
NOTE 17
NET FINANCIAL DEBT
The table below shows the breakdown of net financial debt of the TIM Group at December 31, 2024 and
December 31, 2023, determined in accordance with the provisions of the “Guidelines on disclosure requirements
under the Prospectus Regulation” issued by the ESMA (European Securities & Markets Authority) on March 4,
2021 (ESMA32-382-1138) and incorporated by Consob with its Note of Attention no. 5/21 dated April 29, 2021.
This table also shows the reconciliation of the net financial debt determined according to the aforementioned
criteria indicated by the ESMA and net financial debt calculated according to the criteria of the TIM Group.
(million euros)
12/31/2024
12/31/2023
Liquid assets with banks, financial institutions and post offices
(a)
2,428
2,294
Other cash and cash equivalents
(b)
496
618
Securities other than investments
(c)
1,539
1,882
Liquidity
(d=a+b+c)
4,463
4,794
Current financial debt (including debt instruments, but excluding
the current portion of non-current financial debt)
(e)
527
1,391
Current portion of non-current financial debt
(f)
3,759
5,044
Current financial debt
(g=e+f)
4,286
6,435
Net current financial debt
(h=g-d)
(177)
1,641
Non-current financial debt (excluding current portion and debt
instruments)
(i)
2,987
9,667
Debt instruments
(j)
7,527
15,297
Trade payables and other non-current debt
(k)
51
68
Non-current financial debt
(l=i+j+k)
10,565
25,032
Total net financial debt as per ESMA guidelines 32-382-1138
(m=h+l)
10,388
26,673
Trade payables and other non-current debt
(51)
(68)
Non-current financial receivables arising from lease contracts
(40)
(112)
Current financial receivables arising from lease contracts
(44)
(162)
Financial receivables and other current financial assets
(5)
(515)
Other financial receivables and other non-current financial assets
(11)
(40)
Financial assets/liabilities relating to discontinued operations/non-
current assets held for sale
—
—
Subtotal
(n)
(151)
(897)
Net financial debt carrying amount (*)
(p=m+n)
10,237
25,776
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(q)
(111)
(120)
Adjusted Net Financial Debt
(r=p+q)
10,126
25,656
(*) For the impact of Related-Party Transactions on Net Financial Debt, reference should be made to the table included in the Note "Related-party
transactions".
TIM Group Consolidated
Financial Statements
Note 16
Non-current and current financial liabilities
337
Additional cash flow information required by IAS 7
Cash movements
Non-cash movements
(million euros)
31.12.2023
Receipts
and/or
Issues
Payments
and/or
reimbursem
ents
Exchange
difference
s
Fair value
changes
Other
changes
and
reclassifica
tions
31.12.2024
Financial payables (medium/long-term):
Bonds
18,563
(2,888)
(12)
(79)
(5,656)
9,928
Amounts due to banks
6,295
1,886
(5,078)
(36)
(1,498)
1,569
Other financial payables
326
(31)
(36)
101
360
(a)
25,184
1,886
(7,997)
(84)
(79)
(7,053)
11,857
of which short-term
4,315
3,326
Medium/long-term finance lease
liabilities:
5,529
—
(434)
(390)
(1,810)
2,895
(b)
5,529
—
(434)
(390)
—
(1,810)
2,895
of which short-term
786
474
Other medium/long-term financial
liabilities:
Hedging derivative liabilities relating to
hedged items classified as non-current
assets/liabilities of a financial nature
463
(15)
(229)
(26)
193
Non-hedging derivative liabilities
66
(17)
26
(6)
69
Other liabilities
3
(2)
1
(c)
532
—
—
(32)
(203)
(34)
263
of which short-term
117
66
Short-term financial liabilities:
Amounts due to banks
1,112
(836)
276
Other financial payables
279
1
(29)
251
(d)
1,391
—
—
1
—
(865)
527
Financial liabilities directly associated
with Discontinued operations/Non-
current assets held for sale:
(e)
—
—
(151)
—
—
151
—
Total financial liabilities (Gross financial
debt)
(f=a+b+c+d+e)
32,636
1,886
(8,582)
(505)
(282)
(9,611)
15,542
Hedging derivative assets relating to
hedged items classified as non-current
and current assets/liabilities of a financial
nature
(g)
1,085
(205)
(264)
(30)
586
Non-hedging derivative receivables
(h)
152
7
(9)
6
156
Total
(i=f-g-h)
31,399
1,886
(8,582)
(307)
(9)
(9,587)
14,800
The change in short-term payables to banks (836 million euros) is due to a change in cash flows mainly due to
the opening/closing of repurchased credit agreements and bank credit lines.
Changes related to Financial liabilities directly associated with Discontinued operations/Non-current assets
held for sale refer to liabilities for medium/long-term financial leases.
The value of the paid and collected interest expense for Continuing Operations reported in the Statements of
Cash Flows takes into account the movements relating to transactions in CCIRS derivatives to hedge
underlying assets in both the assets component (collections) and the liabilities component (payments) without
netting the positions.
(million euros)
2024
2023
Interest expense paid
(1,839)
(1,931)
Interest income received
553
718
Net total
(1,286)
(1,213)
To consider the components of CCIRS derivatives as a single transaction, a representation is given with interest
flows in and out shown net. This approach gives the following results:
(million euros)
2024
2023
Interest expense paid
(1,573)
(1,569)
Interest income received
287
356
Net total
(1,286)
(1,213)
TIM Group Consolidated
Financial Statements
Note 17
Net financial debt
338
NOTE 18
FINANCIAL RISK MANAGEMENT
Financial risk management objectives and policies of the TIM
Group
The TIM Group is exposed to the following financial risks in the ordinary course of its business operations:
■
Market risk: stemming from changes in interest rates and exchange rates in connection with financial
assets that have been originated and financial liabilities that have been assumed;
■
Credit risk: representing the risk of non-fulfillment of obligations undertaken by the counterparty with
regard to the liquidity investments of the Group;
■
Liquidity risk: connected with the need to meet short-term financial commitments.
These financial risks are managed by:
■
the establishment, at central level, of guidelines for directing operations;
■
the work of an internal committee that monitors the level of exposure to market risks in accordance with
pre-established general objectives;
■
the identification of the most suitable financial instruments, including derivatives, to reach pre-established
objectives;
■
the monitoring of the results achieved;
■
the exclusion of the use of financial instruments for speculative purposes.
The policies for the management and the sensitivity analyses of the above financial risks by the TIM Group are
described below.
Identification of risks and analysis
The TIM Group is exposed to market risks, as a result of changes in interest rates and exchange rates, in the
markets in which it operates or has bond issues, mainly in Europe, the United States and Latin America.
The financial risk management policies of the TIM Group are directed towards diversifying market risks, fully
hedging exchange rate risks from its foreign currency denominated liabilities and minimizing interest rate
exposure by an appropriate diversification of the portfolio, which is also achieved by using carefully selected
derivative financial instruments.
The Group defines an optimum composition of its debt structure by balancing fixed and variable-rates and
uses derivative financial instruments to achieve that debt composition. In consideration of the Group's
operating activities, the optimum combination of medium/long-term non-current financial liabilities has been
identified, on the basis of the nominal value, in the 65%-85% range for the fixed-rate component and in the
15%-35% range for the variable-rate component.
In managing market risk, the Group has adopted Guidelines on "Management and control of financial risk" and
mainly uses the following financial derivatives:
■
Interest Rate Swaps (IRS), to modify the profile of the original exposure to interest rate risks on loans and
bonds, both fixed and variable;
■
Cross Currency and Interest Rate Swaps (CCIRS) and Currency Forwards, to convert loans and bonds issued
in currencies other than euro (principally in US dollars) to the functional currencies of the operating
companies.
Derivative financial instruments are designated as fair value hedges for managing exchange rate and interest
rate risks on instruments denominated in currencies other than euro and for managing interest rate risk on
fixed-rate loans in euros. Derivative financial instruments are designated as cash flow hedges when the
objective is to pre-set the exchange rate of future transactions and the interest rate.
All derivative financial instruments are entered into with banking and financial counterparties with at least a
“BBB-” rating from Standard & Poor’s or an equivalent rating and a non-negative outlook. The exposure to the
various market risks can be measured by sensitivity analyses, as set forth in IFRS 7. This analysis illustrates the
effects produced by a given and assumed change in the levels of the relevant variables in the various reference
markets (exchange rates, interest rates and prices) on finance income and expenses and, at times, directly on
equity. The sensitivity analysis was performed based on the suppositions and assumptions indicated below:
■
sensitivity analyses were performed by applying reasonably likely changes in the relevant risk variables to
the amounts in the consolidated financial statements at December 31, 2024;
■
changes in value of fixed-rate financial instruments, other than derivatives, produced by changes in the
reference interest rates, generate an impact on profit only when, in accordance with IAS 39 and IFRS 9,
they are accounted for at their fair value through profit and loss. All fixed-rate instruments, which are
accounted for at amortized cost, are not subject to interest rate risk as defined by IFRS 7;
■
in the case of fair value hedge relationships, fair value changes of the underlying hedged item and of the
derivative instrument, due to changes in the reference interest rates, offset each other almost entirely in
the income statement for the year. As a result, these financial instruments are not exposed to the interest
rate risk;
TIM Group Consolidated
Financial Statements
Note 18
Financial risk management
339
■
changes in the value of designated financial instruments in a cash flow hedge relationship, produced by
changes in interest rates, generate an impact on the debt level and on equity; accordingly, they are
included in this analysis;
■
the changes in value, produced by changes in the reference interest rates, of variable-rate financial
instruments, other than derivatives, which are not part of a cash flow hedge relationship, generate an
impact on the finance income and expenses for the year; accordingly they are included in this analysis.
Exchange rate risk – Sensitivity analysis
At December 31, 2024 (and also at December 31, 2023), the exchange rate risk of the Group’s loans
denominated in currencies other than the functional currency of the single companies' financial statements
was hedged in full. Accordingly, a sensitivity analysis was not performed on the exchange rate risk.
Interest rate risk – Sensitivity analysis
The change in interest rates on the variable component of payables and liquidity may lead to higher or lower
finance income and expenses, while changes in the level of the expected interest rate affect the fair value
measurement of the Group's derivatives. Specifically:
■
with regard to derivatives that convert the liabilities contracted by the Group to fixed rates (cash flow
hedging), in line with international accounting standards that regulate hedge accounting, the fair value
(mark-to-market) measurement of such instruments is set aside in a specific unavailable Equity reserve.
The combined change of the numerous market variables to which the mark-to-market calculation is
subject between the transaction inception date and the measurement date renders any assumption about
the trend of the variables of little significance. As the contract expiration date approaches, the accounting
effects described will gradually be absorbed until they cease to exist;
■
if at December 31, 2024 the interest rates in the various markets in which the TIM Group operates had been
100 basis points higher/lower compared to the actual rates, then higher/(lower) finance expenses, before
the income tax effect, would have been recognized in the consolidated income statement for -7 million
euros (42 million euros at December 31, 2023).
Allocation of the financial structure between fixed rate and variable
rate
As for the allocation of the financial structure between the fixed-rate component and the variable-rate
component, for both financial assets and liabilities, reference should be made to the following tables. These
tables have been prepared by taking into account the nominal repayment/investment amount (since that
amount expresses the effective interest rate exposure of the Group) and, as far as financial assets are
concerned, the intrinsic nature (financial characteristics and duration) of the transactions under consideration
rather than the stated contractual terms alone. Bearing that in mind, a transaction whose characteristics
(short or very short time frame and frequent renewal) are such that the interest rate is periodically reset on the
basis of market parameters, even though the contract does not call for re-fixing the interest rate (as in the
case of bank deposits), has been considered in the variable rate category.
Total Financial liabilities (at the nominal repayment amount)
12/31/2024
12/31/2023
(million euros)
Rate
Rate
Total
Rate
Rate
Total
fixed
variable
fixed
variable
Bonds
8,691
934
9,625
16,812
1,234
18,046
Loans and other financial liabilities
2,827
1,565
4,392
5,463
6,057
11,520
Total non-current financial liabilities
(including the current portion of medium/
long-term financial liabilities)
11,518
2,499
14,017
22,275
7,291
29,566
Total current financial liabilities
449
76
525
1,123
254
1,377
Total
11,967
2,575
14,542
23,398
7,545
30,943
Total Financial assets (at the nominal investment amount)
12/31/2024
12/31/2023
(million euros)
Rate
Rate
Total
Rate
Rate
Total
fixed
variable
fixed
variable
Cash and cash equivalents
—
2,427
2,427
—
2,294
2,294
Securities
1,171
884
2,055
1,515
1,044
2,559
Other receivables
443
4
447
1,365
9
1,374
Total
1,614
3,315
4,929
2,880
3,347
6,227
With regard to variable-rate financial instruments, the contracts provide for revisions of the related parameters
to take place within the subsequent 12 months.
TIM Group Consolidated
Financial Statements
Note 18
Financial risk management
340
Effective interest rate
As to the effective interest rate, for the categories where that parameter can be determined, such parameter
refers to the original transaction net of the effect of any derivative hedging instruments.
The disclosure, which is provided by class of financial asset and liability, has been determined, for purposes of
calculating the weighted average, using the carrying amount adjusted by accruals, prepayments, deferrals and
fair value adjustments: this is therefore the amortized cost, net of accruals and any changes in fair value, as a
consequence of hedge accounting.
Total Financial Liabilities
12/31/2024
12/31/2023
(million euros)
Adjusted carrying
amount
Effective interest
rate (%)
Adjusted carrying
amount
Effective interest
rate (%)
Bonds
9,650
5.86
18,019
5.68
Loans and other financial liabilities
5,310
7.15
13,467
5.62
Total
14,960
6.32
31,486
5.65
Total Financial assets
12/31/2024
12/31/2023
(million euros)
Adjusted carrying
amount
Effective interest
rate (%)
Adjusted carrying
amount
Effective interest
rate (%)
Cash and cash equivalents
2,427
2.41
2,294
2.83
Securities
2,055
1.03
2,559
5.16
Other receivables
99
6.79
828
0.84
Total
4,581
1.89
5,681
3.59
As for financial assets, the weighted average effective interest rate is not essentially influenced by the
existence of derivatives.
As for market risk management using derivatives, reference should be made to Note 19 "Derivatives".
Credit risk
Exposure to credit risk for the TIM Group consists of possible losses that could arise from the failure of either
commercial or financial counterparties to fulfill their assumed obligations. To measure this risk over time for
impairment of financial assets (trade receivables due from customers included), the introduction of IFRS 9
required switching from the incurred loss model pursuant to IAS 39 to the expected credit loss model.
Such exposure mainly stems from general economic and financial factors, the potential occurrence of specific
insolvency situations of some borrowers and other more strictly technical-commercial or administrative
factors.
TIM Group’s maximum theoretical exposure to credit risk is represented by the carrying amount of the financial
assets and trade receivables recorded in the financial statements, excluding guarantees received, described in
Note 25 "Disputes and pending legal actions, other information, commitments and guarantees".
Risk related to trade receivables is managed using customer scoring and analysis systems. For specific
categories of trade receivables, the Group also makes use of factoring, mainly on a "non-recourse" basis.
Provision charges for bad debts are recorded for specific credit positions that have an element of individual risk.
On credit positions that do not have such characteristics, provisions are raised by customer segment according
to the average uncollectibility estimated on the basis of statistical indicators. Further details are provided in the
Note 13 "Trade and miscellaneous receivables and other current assets".
Financial assets other than trade receivables are written down for impairment on the basis of a general model
which recognizes expected credit losses over the following 12 months, or over the residual life of the asset in
the event of a substantial worsening of its credit risk. The expected credit loss is calculated based on the
default probability and the percentage of credit that cannot be recovered in the event of a default (the loss
given default).
The model adopted to calculate the expected credit loss is based on the Bloomberg Credit Risk Model, a model
developed by Bloomberg which, starting from Merton's distance-to-default (“DD”) concept, estimates the
probability of default together with the recovery rate. At the same time, the loss given default is defined as the
non-recoverable component of the post-default financial asset.
In particular, the DD - based on balance sheet data - is enriched with a series of additional information by
country (macroeconomic, risk), business sector and individual company, as well as accounting adjustments
aimed at ensuring uniformity of the model's outputs; finally, through a non-linear function of the DD, the
default probability is obtained.
In order to improve credit risk management and relieve pressure on working capital, with specific reference to
the offers for the Consumer and Small Business market involving the option of paying for products by
installments, starting 2021, the company TIMFin has been operating, the result of the corporate joint venture
between Santander Consumer Bank (SCB) and TIM.
TIM Group Consolidated
Financial Statements
Note 18
Financial risk management
341
Moreover, as regards credit risk relating to the asset components which contribute to the determination of
"Net financial debt", it should be noted that the management of the Group's liquidity is guided by conservative
criteria and is principally based on the following:
■
Money market management: the investment of temporary excess cash resources;
■
Bond portfolio management: the investment of medium-term liquidity, as well as the improvement of the
average yield of the assets.
In order to mitigate the risk of the non-fulfillment of the obligations undertaken by the counterparty, deposits
of the European companies are made with leading banking and financial institutions rated no lower than
investment grade and with a non-negative outlook, and investments by the companies in South America are
made with leading local counterparties. Moreover, deposits are made generally for periods of less than three
months. With regard to other temporary investments of liquidity, there is a bond portfolio in which the
investments have a low risk level. All investments have been carried out in compliance with the Group
Guidelines on "Management and control of financial risk".
In order to minimize credit risk, the Group also pursues a diversification policy for its investments of liquidity
and allocation of its credit positions among different banking counterparties. Consequently, there are no
significant positions with any one single counterparty.
Liquidity risk
The Group pursues the objective of achieving an "adequate level of financial flexibility", which is expressed by
maintaining a current treasury margin to cover the refinancing requirements at least for the next 12 months
with irrevocable bank lines and liquidity.
At December 31, 2024, the liquidity margin available for the TIM Group is 8,364 million euros, with a decrease of
331 million euros with respect to end 2023 (8,695 million euros).
28% of gross financial debt at December 31, 2024 (nominal repayment amount) will become due in the next 12
months.
Current financial assets at December 31, 2024, together with unused committed bank lines, are sufficient to
fully cover the Group’s financial liabilities due for the next 36 months.
The following tables report the contractual cash flows, not discounted to present value, relating to gross
financial debt at nominal repayment amounts and the interest flows, determined using the terms and the
interest and exchange rates in place at December 31, 2024. The portions of principal and interest of the hedged
liabilities includes both the disbursements and the receipts of the related hedging instruments. Specifically, the
interest portions of "Loans and other financial liabilities" also include those relating to derivatives hedging for
both loans and bonds.
Financial liabilities – Maturities of contractually expected disbursements
maturing by 12/31 of the year:
(million euros)
2025
2026
2027
2028
2029
Over
2029%
Total
Bonds
Principal
2,183 1,319 1,008 1,595
499
3,021
9,625
Interest portion
518
431
366
300
213
1,630
3,458
Loans and other financial liabilities (*)
Principal
900
144
430
38
246
(242)
1,516
Interest portion
150
91
26
11
3
(224)
57
Finance lease liabilities
Principal
455
334
331
315
296
1,145
2,876
Interest portion
256
223
195
170
141
459
1,444
Non-current financial liabilities
Principal
3,538 1,797 1,769 1,948 1,041
3,924
14,017
Interest portion
924
745
587
481
357
1,865
4,959
Current financial liabilities
Principal
525
—
—
—
—
—
525
Interest portion
6
—
—
—
—
—
6
Total
Principal
4,063 1,797 1,769 1,948 1,041
3,924
14,542
Interest portion
930
745
587
481
357
1,865
4,965
(*) These include hedging and non-hedging derivatives.
TIM Group Consolidated
Financial Statements
Note 18
Financial risk management
342
Derivatives on financial liabilities – Contractually expected interest flows
maturing by 12/31 of the year:
(million euros)
2025
2026
2027
2028
2029
Over
2029%
Total
Disbursements
156
154
154
155
154
569 1,342
Receipts
(188)
(186)
(186)
(186)
(186)
(844) (1,776)
Hedging derivatives – net (receipts) disbursements
(32)
(32)
(32)
(31)
(32)
(275)
(434)
Disbursements
104
175
157
116
12
19
583
Receipts
(59)
(152)
(147)
(119)
(10)
(17)
(504)
Non-Hedging derivatives – net (receipts) disbursements
45
23
10
(3)
2
2
79
Total net disbursements (receipts)
13
(9)
(22)
(34)
(30)
(273)
(355)
Market value of derivative instruments
In order to determine the fair value of derivatives, the TIM Group uses various valuation models.
The mark-to-market calculation is determined by the present value discounting of the interest and notional
future contractual flows using market interest rates and exchange rates.
The notional amount of IRS does not represent the amount exchanged between the parties and, therefore, is
not a measurement of credit risk exposure, which, instead, is limited to the amount of the difference between
the interest rates paid/received.
The market value of CCIRSs, on the other hand, also depends on the differential between the reference
exchange rate at the date of signing the contract and the exchange rate at the date of measurement, since
CCIRSs involve the exchange of the reference interest and principal, in the respective denomination currencies.
The options are measured according to the Black & Scholes or Binomial models and involve the use of various
measurements factors, such as: the lifetime horizon of the option, the risk-free rate of return, current price,
volatility and any cash flows (e.g. dividend) of the underlying financial instrument, and the exercise price.
NOTE 19
DERIVATIVES
For hedge accounting we continued to apply the rules established by IAS 39.
Derivative financial instruments are used by the TIM Group to hedge its exposure to foreign exchange rate risk,
to manage interest rate risk and to diversify the parameters of debt so that costs and volatility can be reduced
to within predetermined operational limits.
Derivative financial instruments existing at December 31, 2024 are principally used to manage debt positions.
They include interest rate swaps (IRSs) used to reduce the interest rate exposure of fixed-rate bank loans and
bonds, as well as cross currency and interest rate swaps (CCIRSs), currency forwards and foreign exchange
options to convert the loans/receivables secured in currencies different from the functional currencies of the
various Group companies.
IRS transactions, provide for or may entail, at specified maturity dates, the exchange of flows of interest,
calculated on the notional amount, at the agreed fixed or variable rates.
The same also applies to CCIRS transactions which, in addition to the settlement of periodic interest flows, may
provide for the exchange of principal, in the respective currencies of denomination, at maturity and possibly
spot.
Hedges: economic relationship between underlying instrument
and derivatives
Hedging relationships recorded in hedge accounting at December 31, 2024 belong to a single item: hedging of
cash flows from income flows of bond issues.
The hedged risk is represented by the variability in cash flows (and the repayment of the nominal amount)
generated by exchange rates; hedging comprises combinations of IRS and CCIRS that synthetically transform
fixed rate foreign currency income flows into fixed rate euro flows. In this case, exchange rate fluctuations will
usually produce contrary effects on the underlying asset and on the derivative, as the asset leg of the latter
faithfully reflects the underlying asset, while the liability leg is denominated in euro and is therefore insensitive
to the exchange rate.
Hedges: determination of the hedge ratio
The types of hedging implemented by the Group require the adoption of a hedge ratio equal to 1:1, as the
types of risk hedged (interest rate and exchange rate risks) are such as to generate economic effects in the
underlying instruments that can only be offset by the same notional quantities of derivative instruments.
TIM Group Consolidated
Financial Statements
Note 18
Financial risk management
343
Hedges: potential sources of ineffectiveness
The contractualization of derivatives to hedge financial risks takes place at arm's length and aims to
completely neutralize the effects produced by such instruments.
However, in practice, hedges (although financially perfect) may not guarantee an absolute accounting
effectiveness due to the many counterparty banks involved, to the peculiar nature of certain derivatives in
terms, for example, of fixing and/or indexing of variable parameters, and to the possible imperfect coincidence
between critical terms.
The first table indicates total financial derivatives of the TIM Group at December 31, 2024 and 2023; in
compliance with standard IFRS 7, notional amounts are shown with reference to all the derivative instruments
involved in the hedges.
The following tables break down financial derivatives by type of risk for each kind of hedging, separating
financial assets and liabilities. For CCIRS, the notional amount refers to the contractual value in euros, for IRS in
a currency other than the euro, the value is indicated at the market exchange rate.
Type
(million euros)
Hedged risk
Notional
amount at
12/31/2024
Notional
amount at
12/31/2023
Mark to Market
Spot* (Clean
Price) at
12/31/2024
Mark to Market
Spot* (Clean
Price) at
12/31/2023
Interest rate swaps
Interest rate risk
—
—
—
—
Cross Currency and
Interest Rate Swaps
(CCIRS)
Interest rate risk and
currency exchange rate
risk
—
—
—
—
Total Fair Value Hedge Derivatives
—
—
—
—
Interest rate swaps
Interest rate risk
2,403
4,474
(30)
130
Cross Currency and
Interest Rate Swaps
(CCIRS)
Interest rate risk and
currency exchange rate
risk
1,968
4,841
352
417
Total Cash Flow Hedge Derivatives
4,371
9,315
322
547
Total Non-Hedge Accounting Derivatives
1,025
1,205
32
44
Total TIM Group's Derivatives
5,396
10,520
354
591
* Spot Mark-to-market above represents the market measurement of the derivative net of the accrued portion of the flow in progress.
The non-hedging category of derivatives includes the value of the right held by TIM Brasil to subscribe shares of
the Brazilian C6 Bank - of 81 million euros - on the basis of a commercial agreement signed by the two
companies in March 2020.
Fair value hedges
(million euros)
Accounting item
Notional
value
Carrying
amount
Change in
fair value
for the
year
Interest rate swaps
Hedging derivatives relating to
hedged items classified as current
financial
assets/liabilities
-
Current/non-current assets.
a)
—
Assets
—
Liabilities
—
Cross Currency and Interest Rate
Swaps (CCIRS)
Hedging derivatives relating to
hedged items classified as current
financial
assets/liabilities
-
Current/non-current assets.
b)
—
—
—
Assets
—
Liabilities
—
Derivative instruments (spot value)
a)+b)
—
Accruals
Derivative instruments (gross value)
Underlying instruments (1)
Bonds
-
Current/non-current
liabilities
of which fair value adjustment
Fair
value
adjustment
and
measurements at amortized cost
c)
—
Ineffectiveness
a)+b)+c)
Fair value adjustment for hedging
settled in advance (2)
(23)
(1) Includes the amortized cost value of bonds currently hedged plus the fair value adjustment.
TIM Group Consolidated
Financial Statements
Note 19
Derivatives
344
(2) Referred to bonds no longer hedged, which are therefore not presented in the table.
Cash flow hedges
(million euros)
Accounting item
Notional
value
Carrying
amount
Change in
fair value
for the year
Change in
cumulative
fair value
Interest rate swaps
Hedging
derivatives
relating to hedged items
classified
as
current
financial assets/liabilities -
Current/non-current
assets.
a)
2,403
(30)
(160)
Assets
113
(276)
Liabilities
(143)
116
Cross Currency and Interest Rate
Swaps (CCIRS)
Hedging
derivatives
relating to hedged items
classified
as
current
financial assets/liabilities -
Current/non-current
assets.
b)
1,968
352
(65)
Assets
413
(186)
Liabilities
(62)
121
Derivative instruments (spot value)
a)+b)
4,371
322
(225)
Accruals
71
Derivative instruments (gross
value)
393
of which equity reserve gains and
losses
43
Determination of ineffectiveness
Change in derivatives
c)
325
Change in underlying instruments (3)
d)
(307)
Ineffectiveness (4)
Positive
fair
value
adjustment of financial
derivatives - non-hedging
c)+d)
15
Equity reserve
Equity reserve balance
(99)
of which due to the fair value of
hedging settled in advance
—
Reclassification to P&L
Negative reversal of the
reserve for the fair value
adjustment of hedging
derivatives (cash flow
hedges)
(39)
(3) Hypothetical derivatives used in measuring the effectiveness of cash flow hedges.
(4) The ineffectiveness, due to its nature and calculation, does not necessarily coincide with the difference in cumulative changes in the fair value
of derivatives and the underlying instrument; the effect due to the adoption of CVA/DVA is not considered.
The change in the equity reserve attributable to the effective hedging component is equal to 4 million euros.
TIM Group Consolidated
Financial Statements
Note 19
Derivatives
345
Changes in the equity cash flow
hedge reserve
Balance
12/31/2023
Change
Balance
12/31/2024
(million euros)
Hedging
instrument
gains / losses
Reversal from
reclassification
Reversal from
fair value
adjustment of
hedging settled
in advance
Total change
(103)
(99)
Change in the effective fair value
of derivatives
43
Change in the CVA/DVA
(2)
Reversal for ineffectiveness 2019
(39)
Amortization in P&L of the fair
value of hedging settled in
advance
2
Overall change
4
None of the parameters represented includes any income tax effect.
The transactions hedged by cash flow hedges will generate cash flows and produce economic effects in the
income statement in the periods indicated in the following table:
Denomination
currency
Notional amount
in denomination
currency
(millions)
Start of
period
End of
period
Rate applied
Interest
period
Hedging of
notional
amount in
euro
(millions)
Hedging of
rate in euro
JPY*
20,000
Jan-25
Oct-29
5.000%
Semiannually
174
6.940%
JPY**
20,000
Jan-25
Oct-29
0.750%
Semiannually
138
0.696%
USD
500
Jan-25
Nov-33
6.375%
Semiannually
849
5.855%
USD
1,500
Jan-25
May-24
5.303%
Semiannually
1,321
4.180%
USD
500
Jan-25
Sep-34
6.000%
Semiannually
794
4.340%
USD
500
Jan-25
Jul-36
7.200%
Semiannually
791
5.883%
USD
500
Jan-25
Jun-38
7.721%
Semiannually
645
7.461%
* Income cash flows are denominated in USD and calculated on a notional amount of USD 185.6 million.
** Hedging of the sole income cash flow following a step-up on the loan.
For hedge accounting purposes, the Volatility Risk Reduction (VRR) Test was chosen to test the retrospective
and prospective effectiveness of all hedges.This test assesses the ratio between the portfolio risk (meaning the
derivative and the item hedged) and the risk of the hedged item taken individually. In essence, the portfolio risk
must be significantly lower than the risk of the hedged item.
TIM Group Consolidated
Financial Statements
Note 19
Derivatives
346
NOTE 20
SUPPLEMENTARY DISCLOSURES ON FINANCIAL
INSTRUMENTS
Measurement at fair value
For the purposes of the comparative information between the carrying amounts and fair value of financial
instruments, required by IFRS 7, the majority of the non-current financial liabilities of the TIM Group consist of
bonds, whose fair value is directly observable in the financial markets, as they are financial instruments that
due to their size and diffusion among investors, are commonly traded on the relevant markets (see the Note
"Non-current and current financial liabilities"). For other types of financing, however, the following
assumptions have been made in determining fair value:
■
for variable-rate loans, the nominal repayment amount has been assumed; for fixed-rate loans;
■
for fixed-rate loans, the present value of future cash flows at the market interest rates of December 31,
2024 has been assumed;
■
the carrying amount has been used for some types of loans granted by government institutions for social
development purposes, for which fair value cannot be reliably calculated.
Lastly, for the majority of financial assets, their carrying amount is a reasonable approximation of their fair
value, since these are short-term investments that are readily convertible into cash.
The fair value measurement of the financial instruments of the Group has been classified in the three levels set
out in IFRS 7.In particular, the fair value hierarchy introduces the following levels of input:
■
Level 1: quoted prices in active markets;
■
Level 2: prices calculated using observable market inputs;
■
Level 3: prices calculated using inputs that are not based on observable market data.
The following tables contain, for assets and liabilities at December 31, 2024 and December 31, 2023 and in
accordance with the categories established by IFRS 9, the supplementary disclosures on financial instruments
required by IFRS 7 and the schedules of gains and losses. They do not include Discontinued operations/Non-
current assets held for sale and Liabilities directly associated with Discontinued operations/Non-current assets
held for sale.
Key for IFRS 9 categories
Acronym
Financial assets measured at:
Amortized cost
Amortized Cost
AC
Fair Value Through Other Comprehensive Income
Fair Value Through Other Comprehensive Income
FVTOCI
Fair Value Through Profit or Loss
Fair Value Through Profit or Loss
FVTPL
Financial liabilities measured at:
Amortized cost
Amortized Cost
AC
Fair Value Through Profit or Loss
Fair Value Through Profit or Loss
FVTPL
Hedge Derivatives
Hedge Derivatives
HD
Not applicable
Not applicable
N/A
TIM Group Consolidated
Financial Statements
Note 20
Supplementary disclosures about financial instruments
347
Carrying amount and fair value hierarchy for each category/class of financial asset/liability and comparison with
their fair value at 12/31/2024
Amounts recognized in financial
statements
Levels of hierarchy of fair
value
(million euros)
IFRS 9
categories
notes
Carrying
amount at
December
31, 2024
Amortized
cost
Fair value
through
other
comprehens
ive income
Fair value
through
profit or
loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value
at
12/31/2024
ASSETS
Financial assets measured at
amortized cost
AC
5,493
5,493
5,493
Non-current assets
Receivables from employees
(9)
11
11
Miscellaneous non-current
receivables
(10)
147
147
Current assets
Receivables from employees
(9)
3
3
Other short-term financial
receivables
(9)
2
2
Cash and cash equivalents
(9)
2,924
2,924
Trade receivables
13)
2,309
2,309
Other current receivables
13)
69
69
Contract assets
13)
28
28
Financial assets measured at fair
value through other comprehensive
income
FVTOCI
1,208
1,208
1,208
Non-current assets
Other investments
(8)
92
92
19
32
41
Current assets
Securities other than investments
(9)
1,116
1,116
1,116
Financial assets measured at fair
value through profit or loss
FVTPL
637
637
637
Non-current assets
Other investments
(8)
58
58
33
25
Non-hedging derivatives
(9)
81
81
81
Current assets
Securities other than investments
(9)
423
423
423
Non-hedging derivatives
(9)
75
75
75
Hedge Derivatives
HD
586
586
586
Non-current assets
Hedge Derivatives
(9)
554
554
554
Current assets
Hedge Derivatives
(9)
32
32
32
Financial receivables for lease
contracts
n.a.
84
84
84
Non-current assets
(9)
40
40
Current assets
(9)
44
44
Total
8,008
5,493
1,794
637 1,591
799
41
84
8,008
The financial instruments belonging to hierarchy level 3 of fair value are represented by the following Other
investments recognized as Non-current assets, for which directly or indirectly observable prices on the market
are not available:
■
Northgate CommsTech Innovations Partners L.P.;
■
UV T-Growth;
■
Other minor companies.
Northgate CommsTech Innovations Partners L.P. and UV-T Growth was measured based on the latest
available Net Asset Values reported by the fund managers.
The other minor companies were measured on the basis of an analysis, deemed reliable, of their main assets
and liabilities.
The profit/(loss) recognized in Other components of the Consolidated Statements of Comprehensive Income
were recognized within the scope of the Reserve for financial assets measured at fair value through other
comprehensive income.
TIM Group Consolidated
Financial Statements
Note 20
Supplementary disclosures about financial instruments
348
Amounts recognized in financial
statements
Levels of hierarchy of fair
value
(million euros)
IFRS 9
categories
notes
Carrying
amount at
December
31, 2024
Amortized
cost
Fair value
through
other
comprehens
ive income
Fair value
through
profit or
loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value
at
12/31/2024
LIABILITIES
Financial liabilities measured at
amortized cost
AC/HD
16,924
16,924
17,137
Non-current liabilities
Medium- and long-term financial
payables and other liabilities
16)
8,532
8,532
Current liabilities
Short-term financial payables and
other liabilities
16)
3,803
3,803
Trade and miscellaneous payables
and other current liabilities
24)
4,488
4,488
Contract liabilities
24)
101
101
Financial liabilities measured at fair
value through profit or loss
FVTPL
70
70
70
Non-current liabilities
Non-hedging derivatives
16)
26
26
26
Current liabilities
Non-hedging derivatives
16)
44
44
44
Hedge Derivatives
HD
193
193
193
Non-current liabilities
Hedge Derivatives
16)
170
170
170
Current liabilities
Hedge Derivatives
16)
23
23
23
Finance lease liabilities
n.a.
2,944
2,944
2,736
Non-current liabilities
16)
2,421
2,421
Current liabilities
16)
523
523
Total
20,131
16,924
193
70
263
2,944
20,136
TIM Group Consolidated
Financial Statements
Note 20
Supplementary disclosures about financial instruments
349
Carrying amount and fair value hierarchy for each category/class of financial asset/liability and comparison with
their fair value at 12/31/2023
Amounts recognized in financial
statements
Levels of hierarchy
of fair value
(million euros)
IFRS 9
categories
notes
Carrying
amount in
financial
statements
at
12/31/2023
Amortized
cost
Fair value
through
other
comprehens
ive income
Fair value
through
profit or
loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value at
12/31/2023
ASSETS
Financial assets measured at
amortized cost
AC
6,656
6,656
6,656
Non-current assets
Receivables from employees
(9)
31
31
Other financial receivables
(9)
9
9
Miscellaneous non-current
receivables
(10)
154
154
Current assets
Receivables from employees
(9)
24
24
Other short-term financial
receivables
(9)
491
491
Cash and cash equivalents
(9)
2,912
2,912
Trade receivables
13)
2,907
2,907
Other current receivables
13)
60
60
Contract assets
13)
68
68
Financial assets measured at fair
value through other
comprehensive income
FVTOCI
1,616
1,616
1,616
Non-current assets
Other investments
(8)
100
100
36
23
41
Current assets
Securities other than investments
(9)
1,516
1,516
1,516
Financial assets measured at fair
value through profit or loss
FVTPL
558
558
558
Non-current assets
Other investments
(8)
40
40
10
30
Non-hedging derivatives
(9)
95
95
95
Current assets
Securities other than investments
(9)
366
366
366
Non-hedging derivatives
(9)
57
57
57
Hedge Derivatives
HD
1,085
1,085
1,085
Non-current assets
Hedge Derivatives
(9)
968
968
968
Current assets
Hedge Derivatives
(9)
117
117
117
Financial receivables for lease
contracts
n.a.
274
274
274
Non-current assets
(9)
112
112
Current assets
(9)
162
162
Total
10,189
6,656
2,701
558
1,928 1,290
41
274
10,189
TIM Group Consolidated
Financial Statements
Note 20
Supplementary disclosures about financial instruments
350
Amounts recognized in financial
statements
Levels of hierarchy
of fair value
(million euros)
IFRS 9
categories
notes
Carrying
amount in
financial
statements
at
12/31/2023
Amortized
cost
Fair value
through
other
comprehens
ive income
Fair value
through
profit or
loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value at
12/31/2023
LIABILITIES
Financial liabilities measured at
amortized cost
AC/HD
32,173
32,173
32,192
Non-current liabilities
Financial payables (medium/long-
term)
16)
20,872
20,872
Current liabilities
Financial payables (short-term)
16)
5,654
5,654
Trade and miscellaneous payables
and other current liabilities
24)
5,542
5,542
Contract liabilities
24)
105
105
Financial liabilities measured at
fair value through profit or loss
FVTPL
66
66
66
Non-current liabilities
Non-hedging derivatives
16)
15
15
15
Current liabilities
Non-hedging derivatives
16)
51
51
51
Hedge Derivatives
HD
463
463
463
Non-current liabilities
Hedge Derivatives
16)
397
397
397
Current liabilities
Hedge Derivatives
16)
66
66
66
Finance lease liabilities
n.a.
5,581
5,581
5,693
Non-current liabilities
16)
4,743
4,743
Current liabilities
16)
838
838
Total
38,283
32,173
463
66
514
15
5,581
38,414
Gains and losses by IAS 9 category - Year 2024
(million euros)
IFRS 9
categories
Net gains/
(losses) 2024
of which
interest
Assets measured at amortized cost
AC
(135)
122
Assets and liabilities measured at fair value through profit or loss
FVTPL
(4)
Assets measured at fair value through other comprehensive income
FVTOCI
40
Liabilities measured at amortized cost
AC
(1,105)
1,055
Total
(1,204)
1,177
Gains and losses by IAS 9 category - Year 2023
(million euros)
IFRS 9
categories
Net gains/
(losses) 2023
of which
interest
Assets measured at amortized cost
AC
(190)
117
Assets and liabilities measured at fair value through profit or loss
FVTPL
(55)
Assets measured at fair value through other comprehensive income
FVTOCI
—
Liabilities measured at amortized cost
AC
(1,366)
1,242
Total
(1,542)
1,359
TIM Group Consolidated
Financial Statements
Note 20
Supplementary disclosures about financial instruments
351
NOTE 21
EMPLOYEE BENEFITS
These decreased by 312 million euros compared to December 31, 2023. The breakdown is as follows:
(million euros)
12/31/2022
Increases/
Present value
Decrease
Exchange
differences and
other changes
12/31/2023
Provision for employee severance
i d
i i
(a)
553
25
(81)
(1)
496
Provisions for pension plans
16
1
(2)
—
15
Provision for termination benefit incentives
and corporate restructuring
223
14
(213)
(20)
4
Total other employee benefits
(b)
239
15
(215)
(20)
19
Total
(a+b)
792
40
(296)
(21)
515
of which:
Non-current portion
684
511
Current portion (*)
108
4
(*) The current portion refers only to Other provisions for employee benefits.
(million euros)
12/31/2023
Discontinued
Operations
Increases/
Present value
Decrease
Exchange
differences
and other
h
12/31/2024
Provision for employee severance
i d
i i
(a)
496
(305)
4
(9)
—
186
Provision for pension and other plans
15
1
(2)
—
14
Provision for termination benefit incentives
and corporate restructuring
4
—
(1)
—
3
Total other employee benefits
(b)
19
1
(3)
—
17
Total
(a+b)
515
(305)
5
(12)
—
203
of which:
Non-current portion
511
200
Current portion (*)
4
3
(*) The current portion refers only to Other provisions for employee benefits.
The Provision for employee severance indemnities refers to only Italian companies and in 2024 was down 310
million euros, mainly due to the NetCo transaction and indemnities paid during the year to employees whose
employment was terminated or for advances.
The changes recorded in “Increases/Present value” are as follows:
(million euros)
2024
2023
(Positive)/negative effect of curtailment
—
—
Current service cost (*)
—
—
Finance expenses
6
17
Net actuarial (gains) losses for the year
(2)
8
Total
4
25
Effective return on plan assets
there are no assets servicing the plan
(*) The portions intended for the INPS Treasury Fund or for the supplementary pension funds have been recorded under “Employee benefits
expenses” under “Social security expenses”. The latter account is used only for the severance indemnity expenses of companies with less than 50
employees.
The net actuarial losses recognized at December 31, 2024 amounted to 2 million euros (net actuarial gains of 8
million euros in 2023), and are essentially connected with both staff turnover and changes to the technical-
economic parameters used in the valuation: the inflation rate remained unchanged from December 31, 2023,
at 2.00%; the discount rate increased, going from the 3.08% used at December 31, 2023 to 3.18% at December
31, 2024.
According to Italian law, the severance indemnity to which each employee is entitled depends on the period of
service and must be paid when the employee leaves the company. The severance indemnity due upon
termination of employment is calculated on the basis of the period of employment and the taxable
compensation of each employee. This liability is adjusted annually based on the official cost-of-living index and
legally-set interest. The liability is not associated with any vesting condition or period or any funding obligation;
accordingly, there are no assets servicing the provision. The liability is recognized net of the partial
prepayments of the provision and payments of the amounts obtained by employees for the reasons permitted
by the applicable regulations.
Under the regulations introduced by Italian Legislative Decree 252/2005 and Law no. 296/2006 with which, for
companies with at least 50 employees, the severance indemnities accruing from 2007 are assigned, as elected
TIM Group Consolidated
Financial Statements
Note 21
Employee benefits
352
by the employees, to either the INPS Treasury Fund or to supplementary pension funds and take the form of a
"defined contribution plan".
However, for all companies, the revaluations of the amounts in the provision for employee severance
indemnities existing at the election date, and also the amounts accrued and not assigned to supplementary
pension plans for companies with less than 50 employees, are retained in the provision for employee
severance indemnities. In accordance with IAS 19, the provision has been recognized as a “defined benefit
plan”.
In application of IAS 19, employee severance indemnities have been calculated using the “Projected Unit Credit
Method” as follows:
■
the future possible benefits which could be paid to each employee registered in the program in the event
of retirement, death, disability, resignation, etc. have been projected on the basis of a series of financial
assumptions (cost-of-living increases, interest rate, increase in compensation, etc.). The estimate of future
benefits includes any increases for additional service seniority, as well as the estimated increase in the
compensation level at the measurement date – only for employees of companies with less than 50
employees during the year 2006;
■
the average present value of future benefits has been calculated, at the measurement date, on the basis
of the annual interest rate adopted and of the probability that each benefit actually has to be paid;
■
the liability of each company concerned has been calculated as the average present value of future
benefits that will be generated by the existing provision at the measurement date, without considering any
future accruals (for companies with at least 50 employees during the year 2006) or by identifying the
amount of the average present value of future benefits which refer to the past service already accrued by
the employee in the company at the measurement date (for the others), i.e. adopting the “service pro-
rate”.
The following assumptions have been made:
FINANCIAL ASSUMPTIONS
Executives
Non-executives
Inflation rate
2.00% per annum
2.00% per annum
Discount rate
3.18% per annum
3.18% per annum
Employee severance indemnities annual increase rate
3.0% per annum
3.0% per annum
Annual real wage growth:
equal to or less than 40 years of age
1.0% per annum
1.0% per annum
over 40 but equal to or less than 55 years of age
0.5% per annum
0.5% per annum
over 55 years of age
0.0% per annum
0.0% per annum
DEMOGRAPHIC ASSUMPTIONS
Executives
Non-executives
Probability of death
ISTAT 2022
ISTAT 2022
Probability of disability
INPS tables divided by age and
sex
INPS tables divided by age and
sex
Probability of resignation:
up to 40 years of age
2.00%
1.00%
from 41 to 50 years of age
2.00%
0.50%
from 51 to 59 years of age
1.00%
0.50%
from 60 to 64 years of age
None
0.50%
aged 65 and over
None
None
Probability of retirement
100% on achievement of the AGO requirements aligned with D.L.
4/2019
Probability of receiving at the beginning of the year an
advance from the provision for severance indemnities
accrued equal to 70%
1.5%
per annum
1.5%
per annum
The application of the above assumptions resulted in a liability for employee severance indemnities of 186
million euros at December 31, 2024 (496 million euros at December 31, 2023).
Reported below is a sensitivity analysis for each significant actuarial assumption adopted to calculate the
liability as at year end; showing how the liability would have been affected by changes in the relevant actuarial
assumption that were reasonably possible at that date, stated in amounts.
The weighted average duration of the obligation of the Parent amounted to 8.9 years.
TIM Group Consolidated
Financial Statements
Note 21
Employee benefits
353
CHANGES IN ASSUMPTIONS
Amounts
(million euros)
Turnover rate:
+0.50 p.p.
—
-0.50 p.p.
—
Annual inflation rate:
+0.50 p.p.
6
-0.50 p.p.
(6)
Annual discount rate:
+0.50 p.p.
(8)
-0.50 p.p.
8
The Provision for pension and other plans amounted to 14 million euros at December 31, 2024 (15 million
euros at December 31, 2023) and mainly represented pension plans in place at foreign companies of the Group.
Provisions for termination benefit incentives and corporate restructuring amounted to 3 million euros at
December 31, 2024, decreasing in 2024 by 1 million euros, mainly due to staff departures and the
reclassification to debt of amounts not yet paid in relation to plans already set aside in previous years by Italian
companies in the Domestic Business Unit.
NOTE 22
PROVISIONS
These decreased by 308 million euros compared to December 31, 2023. The breakdown is as follows:
(million euros)
12/31/2023
Discontinued
operations
Increase
Taken to
income
Used
directly
Exchange
differences
and other
changes
12/31/2024
Provision for taxation and tax risks
129
16
(14)
(11)
120
Provision for restoration costs
310
(222)
8
(2)
(14)
80
Provision for legal disputes
472
96
(1)
(74)
(19)
474
Provision for commercial risks
251
25
(124)
2
154
Provision for risks and charges on
investments and corporate-related
transactions
11
28
39
Other provisions
12
(1)
(1)
10
Total
1,185
(223)
173
(1)
(215)
(42)
877
of which:
Non-current portion
679
485
current portion
506
392
The non-current portion of provisions for risks and charges mainly relates to some of the provision for
commercial risks, the provision for legal disputes and the provision for restoration costs. More specifically, in
accordance with accounting policies, the total amount of the provision for restoration costs is calculated by re-
measuring the amounts for which a probable outlay is envisaged, based on the estimated inflation rates for
the individual due dates, and subsequently discounted to the reporting date based on the average cost of debt,
taking into account expected cash outflows.
The provision for restoration costs refers to the provision for the costs expected to be incurred for the
restoration of leased properties and sites used in the mobile sector; as of December 31, 2024, this is mainly
attributable to the Parent Company TIM S.p.A. (71 million euros) and to the Brazil Business Unit (9 million
euros). The reduction from December 31, 2023 is mainly attributable to the NetCo transaction.
The provision for legal disputes included the provision for litigation with other counterparties and employees.
The amount at December 31, 2024 included 349 million euros for the Domestic Business Unit and 125 million
euros for the Brazil Business Unit.
The provision for commercial risks relates to the Domestic Business Unit and mainly the Parent Company TIM
S.p.A.. This provision decreased by 97 million euros in 2024, mainly relating to movements in the provision for
contractual risks for onerous contracts (IAS 37) of the Parent Company TIM S.p.A. At December 31, 2024, the
provision for contractual risks for onerous contracts amounted to 70 million euros, which is sufficient to
compensate the negative margins over the entire duration of the surviving contract under a connectivity
arrangement. It should be noted that, during 2024, the contract was entered into with DAZN and the related
risk provision (110 million euros) was fully used.
TIM Group Consolidated
Financial Statements
Note 21
Employee benefits
354
NOTE 23
MISCELLANEOUS PAYABLES AND OTHER NON-
CURRENT LIABILITIES
These decreased by 430 million euros compared to December 31, 2023. The breakdown is as follows:
(million euros)
12/31/2024
12/31/2023
Miscellaneous payables (non-current)
Payables to social security agencies
381
595
Income tax payables (*)
1
—
Other payables
11
24
(a)
393
619
Other non-current liabilities
Deferred revenues from customer contracts (Contract liabilities)
128
103
Other deferred revenue and income
360
329
Capital grants
15
275
(b)
503
707
Total
(a+b)
896
1,326
(*) Analyzed in the Note "Income tax expense".
Miscellaneous payables (non-current) include:
■
payables to social security agencies amounting to 381 million euros mainly related to the non-current
debt position with INPS against the application of the agreements signed with the Trade Unions
concerning the application of Art. 4 of Law no. 92 of June 28, 2012 and former Art. 41, paragraph 5bis,
Legislative Decree no. 148/2015. This debt position (non-current and current portion) is as follows:
(million euros)
12/31/2024
12/31/2023
Non-current payables
Due from 2 to 5 years after the end of the reporting period
367
538
Due beyond 5 years after the end of the reporting period
14
57
381
595
Current payables
231
290
Total
612
885
■
other payables amounting to 11 million euros mainly pertaining to the Brazil Business Unit.
Other non-current liabilities include:
■
Deferred revenues from contracts with customers (contract liabilities) of 128 million euros (103 million
euros at December 31, 2023) which are reversed to the income statement according to the duration of the
contractual obligations between the parties, averaging 24 months; therefore, the balance as at December
31, 2024 will be reversed to the income statement generally by 2026. In particular, the item includes:
•
TIM S.p.A. deferred revenues for subscription charges and rent and maintenance payments (79
million euros);
•
Deferred revenues of TIM S.p.A. for outsourcing charges (26 million euros).
■
Other deferred income and income amounting to 360 million euros which mainly includes:
•
the non-current portion of deferred income related to the Master Services Agreement signed by TIM
S.p.A. with FiberCop S.p.A. (207 million euros);
•
The non-current portion of the deferred gain on the sale and lease-back of telecommunication towers
by the Brazil Business Unit (approx. 81 million euros);
•
The non-current portion of deferred revenues related to agreements for the sale of the transmission
capacity.
■
Capital grants of 15 million euros; the item represents the component to be charged to the income
statement on the basis of the residual useful life (estimated to be about 18 years) of the assets to which
the grants pertain and is mainly related to the implementation of the 5G Coverage Plan as part of the
NRRP projects.
TIM Group Consolidated
Financial Statements
Note 23
Miscellaneous payables and other non-current liabilities
355
NOTE 24
TRADE AND MISCELLANEOUS PAYABLES AND
OTHER CURRENT LIABILITIES
This item rose by 2,310 million euros compared to December 31, 2023. The figure breaks down as follows:
(million euros)
12/31/2024
of which
Financial
Instruments
12/31/2023
of which
Financial
Instruments
Trade payables
Payables due to suppliers
4,029
4,029
5,042
5,042
Payables to other telecommunications operators
322
322
399
399
(a)
4,351
4,351
5,441
5,441
Tax payables
(b)
136
194
Miscellaneous payables
Payables for employee compensation
183
323
Payables to social security agencies
308
415
Payables for TLC operating fee
527
480
Dividends approved, but not yet paid to shareholders
48
48
52
52
Other
216
89
1,047
49
Employee benefits (except for employee severance
indemnities) for the current portion expected to be
settled within 12 months
3
4
Provisions for risks and charges for the current
portion expected to be settled within 12 months
392
506
(c)
1,677
137
2,827
101
Other current liabilities
Liabilities from customer contracts (Contract
liabilities)
797
101
829
105
Other deferred revenue and income
113
50
Other
43
(d)
910
101
922
105
Total
(a+b+c+d)
7,074
4,589
9,384
5,647
Further details on Financial Instruments are provided in the Note 20 "Supplementary disclosure on financial
instruments".
Trade payables, amounting to 4,351 million euros (5,441 million euros as of December 31, 2023) mainly refer to
the Domestic Business Unit (3,525 million euros) and the Brazil Business Unit (824 million euros).
As of December 31, 2024, trade payables due in more than 12 months amounted to 40 million euros (44 million
euros as of December 31, 2023) and are mainly represented by payables of the Brazil Business Unit for the
renewal of telecommunications licenses.
Supplier finance arrangements
TIM S.p.A. makes available to suppliers the use of certain financial instruments that enable them to advance
the collection of invoices (so-called reverse factoring).
These instruments do not involve TIM in any modification of the payment terms contractually established with
the supplier, as they are solely available to the suppliers themselves to manage, at their discretion, more
efficiently the relationship with financial institutions.
In addition, in some cases, TIM S.p.A. negotiates extensions of payment terms with specific suppliers so as to
bring them into line with the usual payment terms of the relevant product category.
In 2024, these transactions resulted in payment terms consistent with those applied to non-agreed suppliers of
120 days. The amounts subject to agreements in 2024 are overall in line with those of the previous year and
therefore did not have a significant impact on the company's balance sheet figures.
Tax payables amounted to 136 million euros and related mainly to both tax payables of the Brazil Business
Unit (92 million euros) and TIM S.p.A. payables. (34 million euros), mostly related to the amount owed to the
tax authorities for withholdings made as withholding agent (28 million euros) in addition to the VAT payable (2
million euros) and the government concession tax payable (2 million euros).
Miscellaneous payables mainly comprise:
■
the debt position of the Brazil Business Unit for the Taxa de Fiscalização de Funcionamento (TFF), a
contribution suspended from 2020;
TIM Group Consolidated
Financial Statements
Note 24
Trade and miscellaneous payables and other current liabilities
356
■
the current debt position towards INPS in view of the application of the agreements signed with the trade
unions regarding the application of Art. 4 of Italian Law no. 92 of June 28, 2012 and former Art. 41,
subsection 5bis, Italian Legislative Decree no. 148/2015;
■
advances on State grants to the parent company TIM S.p.A. for projects under the National Recovery and
Resilience Plan (NRRP) amounted to 53 million euros;
■
the current portion of employee benefits and provisions amounted to 395 million euros.
Other current liabilities amounted to 910 million euros (922 million euros at December 31, 2023). They break
down as follows:
■
Liabilities arising from contracts with customers (Contract liabilities), amounted to 797 million euros.
This item includes liabilities to customers related to the obligations of Group companies to transfer goods
and services for which they have received consideration. Liabilities with customers, generally with a
maturity of up to 12 months, are shown below.
Specifically:
•
contract liabilities amounting to 6 million euros; the item includes bundle contracts (good and services
packages) with performance obligations with different timing for the recognition of revenues and
consequent deferral of the fees originally recognized;
•
customer-related items, equal to 435 million euros; the item includes trade payables following
contractual relationships, such as the payable for prepaid traffic and the subscription charges charged
in advance;
•
progress payments and advances equal to 45 million euros relating to trade payables following
prepayments, such as deposits made by subscribers for telephone calls;
•
Deferred revenue from contracts with customers, amounting to 311 million euros, essentially
comprising the TIM S.p.A. Parent Company's deferred revenue for:
–
rent and maintenance (237 million euros);
–
subscription charges (51 million euros).
■
Other deferred revenue and income amounted to 113 million euros. They mainly refer to deferred
revenues deriving from contracts for the sale of transmission capacity.
TIM Group Consolidated
Financial Statements
Note 24
Trade and miscellaneous payables and other current liabilities
357
NOTE 25
DISPUTES AND PENDING LEGAL ACTIONS,
OTHER INFORMATION, COMMITMENTS AND
GUARANTEES
A description is provided below of the most significant judicial, arbitration and tax disputes in which TIM Group
companies are involved at December 31, 2024, as well as those that came to an end during the period.
The TIM Group has posted liabilities totaling 336 million euros for those disputes described below where the risk
of losing the case has been considered probable.
It should be noted that for some disputes described below, on the basis of the information available at the
closing date of this Financial Disclosure and with particular reference to the complexity of the proceedings, to
their progress, and to elements of uncertainty of a technical-trial nature, it was not possible to make a reliable
estimate of the size and/or times of possible payments, if any. Moreover, in those cases in which disclosure of
information about a dispute could seriously jeopardize the position of TIM or its subsidiaries, only the general
nature of the dispute is described.
Lastly, as regards the proceedings with the Antitrust Authority, please note that based on Article 15, subsection
1 of Italian Law 287/1990 (“Antitrust Regulations”), the Authority has the right to impose an administrative
sanction calculated on the turnover of the Group in cases of breaches considered serious.
(a) Significant disputes and pending legal actions
International tax and regulatory disputes
At December 31, 2024, companies belonging to the Brazil Business Unit were involved in tax or regulatory
disputes, the outcome of which is estimated as a possible loss totaling around 22.3 billion reais (19.2 billion
reais at December 31, 2023), corresponding to approximately 3.5 billion euros at December 31, 2024.
The main types of litigation are listed below, classified according to the tax to which they refer.
Federal taxes
In relation to the federal level of taxation, the following disputes should be noted:
■
disallowance of the tax effects of the merger between the companies of the TIM Brasil Group;
■
denial of the SUDENE regional tax benefit, due to alleged irregularities in the management and reporting
of the benefit itself;
■
challenges regarding offsetting against previous tax losses;
■
further challenges regarding the tax deductibility of the amortization of goodwill;
■
imposition of income tax on certain types of exchange rate differences;
■
imposition of withholding taxes on certain types of payments to foreign entities (for example, payments
for international roaming);
■
further challenges regarding offsets made between taxes payable and group company credit positions.
Overall, the risk for these cases, considered to be possible, amounts to 5.1 billion reais (3.1 billion reais at
December 31, 2023).
During the third and fourth quarters of 2024, an appeal was filed in relation to a dispute regarding the use of
PIS and COFINS credits, deriving from the exclusion of ICMS from the respective calculation bases, in offsetting
against the taxes due.
The amount in question, classified as a possible risk, amounts to about 1.6 billion reais.
State taxes
Within the scope of the state levy, there are numerous challenges regarding ICMS, and in particular:
■
challenges concerning the reduction of the tax base due to discounts granted to customers, as well as
challenges regarding the use of tax credits declared by group companies, with respect to the return of
loaned telephone handsets, and following the detection of contract frauds to the detriment of the
companies;
■
subjection of some fees owed to group companies and classified by them as fees for services other than
telecommunications to ICMS;
■
challenges over the use of the "PRO-DF" tax benefit originally granted by some states, and subsequently
declared unconstitutional (the challenge refers to the actual credit due to ICMS, declared by TIM Cellular,
now incorporated into TIM S.A., on the basis of the aforementioned tax benefits);
■
challenges relating to the use of ICMS credits claimed by Group companies as a result of the acquisition of
property, plant and equipment, and in relation to the supply of electricity to the companies, as well as in
application of the provisions on acting as a withholding agent;
■
fines imposed on group companies for irregularities in tax return compliance;
TIM Group Consolidated
Financial Statements
Note 25
Disputes and pending legal actions, other
information, commitments and guarantees
358
■
challenges of ICMS credits in relation to the tax substitution procedure applicable when equipment is
bought and distributed in different states;
■
challenges of ICMS credits deriving from the “special credit” recognized by the company to its prepaid
customers, against subsequent top-ups.
Overall, the risk for these cases, considered to be possible, amounts to 11.1 billion reais (10.4 billion reais at
December 31, 2023).
Municipal taxes
Among disputes classified with a “possible” degree of risk, there are some relating to municipal taxes for a
total amounting to around 1.9 billion reais (around 1.7 billion reais at December 31, 2023).
FUST and FUNTTEL
The main challenges about contributions to the regulatory body (Anatel), and in particular in terms of FUST
and FUNTTEL, concern whether or not interconnection revenues should be subject to these contributions.
Overall, the risk for these cases, considered to be possible, amounts to 4.2 billion reais (4.0 billion reais at
December 31, 2023).
Golden Power Case
In August 2017 the Prime Minister's office brought proceedings against TIM (as well as Vivendi) in order to verify
the fact that TIM has an obligation to notify, pursuant to the “Golden Power” law, Vivendi’s acquisition of
corporate control of TIM and the strategic assets it holds. In September 2017, the proceedings in question
concluded by affirming that this obligation did exist for TIM with effect from May 4, 2017 (the date of the
Shareholders’ Meeting that renewed TIM’s corporate boards).
As a result of this decision by the Presidency of the Council of Ministers, new and separate administrative
proceedings started for the imposition on TIM of the financial penalty laid down by the Golden Power law for
non-compliance with the aforementioned obligation to notify. These proceedings ended on May 8, 2018 with
the imposition of a financial penalty of 74.3 million euros.
The Presidency of the Council of Ministers also exercised Golden Power under the decrees of October 16, 2017
and November 2, 2017. The Company, is convinced that it has the legal arguments to demonstrate that it was
under no obligation to notify the control exercised over it by Vivendi, filed separate extraordinary appeals to
the President of the Republic to request the abrogation of the order of September 28, 2017 for assessment of
the Special Powers Decree of October 16, 2017, and the Special Powers Decree of November 2, 2017, and before
the Lazio Regional Administrative Court (TAR) against the aforementioned order of May 8, 2018, which
imposed a financial penalty, requesting its precautionary suspension. As regards the appeal to the Lazio
Regional Administrative Court (TAR) against the provision of May 8, 2018, which imposed the financial penalty,
the TAR, in upholding in July 2018 the interim petition lodged by the Company, has suspended payment of the
penalty. Subsequently, in a non-definitive ruling dated May 2019, the Lazio Regional Administrative Court
(TAR), in view of the “originality” of the distinction in proceedings between the assessment notice of
September 28, 2017 and the penalty-imposing decree of May 8, 2018: (i) accepted TIM’s request for provisional
measures to suspend the fine conditional on the offer of the guarantee; (ii) granted the suspension of the
procedure to wait for the final judgment in the (injurious) case pending before the President of the Republic
against the assessment notice of September 28, 2017; (iii) rejected the procedural objections raised by the
defendant administrations.
It should also be noted that in May 2018 a guarantee bond for 74.3 million euros was issued in favor of the
Presidency of the Council. TIM had been requested to submit such a bond for its application to Lazio TAR for
precautionary suspension of the collection of the fine imposed for alleged breach of Art. 2 of Decree Law 21 of
March 15, 2012 (the “Golden Power” law). The guarantee bond was subsequently renewed up to November 30,
2025.
On September 13, 2023, TIM was notified that more than five years had elapsed since the appeal was filed, in
accordance with Article 82 of the Code of Civil Procedure. TIM therefore requested that a public hearing be held
to discuss the appeal. The public hearing was scheduled for January 10, 2024. Following the hearing, by way of
order 709 of January 15, 2024, the Regional Administrative Court upheld the suspension of the proceedings, as
previously dictated by non-final judgment 6310 of May 23, 2019, and upheld the suspension of the
enforcement of the measure under the conditions dictated by that ruling, all of which pending the decision in
the extraordinary proceedings against the assessment notice of September 28, 2017.
In Opinion no. 1259/2024, rendered in the extraordinary proceeding against the assessment notice of
September 28, 2017, the Council of State agreed with the opinion expressed by the Lazio Regional
Administrative Court in its non-final judgment of May 2019, finding the appeal inadmissible because the
contested notice does not qualify as a measure but qualifies as a sub-procedural act forming part of the
sanctioning procedure (appealed to the Lazio Regional Administrative Court). Hence, on December 5, 2024, TIM
applied to the Lazio Regional Administrative Court for a precautionary measure to adjourn the proceedings
against the sanctioning decree, subject to the possibility of a further suspension pending the decision of the
Council of State on the extraordinary proceedings against the still pending Special Powers Decrees, and/or
pending the decree of the Presidency of the Republic to implement the aforementioned Council of State
Opinion no. 1259/2024. The hearing before the Regional Administrative Court is set for March 19, 2025.
Furthermore, TIM appealed before the Lazio TAR and then appealed before the Council of State against the
provision with which Consob, on September 13, 2017, affirmed Vivendi’s control over TIM. In December 2020,
the Council of State issued a final judgment upholding TIM’s appeal and canceling the provision by Consob, a
significant premise to the entire subsequent proceedings of the Presidency of the Council in relation to the
obligation to Golden Power notification as described above. On June 14, 2021, Consob submitted an
extraordinary appeal to the Court of Cassation on grounds of jurisdiction; TIM filed an appearance, objecting
that the appeal is unlawful and inadmissible. Following the hearing in chambers held on October 11, 2022, on
January 24, 2023, the order was published whereby the Court of Cassation declared that Consob’s petition was
unacceptable, consequently ordering it to pay the dispute expenses.
TIM Group Consolidated
Financial Statements
Note 25
Disputes and pending legal actions, other
information, commitments and guarantees
359
Antitrust Case A428
At the conclusion of case A428, in May 2013, AGCM (the Italian Competition Authority) imposed two
administrative fines of 88,182,000 euros and 15,612,000 euros on TIM for abuse of its dominant position. The
Company allegedly (i) hindered or delayed activation of access services requested by OLOs through unjustified
and spurious refusals; (ii) offered its access services to final customers at economic and technical conditions
that allegedly could not be matched by competitors purchasing wholesale access services from TIM itself, only
in those geographic areas of the Country where disaggregated access services to the local network are
available, and hence where other operators can compete more effectively with the Company.
TIM appealed against the decision before the Regional Administrative Court (TAR) for Lazio, applying for
payment of the fine to be suspended. In particular, it alleged: infringement of its rights to defend itself in the
proceedings, the circumstance that the organizational choices challenged by AGCM (the Italian Competition
Authority) and allegedly at the base of the abuse of the OLO provisioning processes had been the subject of
specific rulings made by the industry regulator (AGCom), the circumstance that the comparative examination
of the internal/external provisioning processes had in fact shown better results for the OLOs than for the TIM
retail department (hence the lack of any form of inequality of treatment and/or opportunistic behavior by TIM),
and (regarding the second abuse) the fact that the conduct was structurally unsuitable to reduce the margins
of the OLOs.
In May 2014, the judgment of the Lazio TAR was published, rejecting TIM’s appeal and confirming the fines
imposed in the original order challenged. In September 2014 the Company appealed against this decision.
In May 2015, with the judgment no. 2497/15, the Council of State found the decision of the court of first
instance did not present the deficiencies alleged by TIM and confirmed the AGCM (the Italian Competition
Authority) ruling. The company had already proceeded to pay the fines and the accrued interest.
In a decision notified in July 2015, AGCM (the Italian Competition Authority) started proceedings for non-
compliance against TIM, to ascertain if the Company had respected the notice to comply requiring it to refrain
from undertaking behaviors analogous to those that were the object of the breach ascertained with the
concluding decision in case A428 dated May 2013.
On January 13, 2017, TIM was served notice of AGCM’s final assessment, which recognized that TIM had
complied in full with the A428 decision and, as such, the conditions for the imposition of a fine for non-
compliance were not present.
AGCM (the Italian Competition Authority) recognizes, furthermore, that TIM’s behavior subsequently to the
2013 proceedings has been directed towards continuous improvement of its performance in the supply of
wholesale access services concerning not only the services which were the subject of the investigation, but also
the new Ultrabroadband access services. In assessing compliance, AGCM (the Italian Competition Authority)
recognized the positive impact of the implementation, albeit not yet completed, of TIM’s New Equivalence
Model (NME). The AGCM (the Italian Competition Authority) decision orders TIM to: (i) proceed with the
implementation of the NME until its completion which is expected to be by April 30, 2017; (ii) to inform the
Authority about the performance levels of the systems for providing wholesale access services and about the
completion of the corresponding internal reorganization plan by the end of May 2017. The Company quickly
complied with both orders, and the Authority communicated its satisfaction on August 9, 2017.
Vodafone lodged an appeal with the Lazio Regional Administrative Court against the final decision in the
proceedings for non-compliance taken by AGCM (the Italian Competition Authority). TIM filed an appearance,
as in the other lawsuits filed in March 2017 by the operators CloudItalia, KPNQWest Italia and Digitel. With
judgments 311 and 312/23 respectively of January 11, 2023, the regional administrative court rejected the
appeals lodged by KPNQWest and CloudItalia. On April 11, 2023, KPNQWest (now Comm 3000) filed an appeal
the regional administrative court’s ruling before the Council of State. The public hearing before the Council of
State was held on October 24, 2024. In a ruling dated November 6, 2024, the Council of State rejected
COMM3000’s appeal on the merits, confirming the legitimacy of the AGCM order that ruled TIM to be
compliant with Order A428.
Colt Technology Services - A428
With writ of summons before the Milan Court served in August 2015, the operator Colt Technology Services
filed a damages claim based on the A428 decision, requesting compensation for alleged damages suffered
from 2009 to 2011 as a result of purportedly inefficient and discriminatory conduct by TIM in the wholesale
service supply process. The damage claimed was quantified as 27 million euros in loss of profits for the alleged
non-acquisition of new customers, or for the alleged impossibility of supplying new services to the customers it
had already acquired; the other party also formulated a request for compensation for the damages to its
image and commercial reputation. This case follows the extrajudicial claim for approximately 23 million euros,
previously advanced by Colt in June 2015, which the Company rejected in its entirety. TIM filed an appearance,
contesting all of the plaintiff’s allegations. In a judgment of February 21, 2024, the Court of Milan rejected in its
entirety Colt's claim for damages in the amount of 27 million euros.
Colt served a notice of appeal against the judgment. At the hearing in the Milan Court on February 18, 2025,
the judge rejected the opposing party's preliminary motions and remanded the case for decision. The hearing
for closing arguments was set for March 25, 2026.
TIM Group Consolidated
Financial Statements
Note 25
Disputes and pending legal actions, other
information, commitments and guarantees
360
COMM 3000 S.p.A. (formerly KPNQWest Italia S.p.A.) - A428
With writ of summons before the Rome Court, COMM 3000 S.p.A.(formerly KPNQWest Italia S.p.A.) filed a
damages claim for a total of 37 million euros in compensation for alleged anticompetitive and abusive conduct
over the period 2009–2011, in the form of technical boycotting (refusals to activate wholesale services – KOs);
the claim was based on the contents of the decision of AGCM (the Italian Competition Authority) that settled
the A428 case. TIM filed an appearance, contesting all of the plaintiff’s allegations. In the judgment with ruling
in April 2019, the Court of Rome partially received the petitions of COMM 3000 S.p.A. (formerly KPNQWest Italia
S.p.A.), sentencing TIM to pay an amount significantly lower than the amount in the counterparty's damages
claim. In June 2019, TIM appealed against the judgment. In the judgment given in April 2021, the Court of
Appeal of Rome partly upheld TIM’s appeal, reducing the amount of the compensation due to COMM 3000,
which was in any case entirely covered by the relevant provision. In November 2021, TIM has appealed to the
Court of Cassation over the judgment of the Court of Appeal of Rome in. The meeting in Council Chamber took
place on June 13, 2023. By interlocutory order of July 19, 2023, the Court reinstated the case to the case
register. On October 30, 2024, a public hearing was held and the case was reserved for decision. In a ruling
dated January 28, 2025, the Supreme Court upheld the partially favorable ruling of the Rome Court of Appeal.
Eutelia and Clouditalia Telecomunicazioni (now Irideos) - A428
With a writ of summons dated May 2020, Eutelia in Extraordinary Administration and Clouditalia
Telecomunicazioni S.p.A., purchaser of Eutelia’s TLC branch, brought an action against TIM before the Court of
Rome, making claims for damages, of around 40 million euros, for damages allegedly suffered, in the period
2009-2012, following the technical boycott and margin squeeze conduct, subject of AGCM (the Italian
Competition Authority) procedure A428. TIM filed an appearance, contesting the claims made by the opposing
party and formulating a counterclaim, subject to quantification of the damages incurred during the
proceedings. On April 1, 2022, AGCM (the Italian Competition Authority) deposited the opinion envisaged by
Art. 14, third subsection of Italian Legislative Decree 3/2017, whereby it: (i) proposed certain benchmarks for use
to define the counterfactual scenario on which basis to quantify the damages allegedly suffered by Eutelia and
Clouditalia; (ii) provided some additional indication and criteria to estimate the various damage items
demanded by Eutelia and Clouditalia. At the hearing held on June 15, 2022, the Investigating Judge assigned
time to the parties until July 8, 2022, by which to deposit written notes on the implications of the opinion of the
AGCM (the Italian Competition Authority) and the contents of any queries to be raised with the court appointed
expert. On October 24, 2022, the judge lifted the reservation and ordered an expert report on the an of TIM’s
conduct and the quantum of any damages suffered by Eutelia and Irideos as a result of such. On November 15,
2022, the court-appointed expert witness was sworn in. The hearing to examine the court-appointed expert,
originally scheduled for October 18, 2023, has been postponed to February 7, 2024. Following a request from
the court-appointed expert to extend the deadline for filing the final report, the Judge once again postponed
the hearing to examine the court-appointed expert to May 22, 2024. Ahead of the cross-examination of the
court-appointed expert, TIM filed a motion to renew or add to the expert’s operations. The motion was not
granted by the Judge, who set a hearing for closing arguments on September 17, 2025.
Antitrust case A514
In June 2017 AGCM (the Italian Competition Authority) started proceedings A514 against TIM, to ascertain a
possible abuse of its dominant market position in breach of article 102 of the “Treaty on the Functioning of the
European Union”. The proceedings were started based on some complaints filed in May and June 2017, by
Infratel, Enel, Open Fiber, Vodafone and Wind Tre, and concerns a presumed abuse of TIM’s dominant position
in the market for wholesale access services and for retail services using the Broadband and Ultrabroadband
fixed network. In particular, the AGCM (the Italian Competition Authority) hypothesized that TIM had adopted
conduct aimed at: (i) slowing and hindering the course of the Infratel tender processes so as to delay, or render
less remunerative the entry of another operator in the wholesale market; (ii) pre-emptively securing customers
on the retail market for Ultrabroadband services by means of commercial policies designed to restrict the
space of customer contendibility remaining for the competitor operators.
After the start of the proceedings, the Authority's officials carried out an inspection at some of TIM’s offices in
the month of July 2017. On November 2, 2017, TIM filed a defense brief in which, in support of the correctness
of its actions, it challenged all the arguments that the conduct it had allegedly engaged in, and which was the
subject of the case, was unlawful.
On February 14, 2018, AGCM (the Italian Competition Authority) resolved to extend the scope of the case to
investigate further behavior concerning TIM’s wholesale pricing strategy on the market for wholesale access to
Broadband and Ultrabroadband, and the use of the confidential information of customers of the alternative
operators.
On July 5, 2018 TIM filed proposed undertakings which, if accepted by the Authority, would close the
investigation without any offence being established or sanction being administered. The undertakings were
considered as admissible by the Authority, that market tested them in August and September.
On October 30, 2018, TIM replied to observations made by third parties and modified its proposed
undertakings. With its decision notified on December 4, 2018, AGCM (the Italian Competition Authority) once
and for all rejected the proposed series of undertakings as it considered them unsuitable in light of the
objections raised.
On March 4, 2019, TIM requested AGCM (the Italian Competition Authority) for an extension of the deadline for
closing the proceedings (initially set for May 31, 2019).
On April 10, 2019, AGCM (the Italian Competition Authority) resolved to extend the deadline for conclusion of
the proceedings until September 30, 2019. On May 17, 2019, AGCM (the Italian Competition Authority) notified
TIM of the results of the investigation (CRI). In the CRI, AGCM (the Italian Competition Authority) essentially
confirmed the case for the prosecution outlined in the start-up and extension of the proceedings orders.
On June 12, 2019 AGCM (the Italian Competition Authority) extended the deadline for deposit of TIM's final
defence to September 20, 2019 and set the final hearing for September 25, 2019.
TIM Group Consolidated
Financial Statements
Note 25
Disputes and pending legal actions, other
information, commitments and guarantees
361
On September 18, 2019, AGCM (the Italian Competition Authority) resolved to further extend the deadline for
conclusion of the proceedings, which were scheduled for February 28, 2020.
On March 6, 2020, TIM was notified of the decision to close the investigation: AGCM (the Italian Competition
Authority) ruled that TIM had abused its dominant position, finding that TIM had put in place an
anticompetitive strategy designed to hinder the competitive development of investment in Ultrabroadband
network infrastructure. The fine imposed on TIM for the anti-competitive offence is 116,099,937.60 euros.
On June 25, 2020 TIM sent AGCM (the Italian Competition Authority) the so-called compliance report as
ordered in the final provision.
In May 2021, the Company in any case paid the fine.
TIM appealed the aforementioned fine before the Lazio Regional Administrative Court (TAR). By judgment
1963/2022 of February 28, 2022, TIM’s appeal was rejected; TIM has appealed to the Council of State against
the decision of the regional administrative court.
In August 2022, Irideos notified a deed of intervention ad opponendum with respect to TIM’s principal appeal.
The related hearing for oral discussion was scheduled for May 25, 2023. At the end of the hearing, the Council
of State ordered a report from a court-appointed expert on three issues regarding the profitability of the
investment in “white areas” with low population density. On October 11, 2023, the court-appointed experts
were sworn-in in the Council of State and requested an extension to the completion deadlines. Under the new
deadlines granted by the Council of State, the expert report was filed in May 2024.
At the public hearing on October 10, 2024, the case was reserved for decision; Open Fiber requested that the
operative part be published in advance. On October 25, 2024, the Council of State published the operative part
of the judgment, in which it dismissed the motions (including preliminary motions) of the parties and partially
upheld the appeal and, partially reforming of the appealed judgment, upheld the appeal at first instance only
insofar as the measurement of the penalty imposed, which is reduced by 25%; it dismissed all other parts of
the appeal and upheld the contested order from all other counterclaims. On November 13, 2024, the judgment
was published and TIM initiated the necessary procedures to obtain partial restitution of the penalty in the
amount of 29,024,984.40 euros, plus statutory interest, from the date of payment until the date of actual
restitution. On February 27, 2025, AGCM notified the Ministry of Enterprises and Made in Italy of the clearance
for payment to TIM of the aforementioned amount following the Authority's redetermination at 87,074,953.20
euros of the penalty imposed on TIM for the conduct ascertained in Order No. 28162 of February 25, 2020.
Open Fiber
In March 2020, Open Fiber (OF) sued TIM before the Court of Milan, claiming damages of 1.5 billion euros for
alleged abuse of an exclusive and dominant position in relation to OF. The alleged actions consist of: (i)
preemptive investments in FTTC networks in white areas; (ii) initiating specious legal action to obstruct Infratel
tenders; (iii) spurious repricing of certain wholesale services; (iv) commercial lock-in offers on the retail market;
(v) false disclosure to AGCOM in connection with the approval of a wholesale offer and spreading rumors about
TIM being interested in acquiring OF; (vi) discriminatory access conditions to TIM passive infrastructure. TIM
filed an appearance, contesting the arguments of OF. Enel S.p.A. intervened in the proceedings, asking that
TIM be ordered to compensate all damages suffered and being suffered by Enel and OF, without, however,
quantifying such. During the course of proceedings, Open Fiber redetermined the damage allegedly suffered,
taking it to 2.6 billion euros plus interest and monetary revaluation. Open Fiber has also clarified that it believes
such damages are still to be suffered. Enel then quantified the damages allegedly suffered as approximately
228 million euros, plus interest. On October 19, 2022, the hearing was held for admission of the evidence, after
which the judge reserved the right to deliberate. By order of July 17, 2023, the Court of Milan lifted the
reservation and deferred the hearing for delivery of the verdict until April 3, 2024. At the hearing of April 3, the
Judge ordered that Court obtain the expert witness report rendered in the appeal proceedings brought by TIM
before the Council of State against the unfavorable ruling of the Regional Administrative Court relating to fines
imposed in relation to case A514. The case was then adjourned to be heard on June 12, 2024, with the Judge
reserving the right to deliberate.
By order served on July 5, it was deemed fit – in order to adjudicate whether to stay the proceedings as
requested by TIM – to invite the Parties to make their closing arguments. For this purpose, a hearing was set for
September 18, 2024, with the Parties ordered to make their submissions in writing and invited to waive the
time limits for the filing of closing briefs. This hearing was replaced by the filing of written notes only. The Court
of Milan, in accepting the motion of TIM, ordered to stay the proceedings until the proceedings before the
Council of State are concluded.
Following the publication of the Council of State’s ruling on November 13, 2024, Open Fiber applied for the case
to be resumed on November 18, 2024, and simultaneously applied for a hearing to be set. The Board has not
yet issued any ruling in this regard.
Irideos
In January 2022, Irideos summonsed TIM to the Court of Rome, making a claim for damages allegedly suffered
as a consequence of the unlawful conduct of TIM, as sanctioned by AGCM (the Italian Competition Authority),
with the provision that concluded case A514 (“follow-on claim”). The compensation claim comes to
23,204,079.87 euros for damages caused by the anti-competitive behavior of TIM from 2017 to 2019 (with
effects also in subsequent years) on the market for services of wholesale access to the Broadband and
Ultrabroadband fixed network (the “wholesale market”) and on the market for retail telecommunications
services on the Broadband and Ultrabroadband fixed network (the “retail market”). TIM filed an appearance,
contesting the opposing party’s arguments. At the hearing held on June 1, 2022, the investigating judge (i)
assigned the parties time for depositing the briefs with terms running from February 15, 2023 and (ii) deferred
the case to the hearing of June 7, 2023. The hearing for the taking of evidence was set for October 5, 2023. The
Judge, having taken note of Irideos' request to defer the hearing and motivated by the judgment pending in
case A514 before the Council of State, deferred the hearing of the parties until October 10, 2024, which was
further postponed to March 13, 2025.
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Eutelia and Voiceplus
In June 2009, Eutelia and Voiceplus asked that alleged acts of abuse by TIM of its dominant position in the
premium services market (based on the public offer of services provided through so-called Non Geographic
Numbers) be investigated. The complainants quantified the total damages at approximately 730 million euros.
The case follows a precautionary procedure in which the Milan Appeal Court prohibited certain behaviours of
the Company relating to the management of some financial relations with Eutelia and Voiceplus concerning
the Non Geographic Numbers, for which TIM managed the payments from the end customers, on behalf of
such OLOs and in the light of regulatory requirements. After the ruling of the Milan Court of Appeal accepting
TIM's objections, declaring that it was not competent in this matter and referring the case to the Civil Court,
Eutelia (in extraordinary administration) and Voiceplus (in liquidation) resubmitted the matter to the Court of
Milan. The first hearing took place in March 2014. TIM filed an appearance challenging the claims of the other
parties. After the collapse of Voiceplus, the Court of Milan declared the case suspended in an order in
September 2015. The case was later resumed by Voiceplus.
In its judgment issued in February 2018, the Court of Milan accepted TIM's defence and rejected the plaintiffs’
claim for compensation, ordering them, jointly and severally, to pay the legal costs. In March 2018, Eutelia and
Voiceplus lodged an appeal against the judgment in the first instance.
TIM appealed against the claim, requesting confirmation in full of the judgment in the first instance. The
appeal of Eutelia and Voiceplus was fully rejected with the judgment of August 5, 2019. In December 2019
Eutelia and Voiceplus appealed to the Court of Cassation against the judgment of the Court of Appeal. TIM
notified a counterclaim asking confirmation of the ruling appealed against. The hearing in chambers was
scheduled for February 16, 2023. At the hearing on February 16, 2023, at the request of the applicants, it was
ordered that the case be heard in open court, with a hearing scheduled for June 12, 2024.
The Court of Cassation, in a ruling published on June 25, 2024, declared inadmissible Eutelia and Voiceplus’
appeal against the merit-based judgments which had thrown out the adversary’s enormous compensation
claim.
The Court found that (i) the question of relevant market was not relevant to the ratio decidendi, and (ii) the
plaintiffs’ other complaints aimed to call substantive deliberations into question.
The Court also ordered the counterparties to pay costs amounting to approximately 100,000.00 euros plus
accessories and the lump-sum reimbursement of general expenses in the maximum percentage allowed by
law.
28-day billing
AGCom resolution 121/17/CONS introduced instructions on billing intervals for telephony, prescribing, for fixed
telephony, that the interval should be monthly, or multiples thereof, and, for mobile telephony, that it should
be at least four-weekly. TIM appealed Resolution 121/17/CONS to the Regional Administrative Court. The
judgment rejecting the appeal was published in February 2018. TIM appealed this judgment to the Council of
State in June 2018. On September 23, 2020, the non-definitive ruling was published whereby the Council of
State joined the appeals submitted by TIM, Vodafone, Fastweb and Wind Tre and ordered the prejudicial
deferral to the European Union Court of Justice (EUCJ) on whether or not the Authority had the power to
regulate the frequency of renewal of the commercial offers and invoicing periods, at the same time rejecting
the other grounds of appeal submitted by the operators and suspending proceedings. On June 8, 2023, the EU
Court of Justice published its decision concluding that the Italian legislation granting AGCom the power to
impose a monthly or multi-monthly billing requirement on fixed and convergent telephone service operators
for the renewal and invoicing of such offers, is not contrary to EU law. When proceedings resumed before the
Council of State in December 2023, TIM requested that its appeal be ruled inadmissible due to a lack of
interest. On January 18, 2024, the State Council declared the right to be extinguished.
With its Resolution 499/17/CONS, having confirmed the breach of Resolution 121/17/CONS, AGCom fined TIM
1,160,000 euros, ordering it to make provision – when the billing cycle was restored to monthly intervals or
multiples thereof – to return the amounts corresponding to the fee for the number of days that, from June 23,
2017, had not been used by the users in terms of the supply of service due to the misalignment of the four-
weekly and monthly billing cycles.
In March 2018 with resolution no. 112/18/CONS AGCom (i) revoked the preceding resolution 499/17/CONS in the
part in which TIM was ordered to repay the amounts presumably lost from June 23, 2017 onwards, with the
four-weekly billing cycle, (ii) cautioned TIM, with regard to fixed-line voice services only, against postponing the
starting date of invoices issued after the return to monthly invoicing by the same number of days as those
presumably deducted starting from June 23, 2017 with the four-weekly invoicing cycle.
Under Presidential Decree 9/18/PRES, AGCom amended the provisions of Decision 112/18/CONS requiring the
deferment of billing once the billing cycle was restored to monthly intervals, or multiples thereof, while also
ordering that the timescales for complying with the order would be identified after hearings with the operators
and the main consumer protection associations.
In July 2018, AGCom issued resolution 269/18/CONS, with which it set December 31, 2018 as the date by which
the operators had to return to their fixed network customers a number of days of service equal to those eroded
as an effect of 28-day billing, or propose to the affected customers any alternative compensatory measures,
after having notified them to AGCom. TIM has appealed all of the above resolutions.
With the judgment published in November 2018, the Regional Administrative Court (TAR) canceled the
pecuniary administrative sanction of 1.16 million euros imposed with Resolution 499/17/CONS, and confirmed
the obligation of restitutio in integrum to the fixed-line customers by December 31, 2018, the grounds for the
judgment were instead published on May 10, 2019. TIM appealed the judgment to the Council of State.
In judgment 39 of January 2, 2024, the Council of State rejected TIM's main appeal, in keeping with its prior
rulings in the appeals brought by the other operators, and upheld the legitimacy of the measures adopted by
AGCom. In the same decision, the administrative court of appeal also rejected AGCom's counter-appeal aimed
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at reinstating the 1,160,000 euro sanction that had originally been imposed on TIM and was later annulled by
the Lazio Regional Administrative Court.
In August 2019, AGCom initiated a new sanctions procedure (CONT 12/19/DTC) for failing to comply with the
order to refund fixed and converged network customers for the days eroded by 28-day billing, through the
procedures established in resolutions 112/18/CONS and 269/18/CONS. At the end of this procedure, the
Authority found in Resolution 75/20/CONS that TIM had failed to comply with these resolutions and imposed a
fine of 3 million euros. In July 2020, TIM appealed the decision before the Regional Administrative Court. We
are waiting for a date to be fixed for the discussion hearing.
In the civil proceedings, by judgment published on October 14, 2021 the Court of Milan, under the scope of the
case on the merits brought by Associazione Movimento dei Consumatori in 2018 regarding the pricing and 28-
day renewal for fixed line and converging offers, confirmed the order given on June 4, 2018 by the same Court
upon closure of the complaint brought by TIM pursuant to Art. 669 terdecies of the Italian Code of Civil
Procedure and the measures set out therein, ordering TIM to fulfill the requests for repayment of prices paid as
a result of customer maneuvers - including discontinued, as indeed TIM had already been doing since 2018, at
the same time also extending the period relevant to the recognition of the reimbursement through to April 1,
2017 and therefore earlier than June 23, 2017, the date on which the operators will need to comply with
Resolution no. 121/17/CONS. TIM has appealed the judgment of the Court of Milan, at the same time filing a
request for suspension of its enforcement. With order of January 11, 2022, the Court of Appeal of Milan partially
accepted TIM’s request, suspending the charge in the judgment relating to the order to send a registered letter
to all discontinued customers that were subject to billing every 28 days to inform them of the possibility to
obtain a refund of the additional amounts paid as a result of the maneuver. By judgment published on
December 9, 2022, the Milan Court of Appeal confirmed the first instance judgment in full. On January 12, 2023,
TIM notified the appeal to the Court of Cassation and on January 16, 2023 it also filed the appeal pursuant to
Art. 373 of the Italian Code of Civil Procedure with the Milan Court of Appeal, asking that enforcement of the
ruling be suspended until the judgment pending before the Court of Cassation had been settled.
By order of February 14, 2023, the Milan Court of Appeal, in partially upholding TIM’s appeal, ordered
suspension of the judgment in connection with the order to send the recorded delivery letters to former
customers, whilst awaiting the decision of the Supreme Court. By Order published on February 15, 2024, the
Court of Cassation rejected TIM's appeal.
On January 24, 2025, a public hearing was held on the appeal brought by TIM against Resolution no. 75/20/
CONS in which AGCom – alleging TIM to have failed to comply with previous resolutions setting out the
procedures for the restitution of “eroded days” to customers as a result of 28-day billing - had ordered the
Company to pay a fine of 3 million euros. This is the last dispute still pending on the 28-day billing issue, the
outcome of which could be influenced by the ruling of the aforementioned action brought by the Consumer
Movement Association in the civil courts. In fact, the Civil Court of Milan, having ascertained the commercial
practice introduced by TIM to be unlawful, had ordered TIM to put in place a series of restorative measures to
compensate customers for the detrimental effects of 28-day billing (all of which were punctually fulfilled) in a
decision that was upheld in full by the Court of Cassation in 2024. Consequently, the assumptions underlying
Resolution no. 75/20 regarding TIM’s alleged non-compliance are disproved by the documentary evidence
attached in the judgment of the Regional Administrative Court, which attest that TIM fully complied with the
decision-making rules of the Ordinary Judicial Authority which formed the basis of the judgment. At the
hearing on January 24, the case was reserved for judgment by the court following discussion. On February 13,
2025, the Lazio Regional Administrative Court's ruling was published rejecting the appeal filed by TIM against
Resolution No. 75/20/CONS.
Antitrust case I820
On February 19, 2018, AGCM (the Italian Competition Authority) initiated a I820 preliminary proceeding against
the companies TIM, Vodafone, Fastweb, Wind Tre and the industry association ASSTEL to investigate the
alleged existence of an agreement among the major fixed-line and mobile telephone operators to restrict
competition by coordinating their respective commercial strategies, in breach of Art. 101 of the TFUE.
The presumed coordination, according to the opening provision of the proceedings by AGCM (the Italian
Competition Authority), would take the form of the implementation of the obligation introduced by Article 19-
quinquiesdecies of Legislative Decree 148/2017 (converted by Law 172/2017) which requires operators of
electronic communication services to send out monthly (or monthly multiples) bills and renewed offers for
fixed and mobile services.
On March 21, 2018, AGCM (the Italian Competition Authority) issued a provisional precautionary measure
against all the operators involved in the proceedings with which it ordered the suspension, pending the
proceedings, of the implementation of the agreement concerning the determination of repricing
communicated to users at the time of reformulating the billing cycle in compliance with Law 172/17 and to
independently redetermine its commercial strategy. In its decision no. 27112 of April 11, 2018, AGCM (the Italian
Competition Authority) confirmed the precautionary measure.
On June 12, 2018, TIM filed an appeal with the TAR for the quashing of said measure.
On January 31, 2020, TIM was notified of the decision to close the investigation, in which AGCM (the Italian
Competition Authority) confirmed the existence of the agreement between TIM, Vodafone, Fastweb, Wind Tre,
but excluding Asstel from participation in the agreement. The fine imposed on TIM for participation in the
anticompetitive agreement was 114,398,325 euros. In April 2020, TIM also challenged the fine order.
In a ruling published on July 12, 2021, the Lazio Regional Administrative Court upheld the petition and the
grounds added and submitted by TIM, canceling the measures taken by AGCM (the Italian Competition
Authority), including that relating to the existence of the agreement and application of the fine.
On September 11, 2021, AGCM (the Italian Competition Authority) presented a petition to the Council of State,
requesting the cancellation of the judgment given by the regional administrative court.
On July 25, 2023, the Council of State reformed the decision of the Lazio Regional Administrative Court,
upholding the validity of AGCM’s (the Italian Competition Authority) measure in Case I820 and referring to the
Authority to redetermine the fine in view of the reduced duration of the infringement.
TIM Group Consolidated
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information, commitments and guarantees
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In view of the rulings of the Council of State on the quantum of the sanction, TIM – in a petition dated August
28, 2023 – asked the AGCM (the Italian Competition Authority) for the redetermination of the sanction to take
place in full adversarial proceedings between the parties as part of a special investigation procedure.
In its order of September 26, 2023, served on the Company on October 3, 2023, the AGCM (the Italian
Competition Authority) informed TIM that it had quantified the fine at 100,670,526.00 euros, holding that it had
no margins for discretion in executing the judgment of the Council of State. On October 12, 2023, TIM filed an
appeal to overturn the judgment of the Council of State; the hearing to discuss the revocation application was
set for March 6, 2025 and has subsequently been postponed to April 10, 2025. On October 13, 2023, TIM filed an
appeal before the Lazio Regional Administrative Court to annul the measure redetermining the sanction; TIM
also requested the precautionary suspension of the measure, but this was rejected by order of November 9,
2023. A hearing on the merits has yet to be set.
In a communication dated December 6, 2023, the Authority urged TIM to pay the penalty of 100,670,526.00
euros plus legal interest accrued from November 3, 2023 until the day of actual payment amounting to
5,535,913.60 euros.
In a communication dated December 12, 2023, TIM contested the dueness of such interest due to the absence
of the prerequisites of liquidity and collectability required by Article 1282 of the Italian Civil Code, as well as an
error in identifying the start date for the calculation.
The Authority’s Budget Office responded on February 2, 2024, acknowledging an error in the calculation of
legal interest, which was therefore restated to the amount of 4,121,837.47 euros, but reiterating that the same
is due.
On March 29, 2024, TIM lodged an appeal with the Lazio Regional Administrative Court against the
communication from the Budget Office, contesting both the error in the calculation of the interest due and a
defect in the competence of the Budget Office.
Antitrust Case I850
By decision given on December 15, 2020, AGCM (the Italian Competition Authority) started an investigation in
regard to the company Telecom Italia S.p.A., Fastweb S.p.A., Teemo Bidco S.r.l., FiberCop S.p.A., Tiscali Italia
S.p.A. and KKR & Co. Inc., to ascertain the existence of any breaches of article 101 of the TFEU in relation to the
coinvestment offer.
More specifically, the investigation regards the contracts governing the establishment and operation of
FiberCop and the supply agreements with Fastweb and Tiscali. AGCM (the Italian Competition Authority)
intends to verify that such agreements do not hinder competition between operators in the medium and long-
term and assure the rapid modernization of the country’s fixed telecommunications infrastructures.
On August 6, 2021, TIM submitted a proposal of undertakings to AGCM (the Italian Competition Authority) in
order to resolve the competition concerns subject of the investigation and close the proceedings without any
sanction being applied.
On September 7, 2021, AGCM (the Italian Competition Authority) judged these commitments to not be clearly
unfounded and ruled publication on the Authority’s website from September 13, 2021; thus market testing
began and was completed by October 13, 2021, the date by which all subjects so wishing submitted their
observations to AGCM in respect of the relevant commitments.
On December 14, 2021 AGCM (the Italian Competition Authority) extended the deadline for the conclusion of
the proceedings, initially set for December 31, 2021, to February 15, 2022.
Precisely during the meeting held on February 15, 2022, AGCM (the Italian Competition Authority) finally
resolved to approve the commitments insofar as they were considered suitable to eliminate the alleged anti-
competition aspects investigated.
As envisaged by the final ruling, on April 22, 2022, TIM sent AGCM (the Italian Competition Authority) a first
report on the measures taken to fulfill the commitments made.
On May 11, 2022, AGCM (the Italian Competition Authority) notified TIM of its acknowledgment of the
measures presented in such report.
On January 31, 2023 TIM sent AGCM (the Italian Competition Authority) a second report on the implementation
of the undertakings given.
On January 30, 2024, TIM sent AGCM (the Italian Competition Authority) the required annual report on the
implementation of the undertakings given.
By petition notified in April 2022, Open Fiber challenged the above AGCM (the Italian Competition Authority)
provision no. 3002, whereby the proceedings were closed, before the regional administrative court of Lazio; the
petitioner believes that the commitments, made mandatory by the closure, are not sufficient to remove the
anticompetitive aspects identified at the start of proceedings.
Upon completion of the interim hearing of last June 1, 2022, the regional administrative court rejected the
request and scheduled the merits hearing for January 26, 2023. At the January 26 hearing, after extensive
discussion, the judge reserved the right to deliberate. By judgment of April 14, 2023, the Regional
Administrative Court rejected as unfounded the appeal of Open Fiber, which on July 10, 2023, appealed the
Regional Administrative Court’s judgment to the Council of State.
The Council of State set a hearing to discuss this appeal on November 14, 2024, since postponed to April 10,
2025 due to the appellant’s indication that the AGCM might intervene, which could cause the interest in the
appeal of first instance to be extinguished.
On December 17, 2024, AGCM – accepting the claims of TIM and FiberCop – ruled to revoke the commitments
that were made binding by the Authority in Resolution no. 30002 of February 15, 2022 as part of these
proceedings.
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The Authority holds that, as of July 1, 2024. the antitrust concerns that existed under the initial hypothesis of
an agreement restricting competition have been extinguished following the unbundling of TIM’s fixed network
infrastructure.
Antitrust case I857
On July 6, 2021, AGCM (the Italian Competition Authority) started an investigation in regard to TIM and DAZN
for a possible understanding reached with a view to restricting competition in connection with the agreement
for the distribution and technological support for TV rights for Serie A football in the 2021-2024 period.
The investigation also aims to verify the restrictive nature of the understanding with reference to additional
elements regarding the possible adoption by TIM of technical solutions not available for competitor
telecommunications operators and which may effectively hinder the adoption of their own technological
solutions.
At the same time, the Authority has also initiated proceedings for the potential adoption of protective
measures.
By resolution passed on July 27, 2021, AGCM (the Italian Competition Authority) closed the interim proceedings,
considering that the initiatives and amendments to the agreement proposed by TIM and DAZN in the
meantime are presently able to prevent any serious and irreparable damage to competitors while
investigations are completed.
Indeed, said measures aim, as a whole, to avoid possible discrimination in the use of the DAZN service, due to
its activation by users using Internet connection services other than those offered by TIM. In addition, the
agreement between TIM and DAZN has been amended to guarantee DAZN complete freedom in applying
discounts and promotions. TIM has also undertaken to provide DAZN with a sufficient number of white label
set-top-boxes to also guarantee DAZN customers the viewing of matches over digital terrestrial TV, in the
event of connection problems.
Finally, TIM has undertaken to supply wholesale services to OAOs interested therein to manage traffic peaks
deriving from live data transmissions, regardless of the type of content transmitted.
On October 29, 2021 TIM submitted a proposal for undertakings to AGCM (the Italian Competition Authority)
with a view to resolving the competitive concerns that were the subject of the investigation and closing the
proceedings without the finding of any infringement and therefore without any sanction being applied.
On December 14, 2021, AGCM (the Italian Competition Authority) approved the publication of the
aforementioned proposal for undertakings on the Authority's website, as these undertakings, taken as a whole,
do not appear to be manifestly unfounded and are capable of removing the restrictions to competition
hypothesized in the measure initiating the investigation in question.
On January 5, 2022, with the publication on the AGCM (the Italian Competition Authority) website, market
testing began.
The deadline for rebuttal arguments and proposing any accessory amendments to the commitments
presented by TIM and DAZN is scheduled for March 7, 2022.
On February 23, 2022, TIM and DAZN were convened separately to the AGCM (the Italian Competition
Authority) offices. During the hearing, the Offices informed TIM – and thereafter confirmed this in the hearing
meetings – that in a hearing held on February 15, the Board deemed it necessary to make certain “accessory”
changes in order to approve the commitments submitted.
On March 4, 2022, TIM and DAZN requested an extension of the deadline for the submission of observations,
also in view of the new aspects that had emerged on February 23. The new deadline was set as March 23,
2022.
On March 22, 2022, TIM informed the Authority that the additional changes considered necessary by the Board
to approve the commitments would have entailed a complete overhaul of the contents and economic balance
of the agreements signed by TIM and DAZN, such as to make it no longer possible to pursue the hypothesized
business model. At the same time, TIM informed the Authority of the start of negotiations with DAZN possibly
concerning the revision of the distribution exclusivity clause, which was the main object of the Authority’s
investigation. Considering the complexity of negotiations, TIM requested an extension of another 30 days for
submission of observations. The extension was authorized and the new deadline set as April 23, 2022.
On April 20, 2022, in consideration of the extension of negotiations, also due to the complexity and economic
relevance of that being negotiated, DAZN and TIM requested an additional extension. The new deadline was
set as May 9, 2022.
On May 9, 2022, TIM informed the Authority that it had declared willing to DAZN to waive the exclusivity of the
distribution of Serie A football rights, as currently regulated by the Deal Memo, with DAZN consequently having
the faculty to distribute such rights also through third party operators and that, in exchange for the willingness
to waive this right, the Parties had begun negotiations for a review of the contracted economic commitment
envisaged by TIM.
On June 7, 2022, the Authority ruled on the rejection of the commitments submitted, which “would appear,
both where considered comprehensively and individually, to be unable to eliminate the anticompetitive
aspects identified in the resolution that started the proceedings, insofar as they do not resolve the competition
concerns highlighted in the initial proceedings, where not translated into shared contractual amendments
such as to eliminate the critical competition issues” highlighted by the Authority.
Again on June 7, 2022, the Authority ruled on the deferral of the deadline for the conclusion of proceedings to
March 31, 2023.
On August 2, 2022, TIM informed the Antitrust Authority that it had reached a new agreement with DAZN,
under which the latter has the faculty to distribute football rights through any third party, surpassing the
previous system of exclusivity in TIM’s favor.
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On January 20, 2023, notification was given of the investigation results (CRI).
AGCM (the Italian Competition Authority) believes that the agreement reached on January 27, 2021 (the “Deal
Memo”) had contents and resulted in effects that reduced competition for its entire duration (and therefore
until stipulation of the new agreement on August 3, 2022).
On January 31, 2023, AGCM (the Italian Competition Authority) resolved to extend the deadline for conclusion
of the proceedings until May 31, 2023.
TIM filed its statement of defense March 28, 2023, and the final hearing with the Authority was held on April 4,
2023.
On April 18, 2023, AGCM (the Italian Competition Authority) decided to again extend the deadline for the
conclusion of the proceedings to June 30, 2023, due to the complexity of the defence put forward by the
Parties in their pleadings.
On June 28, 2023, AGCM (the Italian Competition Authority) ruled that the conduct of TIM and DAZN
constitutes an agreement restricting competition in breach of Article 101 TFEU (the “AGCM Measure”).
Yet the arrangement – in particular regarding exclusivity – only lasted for approximately one month and its
potentially restrictive effects on competition were neutralized by the Authority’s timely initiation of the
investigation procedure on July 6, 2021.
Indeed, the precautionary sub-proceedings instigated at the start of the first football season of the three-year
period 2021-2024 actually prevented the effects of the arrangement from occurring, as at the beginning of
August 2021 TIM and DAZN discontinued the application of the disputed contractual clauses through their own
voluntary action. The original agreement was then replaced by a new contract, entered into in August 2022, in
which any exclusivity was completely eliminated, thus rooting out the antitrust concerns about exclusivity of
distribution.
Consequently, and in light of the mitigating circumstances recognized, AGCM (the Italian Competition
Authority) imposed a fine of 760,776.82 euros on TIM and a fine of 7,240,250.84 euros on DAZN.
On September 20, 2023, TIM paid the fine with reservations in view of the appeal brought by the Company with
the Lazio Regional Administrative Court against the decision against it.
On May 11, 2024, the Lazio Regional Administrative Court threw out the appeals of TIM and DAZN for the
annulment of the AGCM Measure and, without annulling the AGCM Measure (which will therefore continue in
effect until any amendment by the AGCM itself), declared that the AGCM (the Italian Competition Authority)
has a duty to resume the measure in accordance with the Lazio Regional Administrative Court's ruling.
In a nutshell, the Lazio Regional Administrative Court has valued the following reason, which is common to the
appeals of both Sky and Fastweb: According to the CRI, the prohibited agreement had market effects from
January 27, 2021 to August 4, 2022, whereas the AGCM Measure reduced the duration of the violation from
July 1, 2021 – when the marketing of the rights under Deal Memo commenced – up to the implementation of
voluntary measures adopted by TIM and DAZN as part of the precautionary sub-proceedings at the beginning
of August 2021. Therefore, the AGCM Measure appeared to contradict the investigation results (CRI), with the
Board having failed to adequately justified its decision to depart from the preliminary findings. At this point,
AGCM (the Italian Competition Authority) could reopen the investigation or appeal against the ruling of the
Lazio Regional Administrative Court. The TIM are considering its options for taking action against the ruling of
the Lazio Regional Administrative Court, which could include an appeal. TIM has decided to proceed with the
appeal, which has been served on all parties involved. By order published on October 4, 2024, the Council of
State rejected TIM’s petition to stay the proceedings. The hearing on the merits is awaiting scheduling.
On November 12, 2024, following Judgment no. 09315/2024 of the Regional Administrative Tribunal rendered
on May 11 which found that the initial decision of the AGCM was lacking in grounds, the Authority ruled to
initiate proceedings under Article 14 of Law no. 287/1990 (I857C) with the aim of redetermining the duration of
the infringement referred to in the I857 proceedings.
The proceedings must be completed by June 30, 2025.
Wind Tre S.p.A. – I857
By writ of summons brought before the Court of Milan and served in January 2024, operator Wind Tre S.p.A.
requested that TIM S.p.A. and DAZN limited be ordered to compensate, jointly and severally, Wind Tre S.p.A.
for the damage allegedly suffered by it as a result of the defendants' alleged violation of art. 102 of the TFEU
(abuse of a dominant position) due to having signed a mutual agreement in January 2021 (the “Deal Memo”)
which – in the claimant's opinion – would result in damage quantifiable in 69,803,012.00 euros.
In addition, Wind Tre S.p.A. is requesting that TIM S.p.A. be ordered to pay 10,266,377.00 euros in compensation
for the damage allegedly resulting from advertising campaigns which were intended, according to the
claimant, to suggest to customers that subscribing to TIM's FTTH service, or subscribing to TIMVISION's offer,
was the only way to access DAZN service content.
On April 29, 2024, TIM entered an appearance and counterclaim in which it called for Wind's claims to be
thrown out and for the proceedings to be suspended pending the Lazio Regional Administrative Court’s ruling
on TIM and DAZN’s application to annul the measure adopted by AGCM (the Italian Antitrust Authority) on
June 28, 2023 (in which AGCM resolved that the conduct of TIM and DAZN in signing the Deal Memo
constituted an agreement restricting competition). The preliminary hearing was initially scheduled for July 8,
2024, but has since been moved to March 11, 2025. In an Order dated February 28, 2025, the Court of Milan ex
officio ordered that the first hearing be further moved to September 10, 2025.
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Antitrust case I874
On December 17, 2024 AGCM ruled to initiate a preliminary investigation proceeding to assess the possible
anti-competitiveness of certain clauses contained in the current Master Service Agreement between TIM and
FiberCop regulating the relations between those entities following the transfer of fixed network activities from
TIM to FiberCop.
The proceedings must be concluded by January 31, 2026.
Universal Service
In a decision published in July 2015, the Council of State rejected the appeal lodged by AGCom and TIM against
the judgment of the Lazio Administrative Court (TAR) on the financing of the universal service obligations for
the period 1999–2003. With this judgment the judge had granted the appeals by Vodafone, annulling AGCom
decisions 106, 107, 109/11/CONS on the renewal of the related proceedings, which included Vodafone among
the subjects required to contribute, for a sum of approximately 38 million euros. Essentially, the judgment
confirms that the Authority has not demonstrated the particular degree of "replaceability" between fixed and
mobile telephony for mobile operators to be included among the subjects required to repay the cost of the
universal service, which means that AGCom needs to issue a new ruling. TIM has filed an application with
AGCom to renew the proceedings, and an appeal against the judgment of the Court of Appeal to the Court of
Cassation (which subsequently ruled that the appeal was inadmissible).
In April 2016 Vodafone appealed against the Ministry of Economic Development (MISE) and TIM to the Council
of State, for non-compliance with the judgment of the Council of State. This appeal referred to AGCom
decision 109/11/CONS (2003 yearly payment, on the basis of which Vodafone had paid the sum of
approximately 9 million euros as contribution, restitution of which was requested).
In its judgment of November 2016, the Council of State rejected the appeal, referring to the Regional
Administrative Court (TAR) the decision on the methods of compliance. In February 2017, Vodafone presented
the Lazio Regional Administrative Court with four new appeals against the Ministry of Economic Development
and TIM regarding observance of the ruling, upheld on appeal, countermanding the resolutions for the years
1999–2003 and repayment of the aforesaid amounts of around 38 million euros already paid to the Ministry of
Economic Development as a contribution.
With a judgment issued in June 2018, the TAR rejected all of Vodafone's appeals for observance, and, as
requested by TIM, expressly affirmed that AGCom must renew the proceedings, particularly with regard to the
determination of the degree of replaceability between fixed and mobile telephony. Vodafone challenged the
four judgments before the Council of State, which, with a decision of October 2019, upheld Vodafone's appeal
and confirmed the restitutory obligation of the sums in question applicable to TIM.
With resolution no. 263/20/CIR, AGCom started proceedings to renew the investigation into the iniquity of the
net cost of the universal service for 1999-2009 and the allocation of contribution expenses. Vodafone has
challenged this resolution before the Regional Administrative Court. The renewal proceedings concluded with
resolution 18/21/CIR, which substantively confirmed the draft order. This same resolution has only been
challenged before the regional administrative court by TIM for the years 1999 and 2000, while Vodafone, Wind
and Fastweb have challenged the resolution for all years concerned with opposite grounds. By judgments
published in February 2022, resolution 18/21/CIR was partially canceled; indeed, the regional administrative
court has rejected the main complaint reporting the lack of power of renovation and upheld only the grounds
hinged on the alleged unreasonable nature of the threshold envisaged by AGCom for the analysis of iniquity
second facie. Fastweb, Vodafone, Wind, AGCom and TIM appealed the judgment of the Regional
Administrative Court with the Council of State; The hearings on the merits were set for April 4 and April 27,
2023. At the end of the hearing on April 4, 2023, the case was reserved for judgment. On April 18, 2023, the
Council of Ministers issued a collegial order referring several issues to the EU Court of Justice for a preliminary
ruling.
The EU Court of Justice, in a ruling published on September 19, 2024, upheld the arguments of TIM's defense
and rejected Vodafone's arguments, ruling that: (i) proof of a certain degree of fixed/mobile substitutability is
not required for mobile operators to participate in the unfair burden sharing mechanism; (ii) it is up to Member
States to establish the criteria for assessing burden unfairness. The hearing on the cases stayed in the Council
of State pending the decision of the Court of Justice has been set for May 8, 2025.
Dispute relating to “Adjustments on license fees” for the years
1994-1998
With regard to the judgments sought in previous years concerning the Ministry of Communications' request for
payment of the balance of the amounts paid in concession charges for the years 1994-1998 (for a total of 113
million euros), the Lazio Regional Administrative Court (TAR) rejected the Company’s appeal against the
request for adjustment of the license fee for 1994 in the amount of approximately 11 million euros, 9 million
euros of which against turnover not received due to bad debts. TIM lodged an appeal. On the outcome of
proceedings, with the ruling of December 2019, the Council of State partially accepted TIM's position,
establishing the principle, according to which, the receivables referring to 1994 not collected for reasons not
attributable to the operator, could have been deducted from the tax base for calculating the concession fee. As
the Ministry of Economic Development has not followed up on TIM’s requests aimed at obtaining fulfillment of
the judgment, TIM has submitted a further petition to the Council of State for failure to execute the judgment,
but with judgment given in April 2022, the request for compliance brought by TIM was rejected. TIM appealed
for revocation of this judgment to the Council of State. This appeal was declared inadmissible in judgment
3318/2023.
With two further judgments the Lazio Regional Administrative Court (TAR), reiterating the reasons expressed
previously, also rejected the appeals in which the Company challenged the requests for payment of
outstanding balances of license fees for the years 1995 and 1996-1997-1998, in the amount of approximately
46 million euros. TIM has appealed before the Council of State also against these judgments. By judgment
published in April 2022, the Council of State stressed the principles already set for 1994, namely that
receivables that have become uncollectable for reasons not the fault of the operator, correctly handled in the
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accounts, on the financial statements and in terms of tax, can be deducted from the tax base for calculating
the concession fee.
With reference to the 1998 fee adjustment (equal to about 41 million euros), the Lazio TAR, by TAR order of
December 2018, suspended the judgment, raising preliminary questions with the EU Court of Justice on the
correct scope of EC Directive no. 97/13 (in the matter of general authorizations and individual licenses in the
field of telecommunications services on the basis of the currently pending litigation on the 1998 license fee,
currently pending before the Rome Court of Appeal and illustrated in a subsequent paragraph).
The referred questions were based, inter alia, on the question posed to the Court of Justice on the possible
conflict between the aforementioned EC Directive 97/13 and national law, which extended the obligation for
telecommunications license-holders to pay the license fee for 1998 (commensurate with a portion of turnover),
despite the liberalization process underway. In its judgment of March 2020, the EU Court of Justice held that
the EU regulatory system must be interpreted as not allowing national legislation to extend to 1998 the
obligation imposed on a telecommunications undertaking that was previously the concession holder (such as
TIM) to pay a fee calculated on the basis of turnover and not only the administrative costs connected with the
granting, management, control and implementation of the general authorizations and individual licenses
scheme. The Court held, inter alia, that the Council of State – having held in its judgment 7506/2009 that the
fee imposed for 1998 on TIM, the holder of an authorization existing on the date of entry into force of Directive
97/13, was due – interpreted national law in a way that was incompatible with EU law, as interpreted by the
Court in its judgment of February 21, 2008. Following the judgment of the EU Court of Justice, the opinion on
the final calculation of the 1998 charges was summarized before the Lazio Regional Administrative Court,
which, in a judgment given last February, declared TIM’s appeal as unacceptable for procedural reasons,
namely due to the prevalence of the formal ruling consisting of judgment no. 7506/09; in substantive terms, on
the other hand, the judgment of the EU Court of Justice once again ascertained the European Community
unlawful nature of the credit claim by the Public Administration to obtain payment of the 1998 charges and,
consequently, the final balance. The company has challenged the judgment of the Lazio Regional
Administrative Court to the Council of State.
The Council of State, following the public hearing of December 4, 2024, reserved judgment until after the ruling
on the application brought in the Court of Cassation by the Presidency of the Council of Ministers to annul the
ruling of the Rome Court of Appeals upholding TIM’s claim (in relation to the 1998 concession fee).
Brazil - Opportunity arbitration
In May 2012, TIM and Telecom Italia International N.V. (now merged in Telecom Italia Finance) were served
with a notice of arbitration proceedings brought by the Opportunity group, claiming compensation for
damages allegedly suffered for presumed breach of a settlement agreement signed in 2005. Based on the
claimant’s allegations, the damages relate to circumstances that emerged in the criminal proceedings pending
before the Milan Court regarding, inter alia, unlawful activities engaged in by former employees of TIM.
The investigatory phase having been completed, the hearing for oral discussion took place in November 2014,
after which the parties filed their concluding arguments in preparation for the decision on the case.
In September 2015, the Board of Arbitration declared the proceedings closed, as the award was going to be
filed.
In September 2016 the ICC Court notified the parties of its judgment, based on which the Court of Arbitration
rejected all the claims made by the Opportunity group and decided that the legal costs, administrative costs
and costs for expert witnesses should be split between the parties (the “2016 Arbitration Award”).
In April 2017 the Opportunity group filed an appeal against the 2016 Arbitration Award before the Paris Court of
Appeal.
In November 2017, TIM and Telecom Italia Finance received from the Secretariat of the ICC’s International
Court of Arbitration notice of a Request for Revision of the 2016 Arbitration Award, filed by the Opportunity
group, asking for a new award. A Board of Arbitration was subsequently established.
In October 2018, TIM and Telecom Italia Finance requested proceedings with the Paris Court of Appeal to be
suspended, in the light of proceedings pending with the Court of Arbitration of the International Chamber of
Commerce to review the same 2016 Arbitration Award. In November 2018, the Paris Court of Appeal
suspended the proceedings until the decision is taken by the Court of Arbitration in the review proceedings.
As regards the proceedings to review the 2016 Arbitration Award, in October 2019 the ICC held the discussion
hearing in Paris. In August 2020, the Arbitration Court issued the award rejecting the Request for Revision
presented by the Opportunity Group (the “2020 Arbitration Award”). In December 2020, the Opportunity group
filed an appeal against the 2020 Arbitration Award before the Paris Court of Appeal. In May 2021 the
Opportunity group asked the Paris Court of Appeal to summarize the proceedings brought against the 2016
Arbitration Award. Thereafter, the Opportunity Group, TIM and Telecom Italia Finance filed their briefs in the
two proceedings pending before the Paris Court of Appeal, respectively against the 2016 Award and the 2020
Award. On January 8, 2024, both appeal proceedings were heard before the Paris Court of Appeal.
In its decision of May 2, 2024, the Paris Court of Appeal quashed the 2016 Arbitration Award on the grounds
that the Court considered one of the members sitting on the arbitration panel to be affected by a conflict of
interest. In a separate decision issued on the same date, the Court ordered the reopening of the proceedings
on the 2020 Arbitration Award.
On June 20, 2024, TIM and Telecom Italia Finance lodged an appealed with the Court of Cassation against the
judgment quashing the 2016 Arbitration Award.
On June 24, 2024, observations were submitted on the consequences that the quashing of the 2016 Arbitration
Award may have in relation to the appeal against the 2020 Arbitration Award. Proceedings are still pending.
On September 3, 2024, the Paris Court of Appeal rejected Opportunity’s petition to set aside the 2020 Award
following the annulment of the 2016 Award. The proceedings have therefore been stayed until the outcome of
the case initiated in the Court of Cassation, with the 2020 Award remaining in effect.
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On December 19, 2024, TIM and Telecom Italia Finance filed a statement of defense in the proceedings before
the Supreme Court, aimed at overturning the decision of the Paris Court of Appeals to quash the 2016
Arbitration Award.
Iliad (winback)
By writ of summons served during the first quarter of 2020, Iliad Italia S.p.A. sued TIM before the Court of Milan
for alleged anti-competitive conduct, including through the Kena Mobile brand, which was allegedly aimed at
hindering its entry to and consolidation in the mobile phone market in Italy, seeking damages of at least 71.4
million euros.
TIM filed an appearance, fully disputing the requests of Iliad Italia S.p.A.; and, in turn, submitting a
counterclaim in accordance with Art. 2598 of the Italian Civil Code, with reference to the denigration
implemented by Iliad Italia S.p.A. in regard to TIM and formulating a symmetrical claim for damages. In the
first preliminary brief, Iliad updated its claim for damages, taking it to 242.8 million euros, and later to 292.8
million euros.
The proceedings ended in a judgment of September 25, 2023, which did not award Iliad any damages; TIM's
counterclaim was declared inadmissible.
In its notice of appeal served on December 15, 2023, Iliad requested that the first-instance judgment be
partially overturned, requesting, among other things, that TIM be ordered to pay full compensation of not less
than 292.8 million euros for the pecuniary and non-pecuniary damage suffered by Iliad.
On April 17, 2024, TIM entered an appearance in court and lodged a counterappeal. At the hearing of May 8,
2024, the Judge reserved the right to decide on the preliminary applications. The Judge, in an order of May 29,
2024 rendering the judgment that had been reserved at the hearing of May 8, 2024, having found that the
appellant in its appeal had once again offered as evidence part of the documents offered in the first instance
solely on a USB stick and that said USB stick could still not be consulted in that it was protected by a password
that had not been communicated, ruled that the password must be obtained and the USB stick accessed as a
result in the adversarial proceedings between the parties, thus postponing the hearing of the parties until
September 11, 2024. At the hearing of September 11, 2024, the Judge reserved the right to decide on the
preliminary requests.
In an order of October 14, 2024, a hearing was set for April 30, 2025 for case to be remitted for decision.
Iliad (restrictions on duration and termination costs)
By writ of summons notified in September 2021, Iliad Italia S.p.A. summonsed TIM before the Court of Milan for
the alleged application to customers of unlawful contractual conditions in terms of time limits and economic
costs for withdrawal with reference to mobile and fixed telephone offers, with a consequent petition to order
TIM to compensate damages, currently quantified as 120.4 million euros.
The hearing for closing arguments, originally set for May 28, 2024, was postponed to June 10, 2025.
Fastweb (Ethernet ATM migration)
By writ of summons notified in December 2021, TIM summonsed Fastweb before the Court of Milan, asking
that it be ascertained and declared that Fastweb had not achieved the minimum objectives of migration from
ATM bitstream technology to Ethernet bitstream technology in any of the 30 Collection Areas into which the
national territory is divided by the deadline envisaged by industry regulation and the migration plan agreed by
the parties; and therefore that it ascertain and declare that TIM is entitled to: (a) reverse the economic benefits
relating to this migration granted retroactively from April 12, 2016 to Fastweb and (b) obtain from Fastweb the
prices for the ATM bandwidth envisaged by the contract stipulated by the parties and the current Reference
Offers in force ratione temporis; (c) therefore declare and order Fastweb to pay TIM the total amount of
79,240,329.47 euros (or other amount, potentially greater, as may be assessed during the course of
proceedings).
Fastweb filed an appearance and submitted a counterclaim for abuse of a dominant market position and
breach of contract. Fastweb’s application is essentially based on alleged delays in the development of Ethernet
coverage. The counterparty complains of damages of around 81.4 million euros. Having noted that the
counterclaim made by Fastweb would appear to go beyond the profile of breach of contract and that, in this
case, the specialized business chambers may be competent to judge the matter, the investigating judge has
returned the case to the Chambers President for due consideration. The Chambers President has submitted
the case to the President of the specialized business chambers. The first hearing was held on December 14,
2022. The hearing for the admission of the preliminary motions has been postponed to June 13, 2023.
Subsequent to the filing of the preliminary motions, Fastweb re-quantified damage allegedly suffered as a
result of TIM's unlawful conduct at approximately 101.1 million euros (of which 13.2 million euros is subject to
the acceptance of TIM's main claim).
At the hearing of June 13, 2023, the investigating judge reserved judgment. To dissolve this reservation, the G.I.
ordered an expert report to be prepared by a court-appointed expert, who was to be appointed and sworn in
on November 21, 2023. The public hearing for the examination of the court-appointed expert witness has been
scheduled for June 17, 2025.
Iliad (INWIT)
By writ of summons served in July 2022, Iliad Italia S.p.A. summonsed Telecom, Vodafone and Infrastrutture
Wireless Italiane S.p.A. (“INWIT”) before the Court of Milan to assess the alleged unlawful conduct of INWIT,
Telecom and Vodafone, consisting of refusal to allow Iliad to upgrade its mobile telephone transmission
systems installed on INWIT-owned infrastructures. As a result of this conduct, Iliad has asked that Telecom be
ordered, together with INWIT and Vodafone, to compensate the damages allegedly suffered, which it has
reserved the right to quantify during the course of proceedings. The initial hearing took place on April 5, 2023,
with the Judge reserving judgment on the objection as to the invalidity of the writ of summons brought by TIM.
The initial hearing was deferred to October 11, 2023, following the admittance of the objection as to the
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invalidity of the writ of summons brought by TIM. At the hearing, the Judge set three dates for the exchange of
pleadings between the parties: November 10, 2023, December 11, 2023, and January 2, 2024. At the end of the
hearing of September 24, 2024 concerning the admission of evidence, the Judge adjourned the discussion of
the same to the hearing on January 21, 2025.
VAS (Value Added Services) - Seizure by the Public Prosecutor’s Office
of Milan
On April 24, 2024, the hearing was heard before the Court of Review of Milan. The Court of Review was called
upon to rule on the appeal lodged by TIM against the seizure order made against it by the investigating judge
of the Court of Milan.
After hearing the case, the Court of Review upheld the appeal, entering a decision on April 26, 2024 which:
■
ordered the seizure order for 248,941,282.30 euros against TIM to be quashed; and
■
ordered everything previously seized from TIM to be returned.
In particular, the events that led to the seizure by the Milan Public Prosecutor’s Office are summarized below.
On February 29, 2024, TIM had been notified of a seizure order issued on February 8, 2024 by the Judge for
Preliminary Investigations of Milan, which had ordered the preventive seizure of the sums held in the current
accounts in the Company's name, for a total amount of 248,941,282.30 euros.
The measure concerned an alleged computer fraud (Article 640-ter of the Criminal Code) in the field of the so-
called “VAS” (i.e. Value Added Services) provided by third-party companies called CSPs (i.e. “Content Service
Provider”).
TIM is not under investigation in the proceedings in question, and that the offence in dispute is not among
those that, pursuant to Legislative Decree no. 231 of 2001, could theoretically constitute a prerequisite for
administrative offences, attributable to the Company.
With specific reference to TIM, evidence of a possible fraudulent phenomenon in the sector emerged only in
2019, due to the significant number of disavowals of VAS services recorded in that year.
During that period, the Company reported these events to the Public Prosecutor's Office of Rome, in whose
proceedings, currently being dismissed, the Company's role as a victim of the crime was confirmed.
In addition, the Company promptly carried out all the necessary actions aimed at neutralizing the
phenomenon of illicit activations of VAS services.
(b) Other information
TIM S.A. - Arbitration proceedings no. 28/2021/SEC8
In March 2020, TIM S.A.'s Brazilian subsidiary TIM S.A. signed a partnership with Banco C6 S.A. and, in April
2020, launched exclusive offers for TIM S.A. customers opening C6 bank accounts. As compensation, TIM S.A.
receives commission for each account activated, as well as the option to obtain an equity stake in Banco C6
upon achieving certain targets connected to the number of active accounts. The number of shares received for
each target achieved was variable over the contract term, with the initial percentages being more
advantageous for TIM S.A. due to the greater effort required for a new digital company to take off.
Despite the project’s success, some differences between the partners resulted in arbitration proceedings no.
28/2021/SEC8 being filed with the Arbitration and Mediation Center of the Brazil-Canada Chamber of
Commerce in 2021.
On February 11, 2025, TIM S.A. and Banco C6 S.A. entered into an agreement to end all disputes related to the
partnership between the two Companies and, as a result, to resolve the four arbitration proceedings currently
pending.
During the lifetime of the partnership, TIM S.A. had acquired a minority interest in the bank (equal to 6.06%, of
which 4.62%held in the form of underwriting options (derivatives) and 1.44% as an equity stake in Banco C6
S.A.
The agreement signed provides for the termination of the partnership, as well as the transfer of all shares held
by TIM S.A. in Banco C6 S.A., as well as all outstanding subscription options, for an amount of 520 million
Brazilian reais (before taxes). The transfer of shares and options is subject to the approval of the Cayman
Islands Monetary Authority (CIMA). Once this approval is obtained, the agreement will be concluded and the
partnership will end.
Vivendi S.E.
On December 15, 2023, TIM S.p.A. was served an ordinary writ of summons from the shareholder Vivendi,
contesting the legitimacy of the board resolution of November 5, 2023 approving the sale of TIM’s fixed
network assets and the investments held in FiberCop S.p.A. and Telenergia S.r.l. (“NetCo”) by Optics BidCo
S.p.A. (a subsidiary of KKR). Vivendi did not make any application for precautionary injunction, nor did it
request an urgent halt to executing the resolution and the consequent negotiations. The Company appeared in
the proceedings to contest the merits of the arguments and requests made by Vivendi, confirming the
legitimacy of the resolutions adopted by the Board of Directors and the agreements signed with Optics BidCo.
The Court of Milan, in its ruling of January 14, 2025, declared the application brought by Vivendi to be
inadmissible due to a lack of interest in the action and a lack of standing, and ordered the plaintiff to pay TIM
costs of approximately 40,000 euros.
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Dispute concerning the license fees for 1998
TIM has summoned the Prime Minister’s Office to appear in a civil suit for compensation for damages caused
by the Italian State through appeal ruling 7506/09, handed down by the Council of State in breach, in the view
of the Company, of Community law.
The main claim which the proceedings are founded on is based on community jurisprudence that recognizes
the right to assert the responsibility of the State in relation to violation of rights recognized in community law
and injured by a judgment that has become definitive, in respect of which no other remedy may be applied.
The judgment of the Council of State definitively denied TIM the right to obtain restitution of the concession
charge for 1998 (totaling 386 million euros for Telecom Italia and 143 million euros for the former TIM
Company, plus interest), already denied by the Lazio regional administrative court despite the favorable and
binding opinion of the European Court of Justice in February 2008. This judgment concerned the conflict
between EC Directive 97/13 on general authorizations and individual licenses in the telecommunications
services industry, and the national regulations that had deferred, for 1998, the obligation to pay the fee
payable by telecommunications concession holders, despite the intervening deregulation process. The
Company then proposed an alternative compensation claim, within the sphere of the same proceedings, for
tort pursuant to art. 2043 of the Italian Civil Code. The compensation claimed has been quantified as
approximately 529 million euros, plus legal interest and revaluation. The Avvocatura di Stato filed an
appearance and submitted a counterclaim for the same sum. The case is subject to eligibility analysis by the
Court, which declared the inadmissibility of TIM's main claim (case for damages for manifest breach of
community law pursuant to law 117/88). However, this decision was amended in favor of the Company on
appeal. In March 2015 the Rome Court issued its judgment in the first instance, declaring the Company's
application inadmissible.
In 2015, TIM has appealed the decision, and the case is now pending the hearing specifying the nature of the
forms of order sought. The Court of Appeal has scheduled the hearing for closing arguments for April 2, 2019.
Thereafter, without any new procedural activities having taken place, the Court of Appeal incontrovertibly
deferred the hearing for closing arguments first to 2020 and then to 2021 (from when the terms for conclusion
and replies shall run, which will be followed shortly thereafter by the issue of the judgment). These deferrals
were followed by the latest, of January 15, 2021, scheduling the new hearing for January 25, 2022.
On the matters underlying the case, the following must be noted:
■
on the considered lack of jurisdiction of the Court of Rome (concerned by the judgment of the Court of
Rome appealed by TIM) to judge the liability of the Italian government for the work of senior magistrates
(in the case in point, the Council of State), which would have led to the declared inadmissibility of the claim
in accordance with Art. 5, law no. 117/1978 (old text) - the United Chambers of the Court of Cassation ruled
with judgment no. 14842 on June 7, 2018, confirming the jurisdiction of the Court of Rome and, therefore,
the correctness of TIM’s choice to base its lawsuit in the Court of Rome;
■
on the unlawful nature of the conduct of the Italian government – and, therefore, on the liability of the
State-Court in accordance with Law no. 117/1998 – once again, the EU Court of Justice has ruled, deciding
on the prejudicial matter raised by the Lazio TAR in other, connected proceedings, in its judgment given on
March 4, 2020 in C-34/19, stressing that TIM was not required to pay the charges demanded by the State
for 1998 and, therefore, confirming the clear violation by the Council of State of European Community law
(also because in clear conflict with the decision already given by the EU Court of Justice on February 21,
2008 in C-296/06, as, moreover, already ruled by the Court of Appeal of Rome, Chambers I, in Decree of
January 31, 2012, which sanctioned the procedural admissibility of TIM’s lawsuit);
■
on the matter of the right to repeat the charges paid for 1998 - the Court of Cassation ruled in its judgment
no. 18603 given on September 7, 2020, rejecting the appeal brought by the Presidency of the Council
against the judgment whereby the Court of Appeal of Rome had upheld the claim for compensation made
by Vodafone (payment of charges for 1998) for the same title in separate proceedings.
In short, the company paid the charges disputed in 1998; it promptly challenged the administrative provision
that had unfairly required said payment, before the administrative court; the administrative proceedings
before the Council of State concluded negatively in 2009 (despite the recalled opposite judgment of the
European Court of Justice); the civil proceedings of first instance concluded in March 2015 with a judgment of
rejection for grounds of admissibility (then solved in the sense indicated by the company with the referenced
judgment of Cassation in United Chambers no. 14842/18) and for more than 6 years after the first instance
judgment – going from deferral to deferral - the appeal judgment was not issued.
The company examined the various scenarios and legal claims (national, European Community, etc.) that may
contribute towards defining the appeal dispute. It is considered, in fact, that the principles of the reasonable
duration of the trial, in accordance with subsection 2 of article 111 of the Constitution and in accordance with
article 6 of the European Convention on Human Rights, are violated by these events, considering: (i) the year in
which payment was made of the undue charges is 1998; (ii) the value of these charges is approximately 529
million euros plus interest from that date; (iii) the very long trial process that did not lead to an appeal ruling
for years (the initiation of which is from the year 2015); (iv) the circumstance that the legal matter appears to
be readily able to be settled, as not one but two judgments have already been given by the EU Court of Justice
declaring payment of the charges to be incompatible with European Community legislation (judgments that
have currently been ignored by the national court).
As part of these analyses aimed at deciding the appeal, on January 25, 2021 the company filed a request with
the Court of Appeal in Rome to bring forward the hearing (postponed as mentioned to January 25, 2022). This
is to avoid the umpteenth adjournment of the case, which concerns the failure to comply with two inter-partes
decisions rendered in the matter by the EU Court of Justice for a manifest violation of European law by the
State-Judge. With a ruling on February 8, 2021, the Rome Court of Appeal (second section specializing in
corporate matters) deemed it could grant the request for an advance ruling, setting the hearing for November
30, 2021. On that date the case was taken to decision with the assignment of the legal terms for closing
statements and replies. By order of February 22, 2022, having acknowledged that one of its members had
chosen to abstain, the Board re-submitted the case, arranging for the deeds to be sent onto the President of
the Court of Appeal. On March 4, 2022, the case was reassigned to another judge. By judgment of March 31,
2022, the Board scheduled the hearing for December 1, 2022 for closing arguments. The Board deferred the
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case to the hearing of January 19, 2023 for verbal discussion. Following the request made by the State
advocacy, the case was again deferred until March 9, 2023. At the hearing on December 13, 2023, the Board
granted the parties time to submit their closing statements and replies.
In its judgment no. 2320/2024 entered on April 3, 2024, the Court of Appeal of Rome upheld the claim brought
by the Company, thus overturning the judgment against TIM and ordering the Presidency of the Council of
Ministers to pay 528,711,476 euros, adjusted for inflation and plus the statutory interest accrued since the date
the appeal was files, with costs awarded to the Company in the amount of 550,000.00 euros plus ancillary
charges.
On October 14, 2024, the Presidency of the Council of Ministers served notice of the appeal to the Court of
Cassation. On November 19, 2024, the Presidency of the Council of Ministers filed a motion to stay the ruling in
the Rome Court of Appeals, which, at a hearing held on December 16, 2024, postponed the hearing to January
20, 2025. The Court of Appeals, in its order published on January 22, 2025, rejected the application of the
Presidency of the Council of Ministers for an injunction against the enforceable effects of the Court of Appeals’
ruling. The public hearing of the Presidency of the Council appeal before the Supreme Court has been set for
May 27, 2025.
Other assets/liabilities related to the sale of assets and shareholdings
As part of agreements for the sale of assets and companies, the TIM Group has undertaken guarantees to
indemnify the buyers for liabilities mainly connected with legal, tax, social security, and labor law issues, for an
amount normally set as a percentage of the purchase price.
Against the aforementioned contingent liabilities, for only those cases in which an outlay of resources was
deemed probable, a corresponding provision was made for risks.
It should also be noted that under some asset and/or equity sale contracts signed by the TIM Group, there are
usual post-closing price adjustment mechanisms as well as earn-out mechanisms in favor of TIM.
(c) Commitments and guarantees
Guarantees, net of back-to-back guarantees received, amounted to 559 million euros.
The guarantees provided by third parties to Group companies, amounting to 6,788 million euros, mainly related
to guarantees provided by banks and financial institutions as a guarantee of the proper performance of
contractual obligations and related to insurance guarantees.
In particular, we report:
■
the insurance guarantees of the Domestic Business Unit, which totaled 1,513 million euros, mainly refer to
guarantee financing by the TIM Group in applying legal provisions for contracts of Public Administrations
and similar bodies;
■
the insurance guarantees of the Brazil Business Unit, which totaled 2,998 million euros, mainly refer to
surety bonds provided primarily for litigation and for telecommunications services using 4G and 5G
technology;
■
the TIM Group had bank guarantees issued in favor of INPS in support of the application – by TIM and some
Group companies – of Article 4 of Italian Law 92 of June 28, 2012 and Article 41, paragraph 5-bis of Italian
Legislative Decree 148/2015 or the voluntary redundancy of employees meeting the requirements; the
total amount of those bank guarantees issued is 1,119 million euros, including 1,053 million euros for TIM
S.p.A. and 65 million euros for Group companies; with reference to the bank guarantees issued in favor of
INPS for which financial assets have been pledged, reference should be made to Note 9 “Non-current and
current financial assets”.
Lastly, in May 2018, TIM obtained a surety in favor of the Prime Minister’s Office for 74 million euros to secure
an appeal to the Lazio Administration Court for a provisional stay of the administrative fine levied on TIM
following the preliminary investigation connected with the penalty proceeding initiated under Article 2 of
Decree Law 21 of 3/15/2012 (the “Golden Power” law).
The loan guarantees are described in the Note 16 “Non-current and current financial liabilities”.
TIM Group Consolidated
Financial Statements
Note 25
Disputes and pending legal actions, other
information, commitments and guarantees
373
NOTE 26
REVENUES
This item rose by 131 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Equipment sales
997
1,030
Services
13,445
13,281
Total
14,442
14,311
Revenues from telecommunications services are presented gross of amounts due to other TLC operators,
equal to 1,109 million euros (1,173 million euros in 2023), included in Costs of services.
Revenues from services in 2024 include revenues for voice and data services on fixed and mobile networks for
Retail customers for 8,228 million euros and for other Wholesale operators for 1,117 million euros.
For a breakdown of revenues by operating segment/geographical area, reference should be made to the Note
39“Segment Reporting”.
NOTE 27
OTHER INCOME
This item rose by 92 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Late payment fees charged for telephone services
37
37
Recovery of employee benefit expenses, purchases and services rendered
17
11
Capital and operating grants
16
17
Damages, penalties and recoveries connected with litigation
7
24
Estimate revisions and other adjustments
96
40
Income for special training activities
1
2
Services related to the MSA in place with FiberCop S.p.A.
42
—
Other
17
10
Total
233
141
The increase from 2023 is mainly related to:
■
income from the Master Service Agreement signed by the Parent Company TIM S.p.A. with FiberCop S.p.A.
as of July 1, 2024 (42 million euros);
■
the increase of 56 million euros in estimate revisions and other adjustments of the Parent Company,
mainly related to the repayment of part of the penalty pertaining to the A514 proceeding, as per the
November 13, 2024 Council of State ruling.
TIM Group Consolidated
Financial Statements
Note 26
Revenues
374
NOTE 28
ACQUISITION OF GOODS AND SERVICES
This item rose by 572 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Purchase of raw materials and goods
(a)
974
1,046
Costs of services:
Revenues due to other TLC operators
1,109
1,173
Costs for telecommunications network access services
151
121
Commissions, sales commissions and other selling expenses
1,481
1,450
Advertising and promotion expenses
234
233
Professional and consulting services
214
253
Utilities
337
234
Maintenance costs
310
217
Outsourcing costs for other services
376
385
Mailing and delivery expenses for telephone bills, directories and other
materials to customers
30
32
Other service expenses
1,734
1,371
(b)
5,976
5,469
Lease and rental costs:
Rent and leases
91
84
TLC circuit subscription charges
186
187
Other lease and rental costs
790
659
(c)
1,067
930
Total
(a+b+c)
8,017
7,445
Lease and rental costs include lease payments related to short-term or modest-value contracts of about 11
million euros in 2024 (about 9 million euros in 2023).
The item Other service expenses basically refers to the Parent Company TIM S.p.A and mainly includes network
access charges and hosting fees related to radio base stations.
NOTE 29
EMPLOYEE BENEFITS EXPENSES
This item decreased by 472 million euros compared to 2023. The breakdown is as follows:
(million euros)
2024
2023
Ordinary employee expenses
Wages and salaries
931
1,011
Social security expenses
332
357
Other employee benefits
140
118
(a)
1,403
1,486
Costs and provisions for agency contract work
(b)
1
1
Miscellaneous expenses for employees and other labor-related services rendered
Expenses for corporate restructuring and termination benefit incentives
72
462
Other
2
1
(c)
74
463
Total
(a+b+c)
1,478
1,950
Employee benefits expenses mainly related to the Domestic Business Unit for 1,145 million euros (1,612 million
euros in 2023) and to the Brazil Business Unit for 331 million euros (338 million euros in 2023).
“Expenses for corporate restructuring and termination benefit incentives” totaled 72 million euros (462 million
euros in 2023) and are mainly related to wage supplementation related to Solidarity Agreements and
individual redundancy plans, as stipulated in the labor union agreement signed by the Parent Company with
the trade unions on April 12, 2024.
The average salaried workforce, including agency contract workers, stood at 23,752 employees in 2024 (25,098
in 2023). A breakdown by category is as follows:
TIM Group Consolidated
Financial Statements
Note 28
Acquisition of goods and services
375
(number of units)
2024
2023
Executives
374
418
Middle Managers
3,049
2,895
White collars
20,311
21,667
Blue collars
—
87
Employees on payroll
23,734
25,067
Agency contract workers
18
31
Total average salaried workforce
23,752
25,098
The headcount at December 31, 2024, including agency contract workers, stood at 26,887 employees (47,180
at December 31, 2023), showing a decrease of 20,293 employees related mainly to the NetCo transaction.
NOTE 30
OTHER OPERATING EXPENSES
This item decreased by 110 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Write-downs and expenses in connection with credit management
232
226
Provision charges
56
86
TLC operating fees and charges
213
218
Indirect duties and taxes
78
60
Penalties, settlement compensation and administrative fines
9
24
Subscription dues and fees, donations, scholarships and traineeships
9
9
Sundry expenses
65
149
Total
662
772
of which, included in the supplementary disclosure on financial instruments
232
226
NOTE 31
INTERNALLY GENERATED ASSETS
This item decreased by 37 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Intangible assets with a finite useful life
174
205
Tangible assets
123
129
Total
297
334
They mainly refer to capitalization of labor costs regarding software development activities and development
of network solutions, applications and innovative services as well as design, implementation and testing of
mobile network infrastructure and facilities.
TIM Group Consolidated
Financial Statements
Note 29
Employee benefits expenses
376
NOTE 32
DEPRECIATION AND AMORTIZATION
This item decreased by 103 million euros compared to 2023. The breakdown is as follows:
(million euros)
2024
2023
Amortization of intangible assets with a finite useful life
Industrial patents and intellectual property rights
933
968
Concessions, licenses, trademarks and similar rights
477
484
Other intangible assets
9
10
(a)
1,419
1,462
Depreciation of tangible assets owned
Buildings (civil and industrial)
11
11
Plant and equipment
1,042
1,036
Manufacturing and distribution equipment
1
1
Other
140
143
(b)
1,194
1,191
Amortization of rights of use assets
Property
142
165
Plant and equipment
415
456
Other tangible assets
14
16
Intangible assets
5
2
(c)
576
639
Total
(a+b+c)
3,189
3,292
For further details refer to the Notes "Intangible assets with a finite useful life", "Tangible assets" and "Rights
of use assets".
For a breakdown of depreciation and amortization by operating segment/geographical area, reference should
be made to Note 39 "Segment Reporting".
NOTE 33
GAINS/(LOSSES) ON DISPOSALS OF NON-
CURRENT ASSETS
This item was broken down as follows:
(million euros)
2024
2023
Gains on disposals of non-current assets:
Gains on the retirement/disposal of intangible, tangible and user rights on
rental
15
15
(a)
15
15
Losses on disposals of non-current assets:
Losses on the retirement/disposal of intangible, tangible and user rights on
rental
12
26
(b)
12
26
Total
(a-b)
3
(11)
TIM Group Consolidated
Financial Statements
Note 32
Depreciation and amortization
377
NOTE 34
IMPAIRMENT REVERSALS (LOSSES) ON NON-
CURRENT ASSETS
This item consisted of:
(million euros)
2024
2023
Impairment reversals on non-current assets:
on intangible assets
—
—
on tangible assets
—
—
(a)
—
—
Impairment losses on non-current assets:
on intangible assets
—
—
on tangible assets
14
—
related to the sale of the Telecom Italia Sparkle Group
80
—
(b)
94
—
Total
(a-b)
(94)
—
In accordance with IAS 36, goodwill is not subject to amortization, but is tested for impairment on an annual
basis, when preparing the company’s separate and consolidated financial statements.
In preparing the Annual Report for 2024, the TIM Group carried out an impairment test on goodwill. The results
of that testing, carried out in accordance with the specific procedure adopted by the Group, confirmed the
amounts of Goodwill allocated to the Group’s individual Cash Generating Units.
On February 12, 2025, the Directors of TIM S.p.A. accepted the binding offer for the sale of the entire stake
(100%) held in Telecom Italia Sparkle, and the recoverability of the related net assets was verified after
allocating the portion of Domestic goodwill allocable to the Sparkle group, estimated at 52 million euros. As a
result of this assessment, it emerged that it was necessary to make an impairment charge that resulted in a
total impact on the income statement of 80 million euros, 52 million euros of which related to the allocated
goodwill.
NOTE 35
OTHER INCOME (EXPENSES) FROM
INVESTMENTS
This item consisted of:
(million euros)
2024
2023
Dividends from Other investments
2
2
Net gains on the sale of investments in associates and joint ventures
accounted for using the equity method
70
45
Sundry income (expense)
3
6
Total
75
53
of which, included in the supplementary disclosure on financial instruments
2
2
The item was positive for 75 million euros in 2024 (positive for 53 million euros in 2023) and
mainly refers to:
■
the net gain (62 million euros) related to the sale of TIM's remaining 10% stake in the share capital of the
holding company Daphne 3 S.p.A., which holds 30.8% of the share capital of Infrastrutture Wireless Italiane
("INWIT");
■
to net capital gains related to the sale of investments in Italtel S.p.A., NordCom S.p.A. and Swascan S.r.l.
totaling approximately 8 million euros.
The balance for the 2023 financial year mainly includes the income connected to the definition of the Adjusted
Closing Price relating to the acquisition by the Brazilian subsidiary TIM SA of part of the Oi group's mobile
telephony assets (56 million euros).
TIM Group Consolidated
Financial Statements
Note 34
Impairment reversals (losses) on non-current assets
378
NOTE 36
FINANCE INCOME AND EXPENSES
Finance income (expenses) showed a net expense of 1,343 million euros (expense of 1,404 million euros in
2023) and comprises:
(million euros)
2024
2023
Finance income
1,044
1,235
Finance expenses
(2,387)
(2,639)
Net finance income (expenses)
(1,343)
(1,404)
The items break down as follows:
(million euros)
2024
2023
Interest expenses and other finance expenses:
Interest expenses and other costs relating to bonds
(739)
(855)
Interest expenses to banks
(236)
(314)
Interest expenses to others
(81)
(70)
Finance expenses on lease liabilities
(297)
(319)
(1,353)
(1,558)
Commissions
(72)
(58)
Other finance expenses (*)
(263)
(179)
(335)
(237)
Interest income and other finance income:
Interest income
127
136
Income from financial receivables, recorded in Non-current assets
79
123
,
assets
—
—
Income from securities other than investments, recorded in Current assets
24
25
Miscellaneous finance income (*)
54
70
284
354
Total net finance interest/(expenses)
(a)
(1,404)
(1,441)
Other components of finance income and expenses:
Net exchange gains and losses
22
(3)
Net result from derivatives
50
(2)
Net fair value adjustments to fair value hedge derivatives and underlying
instruments
—
—
Net fair value adjustments to non-hedging derivatives
(11)
42
Total other components of finance income and expenses
(b)
61
37
Total net finance income (expenses)
(a+b)
(1,343)
(1,404)
of which, included in the supplementary disclosure on net financial
instruments
(974)
(1,170)
(*) of which IFRS 9 impact:
(million euros)
2024
2023
Income from negative adjustment of IFRS 9 impairment reserve on financial assets
measured at FVTOCI
—
1
Expenses from positive adjustment of IFRS 9 impairment reserve on financial assets
measured at FVTOCI
(1)
(1)
Income/Expenses from IFRS 9 reserve impairment on financial assets measured at
FVTOCI
(1)
—
Reversal of IFRS 9 impairment reserve on financial assets measured at FVTOCI
1
6
Impairment losses on financial assets other than investments
—
—
Further details on Financial Instruments are provided in the Note 20"Supplementary disclosure on financial
instruments".
TIM Group Consolidated
financial statements
Note 36
Finance income and expenses
379
For greater clarity of presentation, the net effects relating to derivative financial instruments are summarized
in the following table:
(million euros)
2024
2023
Foreign currency conversion gains
315
271
Exchange losses
(293)
(274)
Net exchange gains and losses
22
(3)
Income from fair value hedge derivatives
—
—
Charges from fair value hedge derivatives
—
—
Net result from fair value hedge derivatives
(a)
—
—
Positive effect of the reversal of the Reserve of cash flow hedge
derivatives to the income statement (interest rate component)
332
461
Negative effect of the reversal of the Reserve of cash flow hedge
derivatives to the income statement (interest rate component)
(273)
(370)
Net effect of the Reversal of the Reserve of cash flow hedge derivatives
to the income statement (interest rate component)
(b)
59
91
Income from non-hedging derivatives
50
62
Charges from non-hedging derivatives
(59)
(155)
Net result from non-hedging derivatives
(c)
(9)
(93)
Net result from derivatives
(a+b+c)
50
(2)
Positive fair value adjustments to fair value hedge derivatives
—
—
Negative fair value adjustments relating to financial assets and liabilities
underlying fair value hedge derivatives
(8)
—
Net fair value adjustments
(d)
(8)
—
Positive fair value adjustments to Underlying financial assets and liabilities
of fair value hedge derivatives
8
—
Negative fair value adjustments relating to fair value hedge derivatives
—
—
Net fair value adjustments
(e)
8
—
Net fair value adjustments to fair value hedge derivatives and
underlying instruments
(d+e)
—
—
Positive fair value adjustments to non-hedging derivatives
(f)
55
87
Negative fair value adjustments to non-hedging derivatives
(g)
(66)
(45)
Net fair value adjustments to non-hedging derivatives
(f+g)
(11)
42
TIM Group Consolidated
financial statements
Note 36
Finance income and expenses
380
NOTE 37
PROFIT (LOSS) FOR THE YEAR
The profit (loss) for the year can be analyzed as follows:
(million euros)
2024
2023
Profit (loss) for the year
(364)
(1,107)
Attributable to:
Owners of the Parent:
Profit (loss) from continuing operations
(99)
(270)
Profit (loss) from Discontinued operations / Non current assets held for sale
(511)
(1,171)
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
Non-controlling interests:
Profit (loss) from continuing operations
182
176
Profit (loss) from Discontinued operations / Non current assets held for sale
64
158
Profit (loss) for the year attributable to Non-controlling interests
246
334
The result related to “Discontinued operations/Non-current assets held for sale” was negative 447 million
euros; specifically, it includes a gain of 183 million euros, which is net of incidental costs, recognized in the
second half of 2024 following the completion of the NetCo sale.
The Net loss for 2024 was 364 million euros (loss of 610 million euros attributable to owners of the Parent).
Specifically:
■
the second half of 2024 saw a profit of 139 million euros (profit of 36 million euros attributable to owners of
the Parent);
■
the first half of 2024 resulted in a loss of 503 million euros (loss of 646 million euros attributable to the
owners of the Parent), also related to the assets included in Discontinued Operations, which were sold on
July 1, 2024.
Also, please note that the Master Services Agreement governing the relationship between TIM S.p.A. and NetCo
became effective as of July 1, 2024.
TIM Group Consolidated
Financial Statements
Note 37
Profit (loss) for the year
381
NOTE 38
EARNINGS PER SHARE
2024
2023
Basic earnings per share
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
Less: additional dividends for the savings shares (0.011 euros per
share and up to capacity)
—
—
(million euros)
(610)
(1,441)
Average number of ordinary and savings shares
(millions)
21,259
21,250
Basic earnings per share – Ordinary shares
(euros)
(0.03)
(0.07)
Plus: additional dividends per savings share
—
—
Basic earnings per share – Savings shares
(euros)
(0.03)
(0.07)
Basic earnings per share from continuing operations
Profit (loss) from continuing operations attributable to Owners of
the Parent
(99)
(270)
Less: additional dividends for the savings shares
—
—
(million euros)
(99)
(270)
Average number of ordinary and savings shares
(millions)
21,259
21,250
Basic earnings per share from continuing operations – Ordinary
shares
(euros)
—
(0.01)
Plus: additional dividends per savings share
—
—
Basic earnings per share from continuing operations – Savings
shares
(euros)
—
(0.01)
Basic earnings per share from Discontinued operations/Non-
current assets held for sale attributable to owners of the Parent
Profit/(loss) from Discontinued operations/Non-current assets held
for sale attributable to owners of the Parent
(million euros)
(511)
(1,171)
Average number of ordinary and savings shares
(millions)
21,259
21,250
Basic earnings per share from Discontinued operations/Non-
current assets held for sale attributable to owners of the Parent -
Ordinary Share
(euros)
(0.03)
(0.06)
Basic earnings per share from Discontinued operations/Non-
current assets held for sale attributable to owners of the Parent -
Savings Share
(euros)
(0.03)
(0.06)
2024
2023
Average number of ordinary shares
15,231,587,091
15,222,590,778
Average number of savings shares
6,027,791,699
6,027,791,699
Total
21,259,378,790 21,250,382,477
TIM Group Consolidated
Financial Statements
Note 38
Earnings per share
382
2024
2023
Diluted earnings per share
Profit (loss) for the year attributable to owners of the Parent
(610)
(1,441)
Dilution effect of stock option plans and convertible bonds (*)
—
—
Less: additional dividends for the savings shares (0.011 euros per
share and up to capacity)
—
—
(million euros)
(610)
(1,441)
Average number of ordinary and savings shares
(millions)
21,261
21,259
Diluted earnings per share – Ordinary shares
(euros)
(0.03)
(0.07)
Plus: additional dividends per savings share
—
—
Diluted earnings per share – Savings shares
(euros)
(0.03)
(0.07)
Diluted earnings per share from continuing operations
Profit (loss) from continuing operations attributable to Owners of
the Parent
(99)
(270)
Dilution effect of stock option plans and convertible bonds (*)
—
—
Less: additional dividends for the savings shares
—
—
(million euros)
(99)
(270)
Average number of ordinary and savings shares
(millions)
21,261
21,259
Diluted earnings per share from continuing operations – Ordinary
shares
(euros)
—
(0.01)
Plus: additional dividends per savings share
—
—
Diluted earnings per share from continuing operations – Savings
shares
(euros)
—
(0.01)
Diluted earnings per share from Discontinued operations/Non-
current assets held for sale attributable to owners of the Parent
Profit/(loss) from Discontinued operations/Non-current assets held
for sale attributable to owners of the Parent
(million euros)
(511)
(1,171)
Dilution effect of stock option plans and convertible bonds
—
—
Average number of ordinary and savings shares
(millions)
21,261
21,259
Diluted earnings per share from Discontinued operations/Non-
current assets held for sale attributable to owners of the Parent -
Ordinary Share
(euros)
(0.03)
(0.06)
Diluted earnings per share from Discontinued operations/Non-
current assets held for sale attributable to owners of the Parent -
Savings Share
(euros)
(0.03)
(0.06)
2024
2023
Average number of ordinary shares (*)
15,233,023,694
15,231,210,398
Average number of savings shares
6,027,791,699
6,027,791,699
Total
21,260,815,393
21,259,002,097
(*) The average number of ordinary shares also includes potential ordinary shares relating to employee stock ownership plans for which the
performance conditions (market and otherwise) have been met. Consequently, the “Net profit (loss) for the year attributable to owners of the
Parent" and the “Profit (loss) from continuing operations attributable to owners of the Parent” are also adjusted to exclude the effects, net of tax,
related to the above-mentioned plans. As regards 2024 and 2023, however, these effects have not been included in the calculation insofar as, in
accordance with the provisions of IAS 33, the latter are allegedly anti-diluting.
Future potential changes in share capital
The table below shows future potential changes in share capital, based on the long-term share incentive plans,
still outstanding at December 31, 2024:
Number of
maximum
shares
issuable
Share capital
(thousands of
euros)
Additional
paid-in capital
(thousands of
euros)
Subscription
price per
share
(euros)
Capital increases already approved (ordinary shares)
Stock Options Plan 2022-2024
257,763,000
109,292
0.424
Total
257,763,000
109,292
Further information is provided in Note 16 “Non-current and current financial liabilities” and Note 41 “Equity
compensation plans”.
TIM Group Consolidated
Financial Statements
Note 38
Earnings per share
383
NOTE 39
SEGMENT REPORTING
a) Segment reporting
The operating segments of the TIM Group, organized for the telecommunications business and the related
geographical location are as follows:
The operating segments of the TIM Group are as follows:
■
Domestic: includes the activities in Italy relating to voice and data services on fixed and mobile networks for end
users (retail) and other operators (MVNOs)), the activities of the Telecom Italia Sparkle Group which, at
international level (in Europe, the Mediterranean and South America), develops fiber optic networks for wholesale
customers, the operations of Noovle S.p.A. (Cloud and Edge Computing solutions), the activities of Olivetti
(products and services for Information Technology), and, Domestic sector support structures;
■
Brazil: includes mobile and fixed telecommunications operations in Brazil (TIM S.A.);
■
Other operations: include the financial companies (Telecom Italia Capital S.A. and Telecom Italia Finance S.A.) and
other minor companies not strictly related to the TIM Group's core business.
The TIM Group has embarked on a transformation process which aims to overcome the Group’s vertically integrated
model by forming separate entities with different industrial and economic focuses. To date, these entities cannot be
considered an “operating segment” within the meaning of IFRS 8 – Operating Segments, since these are still in an
analytical design and subsequent implementation phase and, therefore, do not have a detailed set of economic and
financial information.
In the course of 2025, once the process described above has been completed, and also taking into account the sale of
NetCo on July 1, 2024, an assessment will be carried out to identify the operating segments in accordance with IFRS 8,
with reference to the specific indications provided for by the standard itself (autonomy of operating flows, methods of
allocating financial resources, management reporting, etc.).
TIM Group Consolidated
Financial Statements
Note 39
Segment reporting
384
Separate Consolidated Income Statements by Operating Segment
(million euros)
Domestic
Brazil
Other Operations
Adjustments and
eliminations
Consolidated
Total
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Third-party revenues
10,079
9,901
4,363
4,411
—
—
—
(1) 14,442 14,311
Intragroup revenues
32
36
3
1
—
—
(35)
(37)
—
—
Revenues by operating segment
10,111
9,937
4,366
4,412
—
—
(35)
(38) 14,442 14,311
Other income
208
125
24
17
2
—
(1)
(1)
233
141
Total operating revenues and other income
10,319 10,062
4,390
4,429
2
—
(36)
(39) 14,675 14,452
Acquisition of goods and services
(6,447) (5,789) (1,601)
(1,687)
(2)
(3)
33
34 (8,017) (7,445)
Employee benefits expenses
(1,145)
(1,612)
(331)
(338)
(1)
(1)
(1)
1
(1,478) (1,950)
indemnities
—
—
—
—
—
—
—
—
—
—
Other operating expenses
(265)
(383)
(393)
(383)
(5)
(4)
1
(2)
(662)
(772)
of which: write-downs and expenses in
connection with credit management and
provision charges
(150)
(165)
(138)
(147)
—
—
—
—
(288)
(312)
Change in inventories
17
9
(7)
18
—
—
—
(1)
10
26
Internally generated assets
195
225
97
102
—
—
5
7
297
334
EBITDA
2,674
2,512
2,155
2,141
(6)
(8)
2
—
4,825
4,645
Depreciation and amortization
(1,984)
(1,974) (1,205)
(1,318)
—
—
— (3,189) (3,292)
Gains (losses) on disposals of non-current
assets
(7)
(22)
10
10
—
—
—
1
3
(11)
Impairment reversals (losses) on non-current
assets
(94)
—
—
—
—
—
—
(94)
—
EBIT
589
516
960
833
(6)
(8)
2
1
1,545
1,342
Share of losses (profits) of associates and joint
ventures accounted for using the equity
method
(6)
(12)
(14)
(17)
—
—
—
—
(20)
(29)
Other income (expenses) from investments
75
53
Finance income
1,044
1,235
Finance expenses
(2,387) (2,639)
Profit (loss) before tax from continuing operations
257
(38)
Income tax expense
(174)
(56)
Profit (loss) from continuing operations
83
(94)
Profit (loss) from Discontinued operations / Non current assets held for sale
(447)
(1,013)
Profit (loss) for the year
(364) (1,107)
Attributable to:
Owners of the Parent
(610) (1,441)
Non-controlling interests
246
334
Revenues by operating segment
(million euros)
Domestic
Brazil
Other Operations
Adjustments and
eliminations
Consolidated
Total
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Revenues from equipment sales - third party
849
889
148
142
—
—
—
(1)
997
1,030
Revenues from equipment sales - intragroup
—
—
—
(1)
—
—
—
1
—
—
Total revenues from equipment sales
849
889
148
141
—
—
—
—
997
1,030
Revenues from services - third party
9,230
9,012
4,215
4,269
—
—
—
— 13,445 13,281
Revenues from services - intragroup
32
36
3
2
—
—
(35)
(38)
—
—
Total revenues from services
9,262
9,048
4,218
4,271
—
—
(35)
(38) 13,445 13,281
Total third-party revenues
10,079
9,901
4,363
4,411
—
—
—
(1) 14,442 14,311
Total intragroup revenues
32
36
3
1
—
—
(35)
(37)
—
—
Total revenues by operating segment
10,111
9,937
4,366
4,412
—
—
(35)
(38) 14,442 14,311
TIM Group Consolidated
Financial Statements
Note 39
Segment reporting
385
Purchase of intangible, tangible and right of use assets by operating segment
(million euros)
Domestic
Brazil
Other Operations
Adjustments and
eliminations
Consolidated
Total
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Purchase of intangible assets
667
655
188
183
—
—
—
—
855
838
Purchase of tangible assets
609
635
585
643
—
—
—
—
1,194
1,278
Purchase of right of use assets
286
174
514
542
—
—
—
—
800
716
Total purchases of intangible assets,
tangible assets and right of use assets
1,562
1,464
1,287
1,368
—
—
—
—
2,849
2,832
of which: capital expenditures
1,349
1,334
780
834
—
—
—
—
2,129
2,168
of which: increases in lease/leasing
contracts for right of use assets
213
130
507
534
—
—
—
—
720
664
Headcount by Operating Segment
(number of units)
Domestic
Brazil
Other Operations
Consolidated Total
12/31/202
4
12/31/2023
12/31/202
4
12/31/2023
12/31/202
4
12/31/2023
12/31/202
4
12/31/2023
Headcount
17,751
37,901
9,123
9,267
13
12
26,887
47,180
Assets and liabilities by Operating Segment
(million euros)
Domestic
Brazil
Other Operations
Adjustments and
eliminations
Consolidated Total
12/31/2024
12/31/2023
12/31/2024
12/31/2023
12/31/2024
12/31/2023
12/31/2024
12/31/202
3
12/31/2024
12/31/2023
Non-current operating assets
20,304
40,769
6,558
7,916
1
1
—
—
26,863
48,686
Current operating assets
3,322
4,027
1,017
1,046
16
19
(48)
(48)
4,307
5,044
Total operating assets
23,626
44,796
7,575
8,962
17
20
(48)
(48)
31,170
53,730
Investments accounted for using
the equity method
52
266
213
271
—
—
—
—
265
537
Discontinued operations /Non-current assets held for sale
—
Unallocated assets
6,228
7,892
Total Assets
37,663
62,159
Total operating liabilities
6,708
9,746
1,978
2,214
19
22
(52)
(85)
8,653
11,897
Liabilities directly associated with Discontinued operations/Non-current assets held for sale
—
Unallocated liabilities
15,649
32,749
Equity
13,361
16,999
Total Equity and Liabilities
37,663
62,159
b) Reporting by geographical area
Revenues
Non-current operating assets
(million euros)
Breakdown by location of
operations
Breakdown by location of
customers
Breakdown by location of
operations
2024
2023
2024
2023
12/31/2024
12/31/2023
Italy
(a)
9,823
9,606
9,219
9,002
20,093
40,549
Outside Italy
(b)
4,619
4,705
5,223
5,309
6,770
8,137
Total
(a+b)
14,442
14,311
14,442
14,311
26,863
48,686
c) Information about major customers
None of the TIM Group's customers make up for more than 10% of consolidated revenues.
TIM Group Consolidated
Financial Statements
Note 39
Segment reporting
386
NOTE 40
RELATED-PARTY TRANSACTIONS
The following tables show the figures relating to related party transactions and the impact of those amounts
on the TIM Group’s Separate Consolidated Income Statements, Consolidated Statements of Financial Position
and consolidated statements of cash flows.
Pursuant to Art. 5, paragraphs 8 and 9, of Consob Regulation no. 17221 of March 12, 2010 concerning "Related-
party transactions" and subsequent amendments, in the 2024 financial year there are no transactions of
greater importance, as defined by the Art. 4, paragraph 1, letter. a) of the aforementioned regulation which
have significantly influenced the financial situation or results of the TIM Group.
In addition, there were no transactions concluded in 2024 that significantly impacted the equity position or
results of the TIM Group, nor were there any changes or developments with respect to the related-party
transactions described in the 2023 Report on Operations which had a significant effect on the financial position
or on the performance of the TIM Group in 2024.
It should also be noted that on October 4, 2024, at the same time as receiving the first non-binding offer for
the purchase of Telecom Italia Sparkle, the Board of Directors identified the Ministry of Economy and Finance
(MEF) as a related party of TIM. For the purpose of the 2024 financial statements, as required by IAS 24
paragraph 26, a qualitative analysis was carried out on existing relationships with MEF subsidiaries. This
analysis showed that these relationships are mainly related to purchases of goods and services (energy,
transportation, postal services) that are conducted at normal market conditions.
Related-party transactions, when not dictated by specific laws, were conducted at arm’s length. They were
performed in compliance with the internal procedure, which sets forth rules designed to ensure the
transparency and fairness of the transactions in accordance with Consob Regulation 17221/2010. The current
procedure is available on the website gruppotim.it, under the Group - Governance - Governance Tools - Other
Codes and Procedures section.
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
387
The effects of the related-party transactions on the TIM Group separate consolidated income statement line
items for 2024 and 2023 are as follows:
SEPARATE CONSOLIDATED INCOME STATEMENT LINE ITEMS 2024
(million euros)
Total
Associates,
subsidiaries of
associates
and joint
ventures
Other
related
parties (*)
Pension
funds
Key Managers
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Revenues
14,442
157
71
228
(9)
237
1.6
Other income
233
1
—
1
—
1
0.4
Acquisition of goods and
services
8,017
86
166
252
(1)
251
3.1
Employee benefits
expenses
1,478
56
16
72
(18)
54
3.7
Depreciation and
amortization
3,189
3
3
(3)
—
—
Finance income
1,044
—
3
—
3
—
3
0.3
Finance expenses
2,387
4
4
—
4
0.2
Profit (loss) from
Discontinued operations /
Non current assets held
for sale
(447)
—
(13)
(17)
(1)
(31)
(*) Vivendi Group and companies belonging to the group that it belongs to, Cassa Depositi e Prestiti (CDP) and its subsidiaries, the Ministry of Economy and Finance (MEF)
and other related parties through Directors, Statutory Auditors and Key Managers.
SEPARATE CONSOLIDATED INCOME STATEMENT LINE ITEMS 2023
(million euros)
Total
Associates,
subsidiaries of
associates
and joint
ventures
Other
related
parties (*)
Pension
funds
Key Managers
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Revenues
14,311
44
312
356
(279)
77
0.5
Other income
141
2
(11)
(9)
11
2
1.4
Acquisition of goods and
services
7,445
124
207
331
(41)
290
3.9
Employee benefits
expenses
1,950
74
18
92
(35)
57
2.9
Depreciation and
amortization
3,292
—
5
5
(5)
—
—
Finance income
1,235
—
—
1
1
0.1
Finance expenses
2,639
4
4
—
4
0.2
Profit (loss) from
Discontinued operations /
Non current assets held
for sale
(1,013)
1
(222)
34
1
(186)
(*) Vivendi Group and companies belonging to the group that it belongs to, Cassa Depositi e Prestiti (CDP) and its subsidiaries and other related parties through Directors,
Statutory Auditors and Key Managers.
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
388
The effects of related-party transactions on the TIM Group separate consolidated statements of financial
position line items at December 31, 2024 and December 31, 2023, are as follows:
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION LINE ITEMS AT DECEMBER 31, 2024
(million euros)
Total
Associates,
subsidiaries of
associates and
joint ventures
Other related
parties (*)
Pension funds
Total related
parties
% of financial
statement item
(a)
(b)
(b/a)
Net financial debt
Securities other than
investments (current
assets)
(1,539)
—
(437)
(437)
28.4
Current financial receivables
arising from lease contracts
(44)
—
(24)
(24)
54.5
Current financial liabilities
for financing contracts and
others
3,870
1
1
—
Total net financial debt
10,237
1
(461)
—
(460)
(4)
Other statement of
financial position line
items
Right of use assets
3,467
—
1
1
—
Miscellaneous receivables
and other non-current
assets
1,795
3
—
3
0.2
Trade and miscellaneous
receivables and other
current assets
4,146
191
12
203
4.9
Trade and miscellaneous
payables and other current
liabilities
7,074
16
31
12
59
0.8
(*) Vivendi Group and companies belonging to the group that it belongs to, Cassa Depositi e Prestiti (CDP) and its subsidiaries, the Ministry of Economy and
Finance (MEF) and other related parties through Directors, Statutory Auditors and Key Managers.
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
389
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION LINE ITEMS AT 12/31/2023
(million euros)
Total
Associates,
subsidiaries of
associates and
joint ventures
Other related
parties (*)
Pension funds
Total related
parties
% of financial
statement item
(a)
(b)
(b/a)
Net financial debt
Non-current financial
receivables arising from
lease contracts
(112)
(64)
(64)
57.1
Current financial receivables
arising from lease contracts
(162)
(53)
(53)
32.7
Non-current financial
liabilities for lease contracts
4,743
2
2
—
Current financial liabilities
for financing contracts and
others
5,771
2
2
—
Current financial liabilities
for lease contracts
838
3
3
0.4
Total net financial debt
25,776
(112)
(110)
(0.4)
Other statement of
financial position line
items
Right of use assets
5,515
51
51
0.9
Miscellaneous receivables
and other non-current
assets
2,187
2
2
0.1
Trade and miscellaneous
receivables and other
current assets
4,699
50
44
94
2.0
Miscellaneous payables and
other non-current liabilities
1,326
19
19
1.4
Trade and miscellaneous
payables and other current
liabilities
9,384
29
71
23
123
1.3
(*) Vivendi Group and companies belonging to the group that it belongs to, Cassa Depositi e Prestiti (CDP) and its subsidiaries and other related parties through
Directors, Statutory Auditors and Key Managers.
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
390
The effects of the related-party transactions on the significant TIM Group consolidated statements of cash
flows line items for 2024 and 2023 are as follows:
CONSOLIDATED STATEMENT OF CASH FLOWS LINE ITEMS 2024
(million euros)
Total
Associates,
subsidiaries of
associates
and joint
ventures
Other
related
parties (*)
Pension
funds
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Purchase of intangible, tangible and rights
of use assets on an accrual basis
2,849
1
13
14
(1)
13
0.5
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti (CDP) and its subsidiaries, the Ministry of Economy and Finance (MEF) and
other related parties through Directors, Statutory Auditors and Key Managers.
CONSOLIDATED STATEMENT OF CASH FLOWS LINE ITEMS 2023
(million euros)
Total
Associates,
subsidiaries of
associates
and joint
ventures
Other
related
parties (*)
Pension
funds
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Purchase of intangible, tangible and rights
of use assets on an accrual basis
2,832
39
27
66
(26)
40
2.3
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti (CDP) and its subsidiaries and other related parties through Directors,
Statutory Auditors and Key Managers.
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
391
Transactions with associates, subsidiaries of associates and
joint ventures
The most significant values of the transactions with associates, subsidiaries of associates and joint ventures
are summarized in the tables below.
It should be noted that the investments in Italtel S.p.A. and NordCom S.p.A. were sold by TIM S.p.A. on July 4,
2024 and July 15, 2024, respectively.
SEPARATE CONSOLIDATED INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
TYPE OF CONTRACT
Revenues
Polo Strategico Nazionale S.p.A.
183
72
Supply of software and related installation and
configuration services; security services; cloud services,
Data Center spaces, connectivity, design.
I-Systems S.A.
1
5
Services
related
to
network
operation
and
maintenance.
Italtel S.p.A.
1
2
Fixed
and
mobile
telephony
services
including
equipment, licenses and outsourcing services.
TIMFin S.p.A.
(28)
(36)
Mobile and fixed voice services, outsourcing services
and fees; costs related to financing transactions
recognized as a reduction of the Parent Company TIM
S.p.A.'s revenues.
Other minor companies
—
Total revenues
157
44
Other income
1
2
Recovery of seconded personnel costs, recovery of
centralized expenses.
Acquisition of goods and services
I-Systems S.A.
78
80
Supply of multimedia communication services and
capacity services.
Italtel S.p.A.
1
34
Supply of equipment and software licenses and related
professional
services;
hardware
and
software
maintenance services linked to TIM offers to end
customers;
network
and
security
equipment
maintenance services for a period of 24 months linked
to the TIM offer for the customer Poste Italiane;
supplies for the expansion of TIM's fiber network.
W.A.Y. S.r.l.
7
9
Supply, installation and technical assistance services for
geolocation equipment provided as part of offers to TIM
customers, software development.
Other minor companies
—
1
Total acquisition of goods and
services
86
124
Finance expenses
TIMFin S.p.A.
4
4
Finance expenses for commission and other finance
expenses.
Total finance expenses
4
4
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
392
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
TYPE OF CONTRACT
Net financial debt
Current financial liabilities for
financing contracts and others
1
2
Financial liabilities for expenses on the transfer of
receivables in respect of TIMFin S.p.A.
Miscellaneous receivables and other
non-current assets
3
2
Prepayment (non-current portion) of costs to Italtel
S.p.A.
Polo Strategico Nazionale S.p.A.
185
45
Supply
of
products,
software
installation
and
configuration services, cloud servers, Data Center
spaces, connectivity and design.
I-Systems S.A.
4
1
Services
related
to
network
operation
and
maintenance.
Italtel S.p.A.
—
2
Supply of fixed and mobile telephone services including
equipment, Microsoft licenses and outsourcing services;
prepayment (current portion) of costs.
TIMFin S.p.A.
1
1 Miscellaneous costs for loans.
W.A.Y. S.r.l.
—
1
Supply, installation and technical assistance services for
geolocation equipment provided as part of offers to TIM
customers, software development.
Other minor companies
1
Total trade and miscellaneous
receivables and other current assets
191
50
Trade and miscellaneous payables
and other current liabilities
Italtel S.p.A.
—
10
Supply contracts connected with investment and
operation.
I-Systems S.A.
9
11
Supply of multimedia communication services and
capacity services.
TIMFin S.p.A.
3
5 Miscellaneous costs for loans.
NordCom S.p.A.
—
1
Purchase and development of IT solutions, customized
services as part of TIM offerings for end customers,
rentals for SRB hosting.
W.A.Y. S.r.l.
3
2
Supply, installation and technical assistance services for
geolocation equipment provided as part of offers to TIM
customers, software development.
Total trade and miscellaneous
payables and other current
liabilities
16
29
CONSOLIDATED STATEMENT OF CASH FLOWS LINE ITEMS
(million euros)
2024
2023
TYPE OF CONTRACT
Purchase of intangible, tangible and
rights of use assets on an accrual
basis
Italtel S.p.A.
1
39
Software development, FTTH design for FiberCop
works, supply of hardware and software, installations of
hardware and engineering services for the network
platforms; supplies for the expansion of TIM's fiber
network.
Total purchases of intangible,
tangible and rights of use assets on
an accrual basis
1
39
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
393
Transactions with other related parties (through directors,
statutory auditors and key managers, as well as participants in
shareholder agreements pursuant to Article 122 of the
Consolidated Law on Finance)
Details are provided below of the transactions with:
■
Vivendi Group and the companies of the group that it belongs to;
■
Cassa Depositi e Prestiti Group (CDP) and Group subsidiaries;
■
Ministry of Economy and Finance (MEF)
■
Companies related through Directors, Statutory Auditors and Key Managers with strategic
responsibilities.
SEPARATE CONSOLIDATED INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
TYPE OF CONTRACT
Revenues
Cassa Depositi e Prestiti Group
70
311
Transfer of rights to use lead-in ducts and revenues for the rental of
vertical segments, IRU transfer of rights to use dark fiber installation
and infrastructures; supply of housing, dark fiber maintenance and
dedicated GEA/Giganet connectivity services, fixed and mobile voice
services and devices, application outsourcing services, cloud services,
maintenance services to Open Fiber (formerly Metroweb) and
electricity supply services.
Vivendi group
—
1
Circuit rental services and feasibility study for routing and submarine
cable interface solutions in America to the Vivendi Group.
Other minor companies
1
—
Totale ricavi
71
312
Acquisition of goods and services
Cassa Depositi e Prestiti Group
2
40
Concession of the installation of sheaths for telecommunication cables
along the motorway segments (occupation of soil and movement of
cables) and maintenance of the Open Fiber (formerly Metroweb)
network of Milan and Genoa (primary network portion).
Havas Group
157
159
Service & advisory activities in the purchase of media space by the TIM
Group; study and implementation of advertising campaigns for the TIM
and KENA brands, editorial management services for TIM brands on
social media and TIM Group data room management services
Vivendi group
7
8
Operational management of TIM's “TIM I Love Games” online store
platform and related developments; TIM cloud gaming (TIMGAMES)
service in SaaS mode; use of My Canal platform licenses.
Totale acquisti di materie e servizi
166
207
Ammortamenti
3
5
Purchase of underground infrastructure in black areas and purchase of
connected fiber to Open Fiber (formerly Metroweb), a company of the
Cassa Depositi e Prestiti group.
Finance income
Ministry of Economy and Finance
2
Cassa Depositi e Prestiti Group
1
—
Totale proventi finanziari
3
0
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
394
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
TYPE OF CONTRACT
Net financial debt
Non-current financial assets
—
(64)
Lease agreements for aerial infrastructure with Open
Fiber (Cassa Depositi e Prestiti group).
Securities other than investments
(current assets)
(437)
—
Bond securities issued by the Ministry of Economy and
Finance (MEF).
Financial receivables and other
current financial assets
(24)
(53)
Contratti di locazione infrastrutture con Open Fiber
(gruppo Cassa Depositi e Prestiti).
Total financial receivables and other
current financial assets
(461)
(117)
Non-current financial liabilities
—
2
Leasing contract for Open Fiber (formerly Metroweb), a
company of the Cassa Depositi e Prestiti group
Current financial liabilities
—
3
Payable for purchase in IRU infrastructure from Open
Fiber (formerly Metroweb), a company of the Cassa
Depositi e Prestiti group.
position line items
Right of use assets
1
51
Supply and installation of vertical segments and
infrastructures for Open Fiber (a company of the Cassa
Depositi e Prestiti group).
Trade and miscellaneous
receivables and other current assets
Cassa Depositi e Prestiti Group
10
43
Cessione in IRU di diritti d'uso su Infrastrutture di Posa e
Fibra Scura; fornitura servizi di Housing, manutenzione
Fibra Scura e connettività dedicata GEA/Giganet, servizi
di fonia fissa mobile ed apparati, servizi di outsourcing
applicativi, servizi in cloud, servizi di manutenzione e
fornitura energia elettrica.
Havas Group
2
1 Risconti attivi connessi a costi per servizi pubblicitari.
Total trade and miscellaneous
receivables and other current assets
12
44
Miscellaneous payables and other
non-current liabilities
Cassa Depositi e Prestiti Group
—
18 Risconti passivi da canoni differiti.
Vivendi group
—
1 Risconti passivi per vendita IRU.
Total miscellaneous payables and
other non-current liabilities
—
19
Trade and miscellaneous payables
and other current liabilities
Cassa Depositi e Prestiti Group
1
32
Concessione della posa di polifora per cavi di
telecomunicazioni
lungo
le
tratte
autostradali
(occupazione di suolo e spostamento cavi), utilizzo e
manutenzione della rete Open Fiber (ex Metroweb) di
Milano e Genova (quota rete primaria) e acquisti di
energia elettrica.
Havas Group
29
36
Attività di service & advisory nell'ambito dell'acquisto di
spazi media da parte del Gruppo TIM; studio e
realizzazione di campagne pubblicitarie per i marchi TIM
e KENA, servizi di gestione editoriale dei brand TIM sui
social network e servizi di gestione della data room di
TIM.
Vivendi group
1
3
Acquisto di contenuti digitali musicali e televisivi,
gestione operativa della piattaforma dello store on line
denominato “TIM I Love Games” di TIM e relativi
sviluppi; servizio TIM Cloud Gaming (TIMGAMES) in
modalità SaaS; utilizzo delle licenze piattaforma My
Canal.
Total trade and miscellaneous
payables and other current
liabilities
31
71
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
395
CONSOLIDATED STATEMENT OF CASH FLOWS LINE ITEMS
(million euros)
2024
2023
TYPE OF CONTRACT
Purchase of intangible, tangible and
rights of use assets on an accrual
basis
Cassa Depositi e Prestiti Group
13
27
Investments in intangible and tangible assets (supplier:
Open Fiber), in relation to the 5G Coverage Plan under
the NRRP.
Total purchases of intangible,
tangible and rights of use assets on
a cash basis
13
27
Transactions with pension funds
The most significant amounts are summarized as follows:
SEPARATE CONSOLIDATED INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
TYPE OF CONTRACT
Employee benefits expenses
Contributions to pension funds.
Fontedir
7
8
Telemaco
44
63
Other pension funds
5
3
Total employee benefits expenses
56
74
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
TYPE OF CONTRACT
Trade and miscellaneous payables
and other current liabilities
Payables for contributions to pension funds.
Fontedir
2
2
Telemaco
1
20
Other pension funds
9
1
Total trade and miscellaneous
payables and other current
liabilities
12
23
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
396
Remuneration to Key Managers with Strategic Responsibilities
In 2024, the total remuneration recorded on an accrual basis by TIM or by Group subsidiaries in respect of key
managers amounted to 16 million euros (18 million euros in 2023).
(million euros)
2024
2023
Short-term remuneration
14
(1)
15
(3)
Long-term remuneration
—
—
Employment termination benefit incentives
—
—
Share-based payments (*)
2
(2)
3
(4)
Totale
16
18
(*) These refer to the fair value of the rights, accrued to December 31, under the share-based incentive plans of TIM S.p.A. and its subsidiaries (Long
Term Incentive, Stock Options Plan and Plans of the subsidiaries).
(1) of which 1.4 million euros recorded by the subsidiaries;
(2) of which 1.7 million euros recorded by subsidiaries;
(3) of which 1.4 million euros recorded by subsidiaries;
(4) of which 0.5 million euros recorded by subsidiaries.
Short-term remuneration is paid during the reference year, and, at the latest, within the six months following
the end of that period and, in 2024, do not include the effects of assessment differences related to 2023 costs
amounting to -0.4 million euros for TIM S.p.A. Likewise, they do not take in the value referring to the taxable
amount of the LTI 2021-2023 Plan shares granted during the first half of 2024, amounting to 0.5 million euros.
In 2024, the contributions paid in to defined contribution plans (Assida and Fontedir) by TIM S.p.A. on behalf of
key managers, amounted to 232,000 thousand euros (230,900 thousand euros at December 31, 2023).
In 2024, "Key managers", i.e. those who have the power and responsibility, directly or indirectly, for the
planning, direction and control of the operations of the TIM Group, including directors, were the following:
Directors:
Pietro Labriola
Managing Director and Chief Executive Officer of TIM S.p.A.
General Manager of TIM S.p.A.
Managers:
Alberto Maria Griselli
Diretor Presidente TIM S.A.
Adrian Calaza Noia
(1) Chief Financial Officer
Paolo Chiriotti
(2) Chief Human Resources & Organization Officer
Simone De Rose
(3) Chief Procurement & Logistics Officer
Giampaolo Leone
(4) Chief Procurement & Logistics Officer
Massimo Mancini
(5) Chief Enterprise Market Officer
Roberto Mazzilli
(6) Chief IT Group Officer
Giovanni Gionata Massimiliano Moglia
(7) Chief Regulatory Affairs Officer
Agostino Nuzzolo
(8) Chief Legal, Regulatory & Tax Officer
Claudio Giovanni Ezio Ongaro
(9) Chief Strategy, Business Development & Wholebuy Officer
Elisabetta Romano
(10) Chief Network, Operations & Wholesale Officer
Andrea Rossini
Chief Consumer, Small & Medium and Mobile Wholesale Market Officer
Eugenio Santagata
(11) Chief Public Affairs, Security and International Business Officer
Elio Schiavo
Chief Enterprise and Innovative Solutions Officer
(1) From November 24, 2023 to June 30, 2024, also Interim Head of Administration, Finance & Control in the Chief Network, Operations & Wholesale
Office.
(2) From November 24, 2023, to June 30, 2024, also Interim Head of Human Resources and Organization in the Chief Network, Operations &
Wholesale Office.
(3) Until October 23, 2024. From November 24, 2023, to June 30, 2024, also Interim Head of Procurement in the Chief Network, Operations &
Wholesale Office.
(4) Since October 24, 2024.
(5) Until March 6, 2024.
(6) Since September 27, 2024.
(7) Until June 30, 2024. From November 24, 2023, also Interim Head of Regulatory Affairs in the Chief Network, Operations & Wholesale Office.
(8) Head of Legal & Tax until September 27, 2024 and Head of Legal, Regulatory & Tax since September 28, 2024. From November 24, 2023, to June
30, 2024, also Interim Head of Legal & Tax in the Chief Network, Operations & Wholesale Office.
(9) From November 24, 2023, to June 30, 2024, also Interim Head of Strategy & Business Development in the Chief Network, Operations &
Wholesale Office.
(10) Until June 30, 2024.
(11) Head of Public Affairs & Security Office until September 27, 2024. From November 24, 2023 to June 30, 2024, also Interim Head of Public Affairs
& Security in the Chief Network, Operations & Wholesale Office.
TIM Group Consolidated
Financial Statements
Note 40
Related-party transactions
397
NOTE 41
EQUITY COMPENSATION PLANS
The Shareholders’ Meeting of April 23, 2020 approved the launch of the rolling and equity based long-term
incentive plan called LTI 2020-2022.
The Plan envisaged three incentive cycles, connected with the performance three-year periods 2020-2022,
2021-2023, 2022-2024; over time, two of the three incentive cycles have been launched: 2020-2022, 2021-2023.
On April 7, 2022, the Shareholders’ Meeting approved, after acknowledging the changes in scenario, the
obsolescence of the 2020-2022 Long Term Incentive Plan and replaced the third cycle of this plan with the new
2022-2024 Stock Options Plan described below, which completed its vesting period on December 31, 2024.
For more details on the 2020-2022 LTI and 2021-2023 LTI Plans, see the TIM Group’s Consolidated Financial
Statements as at December 31, 2022 and December 31, 2023.
Description of stock option plans
TIM S.p.A. 2022-2024 Stock Option Plan.
The Shareholders’ Meeting held on April 7, 2022, approved the one-shot 2022-2024 Stock Option Plan with the
aim of attracting, retaining and providing long-term incentives for Group managers, who are the Plan’s
beneficiaries.
The final results of the objectives tied to this Plan were approved by the TIM S.p.A. Board of Directors on March
5, 2025.
It should be noted that these plans do not have a significant impact on profit and loss or the balance sheet as
of December 31, 2024.
The Plan has a strike price of 0.4240 euros, a three-year vesting period (1.1.2022-12.31.2024) and a two-year
exercise period (from approval of the 2024 financial statements and through to the next two years).
The following performance conditions are also envisaged for the three-year period 2022-2024:
■
Cumulative (reported) Economic-financial indicator (EBITDA-CapEx) with a weight of 70%;
■
ESG indicators with a total weight of 30%, structured into:
•
percentage of women in positions of responsibility (15%);
•
percentage of consumption of renewable energies (15%).
The level of achievement of the indicators determines the accrual of option rights over an interval that ranges
from -10% to + 10% with respect to the target number allocated per bracket.
At December 31, 2024, there were a total of 142 addressees and the number of options assigned at target is
196,144,979.
For further details, see the Information Document on the initiative at
https://www.gruppotim.it/content/dam/gt/investitori/doc---avvisi/anno-2022/ita/Doc-informativo-Piano-
stockoption-22-24.pdf.
Description of other compensation plans
TIM S.A. – Long Term Incentive Plan 2021-2023
On March 30, 2021, the General Meeting of Shareholders of TIM S.A. approved the long-term incentive plan for
managers in key positions in the company. The plan aims to reward participants with shares issued by the
company, according to specific time (restricted shares) and performance (performance shares) conditions. The
vesting period is 3 years and the company does not have the legal obligation to repurchase or liquidate the
shares in cash or in any other form. The plan – in addition to transferring shares to beneficiaries – also includes
the possibility of rewarding participants through the settlement of the amount corresponding in cash.
Year 2021
On May 5, 2021, plan beneficiaries were granted the right to receive a total of 3,431,610 shares, of which
3,173,142 performance shares restricted to performance conditions and with gradual vesting over 3 years and
258,468 restricted shares, with a vesting period of 3 years.
In 2021, the Special Grant was added to the traditional plan, a further extraordinary concession with the aim of
encouraging the closure of the purchase operation for part of Oi Móvel’s assets in Brazil as well as the success
of the subsequent integration operations.
Of the total 3,431,610 shares granted, 1,151,285 relate to the traditional grant (with 892,817 performance
shares and 258,468 restricted shares) and 2,280,325 refer to the Special Grant.
On February 9, 2023, the Board of Directors agreed to adjust the number of performance shares granted under
the Special Grant by 220,743 to conform the award to the new participant role.
On December 31, 2024, three vesting periods were completed:with regard to the traditional grant:
TIM Group Consolidated
Financial Statements
Note 41
Equity compensation plans
398
■
2022: in compliance with the results approved on April 26, 2022, in July 572,608 shares were transferred to
beneficiaries, of which 463,608 relating to the original volume accrued, 87,605 granted according to the
degree to which objectives had been achieved and 21,395 shares as a result of the dividends distributed
during the period. In addition, for participants transferred to other Group companies, as per the Plan rules,
payment in cash was considered in June of the amount corresponding to 3,486 shares (2,883 relating to
the original volume accrued, 473 acknowledged according to the degree to which the objectives had been
achieved and 130 due to dividends distributed during the period).
■
2023: in compliance with the results approved on May 8, 2023, in July 169,462 shares were transferred to
beneficiaries, of which 128,384 relating to the original volume accrued, 28,484 granted according to the
degree to which objectives had been achieved and 12,594 shares as a result of the dividends distributed
during the period. In addition, for participants transferred to other Group companies, as per the Plan rules,
payment in cash was considered in July of the amount corresponding to 17,576 shares (13,316 relating to
the original volume accrued, 2,954 acknowledged according to the degree to which the objectives had
been achieved and 1,306 due to dividends distributed during the period).
■
2024: in compliance with the results approved on May 6, 2024, in July 530,784 shares were transferred to
beneficiaries, of which 298,151 relating to the original volume accrued, 180,353 granted according to the
degree to which objectives had been achieved and 52,280 shares as a result of the dividends distributed
during the period. In addition, for participants transferred to other Group companies, as per the Plan rules,
payment in cash was considered in July of the amount corresponding to 31,677 shares (17,792 relating to
the original volume accrued, 10,764 acknowledged according to the degree to which the objectives had
been achieved and 3,121 due to dividends distributed during the period).
Regarding the Special Grant:
■
2022: in compliance with the results approved on April 26, 2022, 601,936 shares were transferred to
beneficiaries in July, of which 579,451 relating to the original volume accrued and 22,485 shares as a result
of the dividends distributed during the period.
■
2023: in compliance with the results approved on May 8, 2023, in July 1,038,041 shares were transferred to
beneficiaries, of which 829,161 relating to the original volume accrued, 131,775 granted according to the
degree to which objectives had been achieved and 77,105 shares as a result of the dividends distributed
during the period. In addition, for participants transferred to other Group companies, as per the Plan rules,
payment in cash was considered in July of the amount corresponding to 92,254 shares (76,087 relating to
the original volume accrued, 9,314 acknowledged according to the degree to which the objectives had
been achieved and 6,853 due to dividends distributed during the period).
■
2024: in compliance with the results approved on May 6, 2024, in July 719,164 shares were transferred to
beneficiaries, of which 483,928 relating to the original volume accrued, 164,415 granted according to the
degree to which objectives had been achieved and 70,821 shares as a result of the dividends distributed
during the period. In addition, for participants transferred to other Group companies, as per the Plan rules,
payment in cash was considered in July of the amount corresponding to 19,892 shares (13,385 relating to
the original volume accrued, 4,548 acknowledged according to the degree to which the objectives had
been achieved and 1,959 due to dividends distributed during the period).
At December 31, 2024, and including the shares for July transfer, of the original volume assigned of 3,431,610
shares plus the 220,743 assigned due to participants’ appointments to new roles, 746,207 had been canceled
due to the beneficiaries having left the company and 3,631,995 shares had been transferred to beneficiaries
(2,782,683 related to the original volume vested, 592,632 recognized on the basis of performance achieved and
256,680 for effect of dividends distributed during the period). For participants transferred to other Group
companies, as per the Plan rules, payment in cash was considered of the amount corresponding to 164,885
shares (123,463 relating to the original volume accrued, 28,053 acknowledged according to the degree to
which the objectives had been achieved and 13,369 due to dividends distributed during the period), thus
completing the 2021 grant.
Year 2022
On April 26, 2022, plan beneficiaries were granted the right to receive a total of 1,227,712 shares, of which
927,428 performance shares restricted to performance conditions and with gradual vesting over 3 years and
300,284 restricted shares, with a vesting period of 3 years.
■
2023: in compliance with the results approved on May 8, 2023, in July 392,460 shares were transferred to
beneficiaries, of which 264,305 relating to the original volume accrued, 110,928 granted according to the
degree to which objectives had been achieved and 17,227 shares as a result of the dividends distributed
during the period.
■
2024: in compliance with the results approved on May 6, 2024, in July 680,532 shares were transferred to
beneficiaries, of which 252,442 relating to the original volume accrued, 374,411 granted according to the
degree to which objectives had been achieved and 53,679 shares as a result of the dividends distributed
during the period. In addition, for participants transferred to other Group companies, as per the Plan rules,
payment in cash was considered in July of the amount corresponding to 19,018 shares (7,055 relating to
the original volume accrued, 10,463 acknowledged according to the degree to which the objectives had
been achieved and 1,500 due to dividends distributed during the period). In October, 57,021 shares were
transferred to beneficiaries, of which 37,087 relating to the original volume accrued, 15,437 granted
according to the degree to which objectives had been achieved and 4,497 shares as a result of the
dividends distributed during the period. As of December 31, 2024, 48,123 shares had been canceled due to
beneficiaries leaving the Company.
As of December 31, 2024, 240,228 of a total of 1,227,712 allocated shares had been canceled due to
beneficiaries leaving the Company. This left a total of 426,595 shares that could be vested at the end of the
period.
TIM Group Consolidated
Financial Statements
Note 41
Equity compensation plans
399
Year 2023
On July 31, 2023, plan beneficiaries were granted the right to receive a total of 1,560,993 shares, of which
1,189,900 performance shares restricted to performance conditions and with gradual vesting over 3 years and
371,093 restricted shares, with a vesting period of 3 years.
■
2024: in compliance with the results approved on May 6, 2024, in August 475,520 shares were transferred
to beneficiaries, of which 227,983 relating to the original volume accrued, 223,132 granted according to the
degree to which objectives had been achieved and 24,405 shares as a result of the dividends distributed
during the period. In October, 135,421 shares were transferred to beneficiaries, of which 78,467 relating to
the original volume accrued, 50,008 granted according to the degree to which objectives had been
achieved and 6,946 shares as a result of the dividends distributed during the period.
As of December 31, 2024, 156,811 of a total of 1,560,993 allocated shares had been canceled due to
beneficiaries leaving the Company. This left a total of 1,097,732 shares that could be vested at the end of the
period.
TIM S.A. – Long Incentive Plan 2024-2026
On March 28, 2024, the General Meeting of Shareholders of TIM S.A. approved the long-term incentive plan for
managers in key positions in the company. The plan aims to reward participants with shares issued by the
company, according to specific time (restricted shares) and performance (performance shares) conditions. The
vesting period is 3 years and the company does not have the legal obligation to repurchase or liquidate the
shares in cash or in any other form. The plan – in addition to transferring shares to beneficiaries – also includes
the possibility of rewarding participants through the settlement of the amount corresponding in cash.
Year 2024
On July 30, 2024, plan beneficiaries were granted the right to receive a total of 1,226,859 shares, of which
946,060 performance shares restricted to performance conditions and with gradual vesting over 3 years and
280,799 restricted shares, with a vesting period of 3 years.
As of December 31, 2024, 84,518 of a total of 1,226,859 allocated shares had been canceled due to
beneficiaries leaving the Company. This left a total of 1,142,341 shares that could be vested at the end of the
period.
Calculation of fair value measurement of the granted options
and rights
Parameters used to determine the fair value – TIM S.p.A.
Plans/Parameters
Exercise
price
(euros)
Nominal
value
(euros)
(1)
Volatility
(2)
Duration
Expected
dividends
(euros)
(3)
Risk-free
interest rate
(4)
SOP 2022-2024
0.424
—
34.6%
3 years
0.02
0.479% at 3
years
(1)
Arithmetic mean of the official prices of the Shares recognized starting from the stock market trading day prior to that of assignment until
the thirtieth previous ordinary calendar day (both included) on the Electronic Stock Exchange organized and managed by Borsa Italiana
S.p.A., calculated using only the days to which the prices taken as the basis of calculation refer as the divisor, cut off at the second decimal.
(2)
Based on the performance objectives of the plan, the TIM share volatility values were considered and, if necessary, also those of the securities
of the major companies of the telecommunications sector (“peer basket”).
(3)
Dividends have been estimated on the basis of Bloomberg data.
(4)
The risk-free interest rate refers to the rate of government bonds of the Federal Republic of Germany (market benchmark for transactions in
euros) on the valuation date with a maturity consistent with the reporting period.
Parameters used for the assignments of TIM S.A.
Plans/Parameters
Nominal
value
(reais)
Duration
PS/RS Plan 2021
12.95
3 years
PS/RS Plan 2022
13.23
3 years
PS/RS Plan 2023
12.60
3 years
PS/RS Plan 2024
18.34
3 years
Effects on the income statement and statement of financial position
Equity compensation plans which call for payment in equity instruments are recorded at fair value, which
represents the cost of such instruments at the grant date and is recorded in the separate income statements
under “Employee benefits expenses” over the period between the grant date and the vesting period with a
contra-entry to the equity reserve (“Other equity instruments”). For the portion of the plans that provide for
the payment of compensation in cash, the amount is recognized in liabilities as a contra-entry to “Employee
benefits expenses”. Equity compensation plans which call for payment in equity instruments did not have
significant impacts either on the income statements or the statements of financial position or of cash flows of
the TIM Group at December 31, 2024.
TIM Group Consolidated
Financial Statements
Note 41
Equity compensation plans
400
NOTE 42
SIGNIFICANT NON-RECURRING EVENTS AND
TRANSACTIONS
The effect of 2024 non-recurring events and transactions on the equity, profit, net financial debt and cash
flows of the TIM Group is set out below in accordance with Consob Communication DEM/6064293 of July 28,
2006. The non-recurring effects on Equity and Profit (loss) for the year are shown net of tax effects.
(million euros)
Equity
Profit (loss)
for the year
Net financial
debt
Cash
flows (*)
Carrying amount
(a)
13,361
(364)
10,126
113
Other income
55
55
—
—
Acquisition of goods and services - Expenses related to
agreements and the development of non-recurring projects
and other expenses
(23)
(23)
24
(24)
Employee benefits expenses - Charges connected to
corporate reorganization/restructuring and other costs
(83)
(83)
458
(458)
Other operating expenses - Charges from regulatory
litigation and sanctions and contingencies, other provisions
and charges
(41)
(41)
168
(168)
Gains on disposals of non-current assets
3
3
(1)
1
Impairment losses related to the sale of the Telecom Italia
Sparkle group
(80)
(80)
—
—
Other income/(expense) from investments
69
69
(271)
271
Other finance income
1
1
—
—
Other finance expenses
(79)
(79)
—
—
Total non-recurring effects
(b)
(178)
(178)
378
(378)
Income/(Expenses) relating to Discontinued operations
(c)
166
166
(15,321)
4,169
Figurative amount – financial statements
(a-b-c)
13,373
(352)
25,069
(3,678)
(*) Cash flows refer to the increase (decrease) in Cash and cash equivalents during the year.
TIM Group Consolidated
Financial Statements
Note 42
Significant non-recurring events and transactions
401
The impact of non-recurring items on the Separate Consolidated Income Statements line items is as follows:
(million euros)
2024
2023
Operating revenues and other income:
Other income - Contingent gain
55
—
Acquisition of goods and services, Change in inventories:
Acquisition of goods and services - Expenses related to agreements and the
development of non-recurring projects and other expenses
(23)
(42)
Employee benefits expenses:
Charges connected to corporate reorganization/restructuring and other costs
(87)
(482)
Other operating expenses:
Expenses from regulatory litigation and sanctions and contingencies, other provisions
and expenses
(45)
(132)
Impact on Operating profit (loss) before depreciation and amortization, capital gains
(losses) and impairment reversals (losses) on non-current assets (EBITDA)
(100)
(656)
Gains (losses) on disposals of non-current assets:
Gains on disposals of non-current assets
3
—
Net losses on disposals of non-current assets
—
(3)
Impairment reversals (losses) on non-current assets
Impairment losses related to the sale of the Telecom Italia Sparkle group
(80)
—
Impact on Operating profit (loss) (EBIT)
(177)
(659)
Other income (expenses) from investments:
Other (expenses)/income from corporate operations
68
—
Net capital gain on corporate transactions
—
46
Finance income:
Other finance income
1
(3)
Finance expenses:
Other finance expenses
(96)
(35)
Impact on profit (loss) before tax from continuing operations
(204)
(651)
Income tax expense on non-recurring items
26
(1)
Income/(Expenses) relating to Discontinued operations
166
(18)
Impact on Profit (loss) for the year
(12)
(670)
NOTE 43
POSITIONS OR TRANSACTIONS RESULTING
FROM ATYPICAL AND/OR UNUSUAL
OPERATIONS
In accordance with Consob Communication DEM/6064293 of July 28, 2006, a statement is made to the effect
that in 2024 the TIM Group did not pursue any atypical and/or unusual transactions, as defined by that
Communication.
TIM Group Consolidated
Financial Statements
Note 42
Significant non-recurring events and transactions
402
NOTE 44
OTHER INFORMATION
(a) Exchange rates used to translate the financial statements
of foreign operations(*)
Year-end exchange rates
Average exchange rates for the year
(statements of financial position)
(income statements and statements of
h fl
)
(local currency against 1 euro)
12/31/2024
12/31/2023
2024
2023
Europe
BGN
Bulgarian lev
1.95580
1.95580
1.95580
1.95580
CZK
Czech koruna
25.18500
24.72400
25.11989
24.00227
CHF
Swiss franc
0.94120
0.92600
0.95268
0.97174
TRY
Turkish lira
36.73720
32.65310
35.56202
25.72788
GBP
Pound sterling
0.82918
0.86905
0.84666
0.86984
RON
Romanian leu
4.97430
4.97560
4.97463
4.94676
RUB
Russian ruble
117.69650
99.55840
100.43821
92.48971
North America
USD
U.S. dollar
1.03890
1.10500
1.08209
1.08157
Latin America
VES
Venezuelan bolivar
53.77410
39.62740
41.50741
30.78872
BOB
Bolivian bolíviano
7.15080
7.64290
7.46514
7.46531
PEN
Peruvian nuevo sol
3.88790
4.09640
4.06054
4.04772
ARS
Argentine peso
1,067.32740
894.53730
990.20651
319.80098
CLP
Chilean peso
1,031.22000
974.79000
1,021.10031
908.72842
COP
Colombian peso
4,559.17000
4,287.88000
4,406.72481
4,672.59585
BRL
Brazilian real
6.43318
5.34964
5.82877
5.40158
Other countries
ILS
Israeli shekel
3.78850
3.99930
4.00504
3.98749
INR
Indian rupee
88.93350
91.90450
90.53835
89.32065
NGN
Nigerian naira
1,597.89150
1,008.82030
1,602.68136
693.02751
(*) Source: Data processed by the European Central Bank, Reuters and major Central Banks.
(b) Research and development
Costs for research and development activities are represented by external costs, dedicated employee benefits
expenses and depreciation and amortization. Details are as follows:
(million euros)
2024
2023
Research and development costs expensed during the year
35
39
Capitalized development costs
523
566
Total research and development costs (expensed and capitalized)
558
605
The reduction compared to 2023 is mainly attributable to the Parent Company TIM S.p.A. partly due to the
time rescheduling of some projects (IPCEI, Public Safety) and partly due to the reduction of information
technology related spending as a result of efficiency and rationalization of suppliers.
In the 2024 Separate Consolidated Income Statement, a total of 575 million euros of amortization expense was
recorded for development costs, capitalized during the year and in prior years.
Research and development activities carried out by the TIM Group are described in detail in the Report on
Operations (“Innovation, Research and Development” section).
TIM Group Consolidated
Financial Statements
Note 44
Other information
403
(c) Lease income
The TIM Group has entered into lease contracts on land and buildings for office and industrial use, mobile
network infrastructure sites and network infrastructure; at December 31, 2024 and at December 31, 2023 the
lease installments at nominal value still to be collected totaled:
(million euros)
12/31/2024
12/31/2023
Within next year
43
97
From 1 to 2 years after the end of the reporting period
5
46
From 2 to 3 years after the end of the reporting period
5
41
From 3 to 4 years after the end of the reporting period
5
39
From 4 to 5 years after the end of the reporting period
4
37
Beyond 5 years after the end of the reporting period
2
34
Total
64
294
(d) Public funds
Italian Law 124/2017 requires that information on subsidies, contributions, paid assignments and economic
benefits of any kind received from Italian public administrations be provided. In this regard, the following table
shows the disbursements collected by the TIM Group in the years 2024 and 2023:
Distributing entity
Area of intervention
Received in
2024
(
illi
)
Received in
2023
(
illi
)
Fondimpresa/Fondirigenti
training
2
3
Infratel
construction of network
i f
7
758 (*)
Ministry of Enterprises and Made in Italy (MIMIT)(1)
research and innovation
32
3
ANPAL
training
1
3
Other(2)
1
1
Total
43
768
(*) include 488 million euros collected on January 2, 2024; 705 million euros were disbursed to FiberCop S.p.A. on July 1, 2024.
(1) 2024 - includes TIM Edge & Cloud Continuum projects; TIMONE, CADUCEO; 2023 – includes ChAALenge and TIMONE Projects.
(2) 2024 - MUR and the Lombardy Region, Sector affected: research; 2023 – MUR; Sector affected: research.
■
In 2024, TIM S.p.A. received an advance of 31.2 million euros on non-repayable grants for the TIM Edge &
Cloud Continuum project, targeted at research and development of a next-generation Edge and Cloud
environment.
These benefits were granted by the Ministry of Enterprises and Made in Italy under the IPCEI Fund, in
accordance with Article 5 of the Decree of April 21, 2021.
■
In 2024, TIM also received 7 million euros in non-repayable grants relating to the Investment Project for the
Construction of Broadband Infrastructure in the Tuscany Region.
The project falls under State aid no. SA.33807(2011/N) concerning the implementation of the "National
broadband plan Italy", authorized by the European Commission in Decision C(2012) 3488 of May 24, 2012.
In January 2015, TIM S.p.A. was admitted to the benefit scheme of Infratel Italia S.p.A. The scheme began
on March 11, 2015, and it finished being implemented on October 30, 2017.
■
TIM also received non-repayable grants of EUR 0.7 million euros in 2024 and EUR 0.9 million euros in 2023
in relation to the "TIMONE - TIM Oss for Network Evolution" research and development project (Scheme
no. F/140007/00/X39). TIM was admitted to the benefit scheme of the Italian facilities by the Ministry of
Economic Development (now Ministry of Enterprises and Made in Italy) in June 2020 (M.D. 0002324 -
06/03/2020).
The 6 Goals of the TIMONE scheme were target at OSS transformation and evolution activities in the areas
of Network Creation & Inventory, Fulfillment, Assurance and AI/CC/ML.
The scheme was rolled out on October 1, 2019 and wrapped up on September 30, 2022.
■
TIM S.p.A. was admitted to the benefits scheme introduced by the Ministry of Enterprises and Made of Italy
under Ministerial Decree of March 5, 2018 in relation to two R&D projects concerning technological
innovation in the health sector: ChAALenge (Scheme no. F/180016/01-05/X43) and CADUCEO (Scheme no.
F/180025/01-05/X43 - "Cloud plAtform for intelligent prevention and Diagnosis sUpported by artifiCial
intelligEnce solutiOns).
•
The ChAALenge project’s “Smart Everything Everywhere” model aims to improve the quality of life of
frail people in every environment by building an integrated system to support frailty and aging. The
project was rolled out on January 1, 2021 and wrapped up on December 31, 2023. TIM received non-
repayable grants of 0.4 million euros in 2023. No disbursements were made in FY2024.
•
The CADUCEO project aims to create an advanced cloud platform supported by AI-based solutions for
intelligent prevention and diagnosis in the field of health. The project’s core concept is to harness the
power of AI and cloud computing to improve medical diagnosis and prevention strategies. The project
was rolled out on January 11, 2021 and wrapped up on December 31, 2024. TIM received non-repayable
grants of 0.2 million euros in 2024.
TIM Group Consolidated
Financial Statements
Note 44
Other information
404
(e) Directors’ and statutory auditors’ remuneration
Total remuneration due for 2024 to the directors and statutory auditors of TIM S.p.A. for the performance of
these functions at the Parent and in other consolidated companies totaled 2.343 million euros for directors and
0.573 million euros for statutory auditors. In reference to the compensation to which the Directors are entitled,
it should be noted that the amount was calculated by considering only compensation for corporate offices (in
primis those under Article 2389, subsections 1 and 3 of the Italian Civil Code), thus excluding amounts relating
to any employment relationship with the companies of the Group and any non-monetary fringe benefits; for a
complete and detailed description of the compensation paid to the directors and statutory auditors, reference
should be made to the Compensation Report, available at the Company’s headquarters and on the corporate
website at the following address: gruppotim.it/assembly.
(f) Summary schedule of fees due to the audit firm and other
firms in its network
The following schedule reports the fees due to EY S.p.A. and to the other firms in the EY network for the audit
of the 2024 financial statements, and the fees referring to 2024 for other audit and review services, and for
other services besides audit rendered to the companies of the TIM Group from EY S.p.A. and other firms in the
EY network. The out-of-pocket expenses incurred for these services in 2024 are also shown.
EY S.p.A.
Other entities of the EY network
(thousands of euros)
TIM
S.p.A.
Subsidiaries
TIM
Group
TIM
S.p.A.
Subsidiaries
TIM
Group
Total
EY network
Audit services
3,415
2,266
5,681
—
2,261
2,261
7,942
Audit services with the issue of
certification
479
172
651
—
3
3
654
Sustainability statement
assurance services
360
—
360
—
51
51
411
Other services
—
—
—
—
150
150
150
Total 2024 fees due for auditing
and other services to the EY
network
4,254
2,438
6,692
—
2,465
2,465
9,157
Out-of-pocket expenses
39
30
69
—
29
29
98
Total
4,293
2,468
6,761
—
2,494
2,494
9,255
TIM Group Consolidated
Financial Statements
Note 44
Other information
405
NOTE 45
EVENTS AFTER DECEMBER 31, 2024
TIM S.A. settles disputes with C6 group and monetizes its
interests
On February 11, 2025, TIM S.A.- a Brazilian subsidiary of the TIM Group -and Banco C6 S.A. entered into an
agreement to end all disputes related to the partnership between the two companies and, consequently, to
resolve the four arbitration proceedings currently pending.
During the partnership period, TIM S.A. had obtained the right to a minority stake in the bank's capital of
6.06%, of which 4.62% was held in the form of subscription options (derivatives) and 1.44% as a shareholding
in Banco C6 S.A..
The agreement signed provides for the termination of the partnership, as well as the transfer of all shares held
by TIM S.A. in Banco C6 S.A., as well as all outstanding subscription options, for an amount of 520 million
Brazilian reais (before taxes). The transfer of shares and options was subject to the approval of the Cayman
Islands Monetary Authority (CIMA). Following the intervening approval, on March 20, 2025 TIM S.A. announced
the termination of the Partnership between the Companies, all related litigation, and the termination of the
four pending arbitration proceedings. Following this, the two companies will make financial adjustments
between the parties.
TIM S.p.A.: the BoD approved MEF and Retelit's bid for Sparkle
On February 12, 2025, TIM's Board of Directors reviewed the binding offer for the purchase of TIM's 100% stake
in Telecom Italia Sparkle S.p.A., sent the previous day by the Ministry of Economy and Finance (MEF) and
Retelit S.p.A.
The Board, at the outcome of an extensive and thorough review, conducted with the assistance of leading
financial and legal advisors, unanimously approved, and with the favorable opinion of the Related Parties
Committee, the purchase offer submitted by the MEF and Retelit, which valued Telecom Italia Sparkle S.p.A. at
700 million euros.
Contracts will be signed by April 11, 2025, and the sale is expected to be finalized by the first quarter of 2026,
once preparatory activities, including obtaining Antitrust and Golden Power approvals, have been completed.
Approval by TIM S.A. of a new share buyback program and
termination of the previous program
On February 12, 2025, TIM S.A. (Brazil Business Unit) announced that on that date its Board of Directors
approved a new program to repurchase shares issued by it (Program 8), pursuant to Section 22, V, of the
Company's Bylaws and CVM Resolution no. 77/22, with the following conditions:
■
objective: the repurchase of TIM S.A. ordinary shares, to be held in treasury and subsequently cancelled,
without reducing share capital, and with the main objective of increasing shareholder value through the
efficient use of available cash resources by optimizing TIM's capital allocation. In addition, a small portion
of these shares will be allocated to support variable share-based compensation related to the Long-Term
Incentive Plan ("LTI");
■
number of shares that can be purchased under Program 8: up to 67,210,173 ordinary shares of the
Company, corresponding to approximately 2.78% of the total ordinary shares of the Company. The share
related to LTI represents less than 8% of the total to be repurchased (about 5 million shares). The
company's management can decide on the best time within the duration of the program to make share
purchases, and may make one or more purchases;
■
timing, price, and method of repurchase: Program 8 will commence from the date of the Board resolution
and remain in effect until August 13, 2026. Acquisitions will be made on the Stock Exchange (B3 S.A. -
Brasil, Bolsa, Balcão), at market prices, in compliance with applicable legal and regulatory limits;
■
Intermediary financial institutions: for the share repurchase transactions, the appointed intermediaries will
be Morgan Stanley corretora de títulos e valores mobiliários S.A., J.P. Morgan corretora de câmbio e valores
mobiliários S.A., BTG Pactual corretora de títulos e valores mobiliários S.A. and UBS BB corretora de
câmbio, títulos e valores mobiliários S.A.;
■
financial resources: resources from the balances of profit reserves, which amount to R$6,285,419,877.54,
according to the budget for the year ending December 31, 2024, will be used, with the exception of the
reserves referred to in Section 8, paragraph 1 of CVM Resolution 77/22. The approximate maximum amount
to be used in Program 8 is 1 billion reais.
A condition for the approval of Program 8 was that the previous program approved at the TIM S.A. Board of
Directors meeting on July 30, 2024 ("Program 7") had actually come to an end.
TIM Group Consolidated
Financial Statements
Note 45
Events after to December 31, 2024
406
NOTE 46
LIST OF COMPANIES OF THE TIM GROUP
In accordance with Consob Communication DEM/6064293 dated July 28, 2006, the list of companies is provided herein.
The list is divided by type of investment, consolidation method and operating segment.
The following is indicated for each company: name, head office, country and share capital in the original currency. In addition to the
percentage ownership of share capital, the percentage of voting rights in the ordinary shareholders’ meeting, if different from the
percentage holding of share capital, and which companies hold the investment.
Company name
Reg. office
Currency
Share Capital
% Ownership
% of
voting
rights
Participating companies
PARENT COMPANY
TIM S.p.A.
MILAN
EUR
11,677,002,855
SUBSIDIARIES CONSOLIDATED LINE-BY-LINE
DOMESTIC BU
CD FIBER S.r.l. (in liquidation) (*)
(design, construction, maintenance and management of
network infrastructure services and high-speed electronic
communication systems)
ROME
EUR
50,000
100.0000
TIM S.p.A.
MED 1 SUBMARINE CABLES Ltd
(construction and management of the submarine cable
l
1)
RAMAT GAN
(ISRAEL)
ILS
9,607,583
100.0000
TELECOM ITALIA SPARKLE S.p.A.
MINDICITY S.r.l. SOCIETA' BENEFIT
(design, development, implementation, installation,
management and marketing of software, hardware,
electronic IT systems and telecommunications systems)
CASALMAGGIORE
(CREMONA)
EUR
10,000
85.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
NOOVLE INTERNATIONAL SAGL
(ICT services)
PREGASSONA
(SWITZERLAND)
CHF
20,000
100.0000
NOOVLE S.p.A. SOCIETA' BENEFIT
NOOVLE MALTA Ltd
(ICT services)
GZIRA
(MALTA)
EUR
10,000
90.0000
NOOVLE INTERNATIONAL SAGL
NOOVLE S.p.A. SOCIETA' BENEFIT
(design, implementation and management of
infrastructures and data center services)
MILAN
EUR
1,000,000
100.0000
TIM S.p.A.
NOOVLE SICILIA S.c.a.r.l. (in liquidation)
(ICT services)
PALERMO
EUR
50,000
80.0000
NOOVLE S.p.A. SOCIETA' BENEFIT
OLIVETTI PAYMENT SOLUTIONS S.p.A. (in liquidation) (**)
(management of equity investments, study and research
activities, commercial, industrial, financial movable and real
estate activities)
MILAN
EUR
50,000
100.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
OLIVETTI S.p.A. SOCIETA' BENEFIT
(production and sale of office equipment and information
technology services)
IVREA
(TURIN)
EUR
11,000,000
100.0000
TIM S.p.A.
PANAMA DIGITAL GATEWAY S.A.
(telecommunications services and data center
t)
PANAMA CITY
(PANAMA)
USD
10,000
60.0000
TELECOM ITALIA SPARKLE S.p.A.
QTI S.r.l.
(development, production and marketing of innovative
products and services with high technological value)
FLORENCE
EUR
19,608
80.0023
TELSY S.p.A.
SPARKLE COMMUNICATIONS INDIA PRIVATE Ltd.
(telecommunications services)
MUMBAI
INR
25,500,000
99,9998
0,0002
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE UK Ltd
TELECOM ITALIA SPARKLE S.p.A.
(completion and management of telecommunications
services for public and private use)
ROME
EUR
200,000,000
100.0000
TIM S.p.A.
TELECOM ITALIA TRUST TECHNOLOGIES S.r.l.
(other operations related to non-classified IT services)
POMEZIA
(ROME)
EUR
7,000,000
100.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
TELECOM ITALIA VENTURES S.r.l.
(investment holding company)
MILAN
EUR
10,000
100.0000
TIM S.p.A.
TELECONTACT CENTER S.p.A.
(telemarketing services)
NAPLES
EUR
3,000,000
100.0000
TIM S.p.A.
TELEFONIA MOBILE SAMMARINESE S.p.A.
(development and management of mobile
telecommunications plants and services)
BORGO
MAGGIORE
(SAN MARINO)
EUR
78,000
51.0000
TIM SAN MARINO S.p.A.
(*) deleted from the Companies Register on February 12, 2025.
(*) deleted from the Companies Register on January 28, 2025.
TIM Group Consolidated
Financial Statements
Note 46
List of companies of the TIM Group
407
Company name
Reg. office
Currenc
y
Share Capital
% Ownership
% of
voting
rights
Participating companies
TELSY S.p.A.
(production, installation, maintenance, reconditioning and
sale of terminals, radio telephones, telecommunications
and electronic systems in general)
TURIN
EUR
5,390,000
100.0000
TIM S.p.A.
TI SPARKLE AMERICAS Inc.
(managed bandwidth services)
MIAMI
(USA)
USD
10,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE ARGENTINA S.A.
(managed bandwidth services)
BUENOS AIRES
(ARGENTINA)
ARS
9,998,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE AUSTRIA GmbH
(telecommunications services)
VIENNA
(AUSTRIA)
EUR
2,735,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE BELGIUM S.P.R.L. - B.V.B.A.
(telecommunications services)
BRUSSELS
(BELGIUM)
EUR
2,200,000
99,9967
0,0033
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE UK Ltd
TI SPARKLE BRASIL PARTIÇIPAÇÕES Ltda
(investment holding company)
RIO DE JANEIRO
(BRAZIL)
BRL
71,563,866
99,9999
0,0001
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE AMERICAS Inc.
TI SPARKLE BRASIL TELECOMUNICAÇÕES Ltda
(managed bandwidth services)
RIO DE JANEIRO
(BRAZIL)
BRL
69,337,363
99,9999
0,0001
TI SPARKLE BRASIL PARTIÇIPAÇÕES Ltda
TI SPARKLE AMERICAS Inc.
TI SPARKLE BULGARIA EOOD
(telecommunications)
SOFIA
(BULGARIA)
BGN
100,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE CHILE S.p.A.
(managed bandwidth services)
SANTIAGO
(CHILE)
CLP
5,852,430,960
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE COLOMBIA Ltda
(managed bandwidth services)
BOGOTA
(COLOMBIA)
COP
12,636,774,908
99,9999
0,0001
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE AMERICAS Inc.
TI SPARKLE FRANCE S.A.S.
(installation and management of telecommunications
services for fixed network and related activities)
PARIS
(FRANCE)
EUR
18,295,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE GERMANY GmbH
(telecommunications services)
FRANKFURT
(GERMANY)
EUR
25,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE GREECE S.A.
(telecommunications)
ATHENS
(GREECE)
EUR
368,760
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE ISRAEL Ltd
(international wholesale telecommunication services)
RAMAT GAN
(ISRAEL)
ILS
1,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE MEXICANA S.A. de C.V.
(telecommunications services)
MEXICO CITY
(MEXICO)
MXN
2,000,000
99,9995
0,0005
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE NETHERLANDS B.V.
(telecommunications services)
AMSTERDAM
(NETHERLANDS)
EUR
18,200
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE NORTH AMERICA, Inc.
(telecommunications and promotional services)
NEW YORK
(USA)
USD
15,550,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE PANAMA S.A.
(managed bandwidth services)
PANAMA CITY
(PANAMA)
USD
10,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE PERU' S.A.
(managed bandwidth services)
LIMA
(PERU)
PEN
57,101,788
99,9999
0,0001
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE AMERICAS Inc.
TI SPARKLE PUERTO RICO LLC
(managed bandwidth services)
SAN JUAN
(PUERTO RICO)
USD
3,050,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE ROMANIA S.r.l.
(telecommunications services)
BUCHAREST
(ROMANIA)
RON
3,021,560
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE RUSSIA LLC
(telecommunications Services)
MOSCOW
(RUSSIA)
RUB
8,520,000
99,0000
1,0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE UK Ltd
TI SPARKLE SINGAPORE Pte.Ltd
(telecommunications services)
SINGAPORE
USD
28,482
99,9999
0,0001
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE NORTH AMERICA, Inc.
TI SPARKLE SLOVAKIA S.R.O. (in liquidation)
(telecommunications services)
BRATISLAVA
(SLOVAKIA)
EUR
300,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE SPAIN TELECOMMUNICATIONS S.L.
(telecommunications services)
MADRID
(SPAIN)
EUR
1,687,124
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE ST. CROIX LLC
(managed bandwidth services)
VIRGIN ISLANDS
(USA)
USD
1,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE SWITZERLAND GmbH
(telecommunications services)
ZURICH
(SWITZERLAND)
CHF
2,000,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE TURKEY TELEKOMÜNIKASYON ANONIM SIRKETI
(telecommunications services)
ISTANBUL
(TURKEY)
TRY
65,000,000
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE UK Ltd
(value-added and networking services)
LONDON
(UNITED
KINGDOM)
EUR
3,983,254
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE VENEZUELA C.A.
(managed bandwidth services)
CARACAS
(VENEZUELA)
VES
8,825,382
100.0000
TELECOM ITALIA SPARKLE S.p.A.
TIM MY BROKER S.r.l.
(insurance brokerage)
ROME
EUR
10,000
100.0000
TIM S.p.A.
TIM Group Consolidated
Financial Statements
Note 46
List of companies of the TIM Group
408
Company name
Reg. office
Currenc
y
Share Capital
% Ownership
% of
voting
rights
Participating companies
TIM RETAIL S.r.l.
(sale of fixed and mobile telecommunications products and
services and all analog and digital broadcasting equipment)
MILAN
EUR
2,402,241
100.0000
TIM S.p.A.
TIM SAN MARINO S.p.A.
(San Marino telecommunications management)
BORGO MAGGIORE
(SAN MARINO)
EUR
1,808,000
100.0000
TIM S.p.A.
TIS LAGOS LIMITED
(telecommunications services)
LAGOS
(NIGERIA)
NGN
100,000,000
99,9999
0,0001
TELECOM ITALIA SPARKLE S.p.A.
TI SPARKLE UK Ltd
TS-WAY S.r.l.
(safeguarding and protecting the company's IT assets in the
field of IT security)
ORVIETO
(TERNI)
EUR
11,364
100.0000
TELSY S.p.A.
BRAZIL BU
TIM BRASIL SERVIÇOS E PARTICIPAÇÕES S.A.
(investment holding company)
RIO DE JANEIRO
(BRAZIL)
BRL
8,227,356,500
99,9999
0,0001
TELECOM ITALIA FINANCE S.A.
TIM S.p.A.
TIM S.A.
(telecommunications services)
RIO DE JANEIRO
(BRAZIL)
BRL
13,477,890,508
66,5882
0,0083
66.5937
TIM BRASIL SERVIÇOS E PARTICIPAÇÕES S.A.
TIM S.A.
OTHER OPERATIONS
OLIVETTI DEUTSCHLAND GmbH
(sale of office equipment and supplies)
NUREMBERG
(GERMANY)
EUR
25,600,000
100.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
OLIVETTI UK Ltd
(sale of office equipment and supplies)
NORTHAMPTON
(UNITED
KINGDOM)
GBP
6,295,712
100.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
TELECOM ITALIA CAPITAL S.A.
(financial company)
LUXEMBOURG
EUR
2,336,000
100.0000
TIM S.p.A.
TELECOM ITALIA FINANCE S.A.
(financial company)
LUXEMBOURG
EUR
1,818,691,979
100.0000
TIM S.p.A.
TELECOM ITALIA LATAM PARTICIPAÇÕES E GESTÃO
ADMINISTRATIVA Ltda
(telecommunications and promotional services)
SAO PAULO
(BRAZIL)
BRL
219,360,393
99.9998
TIM S.p.A.
Company name
Reg. office
Currenc
y
Share Capital
% Ownership
% of
voting
rights
Participating companies
ASSOCIATES AND JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD
AREE URBANE S.r.l. (in bankruptcy)
(real estate management)
MILAN
EUR
100,000
32.6200
TIM S.p.A.
I-SYSTEMS S.A.
(telecommunications systems)
SAO PAULO
(BRAZIL)
BRL
1,794,287,995
49.0000
TIM S.A.
PEDIUS S.r.l.
(Specialized telecommunications applications, telephone
line telecommunications, VoIP services)
ROME
EUR
181
16.5553
(*)
TELECOM ITALIA VENTURES S.r.l.
POLO STRATEGICO NAZIONALE S.p.A.
(design, preparation, set-up and provision of a high-
reliability national data network infrastructure for public
administration)
ROME
EUR
3,000,000
45.0000
TIM S.p.A.
SMART STRUCTURES SOLUTIONS S.r.l.
(engineering activities)
ROME
EUR
15,000
36.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
TIGLIO I S.r.l. (in liquidation)
(real estate management)
MILAN
EUR
100,000
47.8020
TIM S.p.A.
TIMFIN S.p.A.
(financing to the general public, including financing in the
form of personal and consumer loans)
TURIN
EUR
40,000,000
49.0000
TIM S.p.A.
W.A.Y. S.r.l.
(development and marketing of security and logistics
geolocation products and systems)
TURIN
EUR
136,383
40.0000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
WEBIDOO S.p.A.
(ICT services)
MILAN
EUR
242,357
10.0195
(*)
TELECOM ITALIA VENTURES S.r.l.
WESCHOOL S.r.l.
(research and development, commercialization and
patenting of all intellectual works related to technology,
information technology and telecommunications)
MILAN
EUR
25,000
15.0160
(*)
TELECOM ITALIA VENTURES S.r.l.
(*) Associated company over which TIM S.p.A. directly or indirectly exercises significant influence pursuant to IAS 28 (Investments in associates and joint ventures).
TIM Group Consolidated
Financial Statements
Note 46
List of companies of the TIM Group
409
Company name
Reg. office
Currenc
y
Share Capital
% Ownership
% of
voting
rights
Participating companies
OTHER MAJOR INVESTMENTS
CONSORZIO ITALIAN BROADCASTING ADVANCE
SOLUTIONS (I.B.A.S.) (in liquidation)
(consultancy services for the management of joint
promotional activities and related public relations of
consortium members)
DESENZANO DEL
GARDA
(BRESCIA)
EUR
16,000
12.5000
OLIVETTI S.p.A. SOCIETA’ BENEFIT
FIN.PRIV. S.r.l.
(financial company)
MILAN
EUR
20,000
14.2850
TIM S.p.A.
MIX S.r.l.
(internet service provider)
MILAN
EUR
2,500,000
11.0937
TIM S.p.A.
TIM Group Consolidated
Financial Statements
Note 46
List of companies of the TIM Group
410
CERTIFICATION OF THE CONSOLIDATED
FINANCIAL STATEMENTS PURSUANT TO
ARTICLE 81-TER OF CONSOB REGULATION 11971
DATED MAY 14, 1999, AS AMENDED
1.
We, the undersigned, Pietro Labriola, as Chief Executive Officer, and Adrian Calaza Noia, as Manager
responsible for preparing TIM S.p.A. financial reports, certify, having also considered the provisions of Article
154-bis, subsections 3 and 4, of Italian Legislative Decree 58 of February 24, 1998:
–
the adequacy in relation to the characteristics of the company and
–
the effective application of the administrative and accounting procedures used in the preparation of
the consolidated financial statements for the 2024 fiscal year.
2.
TIM has adopted the Internal Control – Integrated Framework Model (2013), issued by the Committee of
Sponsoring Organizations of the Treadway Commission, as its framework for the establishment and
assessment of its internal control system, with particular reference to the internal controls for the
preparation of the financial statements.
3.
The undersigned also certify that:
3.1
the Consolidated Financial Statements at December 31, 2024:
a)
have been prepared in compliance with the international accounting standards adopted by the
European Union pursuant to Regulation (EC) 1606/2002 of the European Parliament and Council
of July 19, 2002 (International Financial Reporting Standards – IFRS), as well as the legislative
and regulatory provisions in force in Italy, including, in particular, the measures enacted for the
implementation of Article 9 of Italian Legislative Decree 38 of February 28, 2005;
b)
agree with the results of the accounting records and entries;
c)
provide a true and fair view of the financial condition, the results of operations and the cash
flows of the Company and its consolidated subsidiaries;
3.2
The Report on Operations contains a reliable operating and financial review of the Company and of
the consolidated Group, as well as a description of their exposure to the main risks and uncertainties.
The Report on Operations also contains a reliable analysis of information concerning significant
related-party transactions.
March 5, 2025
TIM Group Consolidated
Financial Statements
Certification of the Consolidated Financial
Statements
411
INDEPENDENT AUDITORS' REPORT
TIM Group Consolidated
Financial Statements
Independent Auditors’ Report
412
EY S.p.A.
Sede Legale: Via Meravigli, 12 – 20123 Milano
Sede Secondaria: Via Lombardia, 31 – 00187 Roma
Capitale Sociale Euro 2.975.000,00 i.v.
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998
m
A member firm of Ernst & Young Global Limited
EY S.p.A.
Via Meucci, 5
10121 Torino
Tel: +39 011 5161611
Fax: +39 011 5612554
ey.com
Independent auditor’s report pursuant to article 14 of Legislative
Decree n. 39, dated 27 January 2010 and article 10 of EU Regulation
n. 537/2014
(Translation from the original Italian text)
To the Shareholders of
TIM S.p.A.
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of TIM Group (the Group), which comprise the
consolidated statement of financial position as at December 31, 2024, and the consolidated
statement of income, the consolidated statement of comprehensive income, consolidated statement
of changes in equity and consolidated statement of cash flows for the year then ended, and notes to
the consolidated financial statements, including material accounting policy information.
In our opinion, the consolidated financial statements give a true and fair view of the financial position
of the Group as at December 31, 2024, and of its financial performance and its cash flows for the
year then ended in accordance with IFRS accounting standards issued by International Accounting
Standards Board as adopted by the European Union and with the regulations issued for implementing
art. 9 of Legislative Decree n. 38/2005.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the TIM
S.p.A. in accordance with the regulations and standards on ethics and independence applicable to
audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We identified the following key audit matters:
Key Audit Matter
Audit Response
Discontinued operations
On July 1, 2024, in accordance with the
Transaction Agreement executed between TIM
and Optics S.p.A., a company controlled by
Kohlberg Kravis Roberts & Co. L.P., the
subsidiary Fibercop S.p.A., to which the
business comprising the primary network assets
and laying infrastructure had been previously
contributed, has been disposed.
The loss of control resulting from the disposal of
the interest in Fibercop S.p.A. led to its
deconsolidation and to the recognition of the
related economic and financial effects.
The gain on disposal amounted to approximately
Euro 0.2 billion, net of the related costs to sell
and after the allocation of the portion of
goodwill attributable to the disposed entity.
The economic results of the disposed entity,
attributable to TIM Group up to the date of the
Transaction, have been classified as
Discontinued Operations, in compliance with
IFRS 5.
Considering its complexity and relevance, as
well as due to the level of judgment required in
estimating certain elements which impact its
result — such as the definition of certain
components of the consideration received and
the attribution of the goodwill — the Transaction
has been considered as a key audit matter.
Disclosures related to the Transaction are
provided in Note 14 “Non-current assets held
for sale/Discontinued operations”.
Our audit procedures in response to this key
audit matter included, among others:
►obtaining an understanding of the
Transaction by participating in meetings with
the Company’s management and analyzing
the Transaction Agreement and its Annexes;
►the assessment of the methodology adopted
by the Company to define the perimeter of
the Transaction, with particular regard to the
assumptions used in the process of allocating
the goodwill to the disposed entity;
►the evaluation of the reasonableness of the
assumptions underlying the definition of the
consideration received, with specific
attention to those components whose
valuation required a high level of judgment,
such as the rights of use on P2P connections;
►the detailed testing of the identification and
quantification of the costs to sell related to
the Transaction
►the analysis and assessment of the
compliance of the accounting treatment of
the Transaction, as well as of its presentation
within the Financial Statements, with IFRS 5.
►the review of the adequacy of the disclosures
provided in the notes to the consolidated
financial statements with regards to the
Transaction
Impairment test of goodwill – Domestic
As of December 31, 2024, goodwill amounts to
Euro 11,030 million and refers for Euro 10,185
million to the Domestic cash generating unit
("CGU") and for Euro 845 million to the Brazil
CGU.
The Company determined the portion of
goodwill to be allocated to the disposed entity.
The processes and methodologies used by the
Our audit procedures in response to the key
audit matter included, among others:
►the assessment of the processes
implemented by the Group management with
reference to the criteria and methodology of
the impairment test;
►the validation of the CGUs perimeter and the
test of the allocation of the carrying value of
the Group’s assets to each CGU taking into
Group to evaluate and determine the
recoverable amount of each CGU, are based on
assumptions that are in some cases complex
and that, due to their nature, imply the use of
judgement by Management, in particular with
reference to the forecast of future cash flows
and to the estimate of the long-term growth and
discount rates applied to the future cash flow
forecasts.
Considering the level of judgment required and
the complexity of the assumptions applied in
estimating the recoverable amount of goodwill,
we considered this area a key audit matter.
Disclosures related to the assessment of
goodwill are reported in note 4 "Goodwill" and
in note 2 "Accounting policies" in the
paragraphs “Intangible assets - Goodwill”,"
Impairment of intangible, tangible and rights of
use assets - Goodwill" and "Use of estimates".
account the disposal of Fibercop and the
attribution of goodwill to disposed entity;
►the assessment of the reasonableness of the
future cash flows forecasts, including
comparisons with sector data and forecasts,
utilized in the fair value determination;
►the assessment of the consistency of the
future cash flows forecasts of each CGU with
the Group business plan;
►the assessment of forecasts in light of their
historical accuracy;
►the assessment of the reasonableness of
long-term growth rates and discount rates.
The procedures referred to in the previous
points also concerned the analysis of the
assessments performed by the independent
experts appointed by the Group.
In performing our analysis, we involved our
experts in valuation techniques, who performed
an independent recalculation and carried out
sensitivity analyses on the key assumptions in
order to determine which changes in the
assumptions could materially affect the
recoverable amount.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the
consolidated financial statements with regards
to the valuation of goodwill.
Revenue recognition
TIM Group’s revenues amounted to Euro 14,442
million as of December 31, 2024, and refer
almost entirely to the telecommunications
services rendered to retail and enterprise
customers.
Procedures over the accounting of revenues
required significant focus in the context of our
audit procedures due to (i) a highly complex
accounting process due to the number of
commercial offers, the number of underlying
application systems and the related
reconciliation processes, (ii) the presence of
certain manual phases in the revenue
recognition process, in particular for services
provided to large customers and (iii) the
complexity in estimating commitments
Our audit procedures in response to the key
audit matter included, among others:
►an understanding of the processes underlying
the revenue recognition;
►the understanding and verification of the
design and operating effectiveness of the
relevant controls over the revenue
recognition process;
►the analysis of the application systems
supporting the revenue recognition process;
►the assessment that the accounting policy
adopted for the main commercial offers is
consistent with the provisions of the
reference accounting standard;
connected to certain contracts.
The Group provides the relative disclosures in
Note 26 "Revenues" of the consolidated
financial statements.
►the analysis, on a sample basis, of some
significant transactions relating to invoices
issued and invoices to be issued, in order to
verify that the contractual data and the
evidence supporting the actual service
rendered and / or goods transferred were
consistent with the accounting policy
adopted;
►the analysis of the valuation of certain
contracts identified as onerous contracts;
►the analysis of the reconciliation of the
management accounts with the accounting
records in connection with the main balance
sheet items related to customer relations;
►the analysis of the manual journal entries.
We also required external confirmations for a
sample of customers and transactions.
Lastly, we reviewed the adequacy of the
disclosure provided in the notes to the
consolidated financial statements with regards
to the revenue recognition process.
Regulatory disputes
As of December 31, 2024, TIM Group is
involved in several regulatory disputes in
progress, many of which are characterized by
significant counterparty requests.
The main disputes concern (i) the 28-day billing
proceeding, in which AGCOM ordered TIM to
reimburse customers for unused service days,
(ii) the I820 proceeding in which AGCM fined
TIM for a conduct restricting market
competition, (iii) the I857 proceeding for a
possible agreement restricting market
competition in connection with the partnership
with DAZN and (iv) the A514, and the related
“follow-on” proposed by some other OLOs,
procedure in which the AGCM charged TIM with
conduct aimed at hindering the entry on the
market of a new operator.
In 2024, the Italian Competition Authority
(AGCM) initiate an investigation pursuant to
Article 14 of Law No. 287/1990 against
FiberCop S.p.A. and Telecom Italia S.p.A. to
assess potential violations of Article 101 TFEU,
or to verify whether any condition occurred that
Our audit procedures in response to the key
audit matter included, among others:
►an understanding of the process put in place
by Management for assessing disputes,
accompanied by test of the effectiveness of
the internal controls relevant for this
process;
►inquiries with Management regarding the
main assumptions made in connection with
disputes;
►testing of the "Legal Suite" database in order
to assess the completeness of the
proceedings in which the company is
involved;
►the analysis of the legal opinions prepared by
external consultants, based on which
Management has based its assessments;
►the analysis of the responses received from
external lawyers following our external
confirmations procedures.
Lastly, we reviewed the adequacy of the
may prevent or restrict competition in the
context of the execution of the Master Service
Agreement signed upon completion of the
disposal of Fibercop.
The assessment of the disputes was carried out
by Management, as of 31 December 2024,
based on the opinion of the external lawyers, as
well as considering the latest information
available.
The estimation of the risks connected to the
disputes in which the Group is involved, requires
a high degree of judgment by the management
and, also considering the complexity of the
regulatory framework, we considered this area a
key audit matter.
Disclosures related to the assessment of the
risks relating to the regulatory disputes in which
the Group is involved is reported in note 25
"Disputes and pending legal actions, other
information, commitments and guarantees".
disclosures provided in the notes to the
consolidated financial statements.
Fiscal disputes in Brazil
As of December 31, 2024, the TIM Group is
involved in several disputes with the Brazilian
tax authorities.
The maximum potential liability associated with
these disputes, as at December 31, 2024,
amounts to Euro 3.5 billion. With reference to
this potential liability, the Group recognized a
provision of Euro 125 million with regards to the
risks deemed probable.
The assessment of the risk related to the tax
disputes in Brazil in which the Group is involved,
requires a high degree of judgment by the
Management and, also considering the
significance of the amounts involved, we
considered it to be a key audit matter.
Disclosures related to the assessment of the
risks relating to the fiscal disputes in which the
Group is involved is reported in note 25
"Disputes and pending legal actions, other
information, commitments and guarantees".
Our audit procedures in response to the key
audit matter included, among others:
►an understanding of the process put in place
by Management for assessing disputes,
accompanied by test of the effectiveness of
the controls relevant for this process;
►inquiries with Management regarding the
main assumptions made in connection with
disputes;
►the analysis of the legal opinions prepared by
external consultants, based on which
Management has based its assessments;
►the analysis of the responses to our external
confirmation procedures received from
external lawyers, also with the involvement
of our experts in tax disputes.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the
consolidated financial statements with regards
to the disputes in which the Group is involved,
based on their compliance with the international
accounting standards and their consistency with
the results of our audit procedures.
Recoverability of deferred tax assets
As of December 31, 2024, deferred tax assets
amount, net of impairment, to Euro 452 million
in the consolidated financial statements.
Deferred tax assets refer to the temporary
deductible differences between the book and
fiscal values of assets and liabilities in the
financial statements.
The recoverability of the carrying amount of the
deferred tax assets is subject to management’s
evaluation and is based on the estimations of
the future taxable income expected in the years
in which they will be reversed.
The processes and methodologies used to
evaluate and determine the recoverable amount
of these assets, are based on assumptions that
are in some cases complex and that, due to
their nature, imply the use of judgement by
Management, in particular with reference to the
consistency of the forecasts of future taxable
income expected by the Group with those
included in the business plan.
Considering the level of judgment required and
the complexity of the assumptions applied in
estimating future taxable amount used to
determine the recoverability of the deferred tax
assets, we considered this area a key audit
matter.
Disclosures related to the assessment of
recoverability of deferred tax assets are
reported in note 2 "Accounting policies" in the
paragraphs “Income tax expense (current and
deferred)" and "Use of estimates" and in note
11 “Income tax expense (current and
deferred)".
Our audit procedures in response to the key
audit matter included, among others:
►the assessment of the reasonableness of the
assumptions underlying the estimation of
future taxable income and the reconciliation
with the figures included in the Group's
business plan;
►the assessment of the reasonableness of the
accuracy of the forecasts compared with
prior periods;
►the assessment of the Management
calculations.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the
consolidated financial statements with regards
to the recoverability of deferred tax assets.
Responsibilities of Directors and Those Charged with Governance for the
Consolidated Financial Statements
The Directors are responsible for the preparation of the consolidated financial statements that give a
true and fair view in accordance with IFRS accounting standards issued by International Accounting
Standards Board as adopted by the European Union and with the regulations issued for implementing
art. 9 of Legislative Decree n. 38/2005, and, within the terms provided by the law, for such internal
control as they determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
The Directors are responsible for assessing the Group’s ability to continue as a going concern and,
when preparing the consolidated financial statements, for the appropriateness of the going concern
assumption, and for appropriate disclosure thereof. The Directors prepare the consolidated financial
statements on a going concern basis unless they either intend to liquidate the Parent Company TIM
S.p.A. or to cease operations, or have no realistic alternative but to do so.
The statutory audit committee (“Collegio Sindacale”) is responsible, within the terms provided by the
law, for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we have
exercised professional judgment and maintained professional skepticism throughout the audit. In
addition:
we have identified and assessed the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error, designed and performed audit procedures
responsive to those risks, and obtained audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
we have obtained an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control;
we have evaluated the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Directors;
we have concluded on the appropriateness of Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going
concern;
we have evaluated the overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
we have obtained sufficient appropriate audit evidence regarding the financial information of
the entities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We have communicated with those charged with governance, identified at an appropriate level as
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We have provided those charged with governance with a statement that we have complied with the
ethical and independence requirements applicable in Italy, and we have communicated them all
matters that may reasonably be thought to bear on our independence, and where applicable, the
actions taken to eliminate relevant risks or the safeguard measures applied.
From the matters communicated with those charged with governance, we have determined those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We have described these matters in our auditor’s report.
Additional information pursuant to article 10 of EU Regulation n. 537/14
The shareholders of TIM S.p.A., in the general meeting held on March 29, 2019, engaged us to
perform the audits of the consolidated financial statements for each of the years ending December
31, 2019 to December 31, 2027.
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU
Regulation n. 537/2014, and that we have remained independent of the Group in conducting the
audit.
We confirm that the opinion on the consolidated financial statements included in this report is
consistent with the content of the additional report to the audit committee (Collegio Sindacale) in
their capacity as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/2014.
Report on compliance with other legal and regulatory requirements
Opinion on the compliance with Delegated Regulation (EU) 2019/815
The Directors of TIM S.p.A. are responsible for applying the provisions of the European Commission
Delegated Regulations (EU) 2019/815 for the regulatory technical standards on the specification of a
single electronic reporting format (ESEF – European Single Electronic Format) (the “Delegated
Regulation”) to the consolidated financial statements as of December 31, 2024, to be included in the
annual financial report.
We have performed the procedures under the auditing standard SA Italia n. 700B, in order to express
an opinion on the compliance of the consolidated financial statements as at December 31, 2024 with
the provisions of the Delegated Regulation.
In our opinion, the consolidated financial statements as at December 31, 2024 have been prepared in
the XHTML format and have been marked-up, in all material aspects, in compliance with the
provisions of the Delegated Regulation.
Due to certain technical limitations, some information included in the notes to the consolidated
financial statements when extracted from the XHTML format to an XBRL instance may not be
reproduced in an identical manner with respect to the corresponding information presented in the
consolidated financial statements in XHTML.
Opinion and statement pursuant to article 14, paragraph 2, subparagraph e), e-bis)
and e-ter) of Legislative Decree n. 39 dated 27 January 2010 and pursuant to
article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998
The Directors of TIM S.p.A. are responsible for the preparation of the Report on Operations and of the
Report on Corporate Governance and Ownership Structure of Group TIM as at December 31, 2024,
including their consistency with the related consolidated financial statements and their compliance
with the applicable laws and regulations.
We have performed the procedures required under audit standard SA Italia n. 720B, in order to:
express an opinion on the consistency of the Report on Operations and of specific
information included in the Report on Corporate Governance and Ownership Structure as
provided for by article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February
1998, with the consolidated financial statements;
express an opinion of the compliance with the laws and regulations of the Report on
Operations, excluding the section related to the consolidated sustainability information, and
the above mentioned specific information included in the Report on Corporate Governance
and Ownership Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n.
58, dated 24 February 1998;
issue a statement on any material misstatement in the Report on Operations and in certain
specific information contained in the Report on Corporate Governance and Ownership
Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24
February 1998.
In our opinion, the Report on Operations and the specific information contained in the Report on
Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of
Legislative Decree n. 58, dated 24 February 1998, are consistent with the consolidated financial
statements of TIM Group as at December 31, 2024.
Furthermore, in our opinion, the Report on Operations, excluding the section related to the
consolidated sustainability information, and the specific information contained in the Report on
Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of
Legislative Decree n. 58, dated 24 February 1998, comply with the applicable laws and regulations.
With reference to the statement required by art. 14, paragraph 2, subparagraph e-ter), of Legislative
Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and
its environment obtained through our audit, we have no matters to report.
Our opinion on compliance with applicable laws and regulations does not extend to the section of the
Report on Operations related to consolidated sustainability information. The conclusion on the
compliance of this section with the applicable standards governing its preparation criteria and the
compliance with the disclosure requirements pursuant to article 8 of (EU) Regulation 2020/852 are
formulated by us in the attestation report pursuant to article 14-bis of Legislative Decree No. 39
dated 27 January 2010.
Turin, March 24, 2025
EY S.p.A.
Signed by: Ettore Abate, Auditor
As disclosed by the Directors, the accompanying consolidated financial statements of TIM S.p.A.
constitute a non-official version which is not compliant with the provisions of the Commission
Delegated Regulation (EU) 2019/815. This independent auditor’s report has been translated into the
English language solely for the convenience of international readers. Accordingly, only the original
text in Italian language is authoritative.
STATEMENTS
SEPA
RATE
TIM
CONTENTS
TIM S.p.A. SEPARATE FINANCIAL STATEMENTS
Statements of Financial Position ........................................................ 425
Separate Income Statements .............................................................. 427
Statements of Comprehensive Income .............................................. 428
Statements of Changes in Equity ........................................................ 429
Statements of Cash Flows .................................................................... 430
Note 1 Form, content and other general information ..............................................................
432
Note 2 Accounting Policies ............................................................................................................
434
Note 3 Goodwill ...............................................................................................................................
446
Note 4 Intangible assets with a finite useful life ........................................................................
448
Note 5 Property, plant and equipment ........................................................................................
451
Note 6 Rights of use assets ...........................................................................................................
453
Note 7 Investments
.........................................................................................................................
455
Note 8 Non-current and current financial assets ......................................................................
458
Note 9 Miscellaneous receivables and other non-current assets ...........................................
460
Note 10 Income tax expense (current and deferred) ................................................................
462
Note 11 Inventories .........................................................................................................................
466
Note 12 Trade and miscellaneous receivables and other current assets ..............................
466
Note 13 Discontinued operations/Non-current assets held for sale .......................................
470
Note 14 Equity .................................................................................................................................
473
Note 15 Financial liabilities (non-current and current) .............................................................
477
Note 16 Net financial debt .............................................................................................................
483
Note 17 Financial risk management ............................................................................................
485
Note 18 Derivatives .........................................................................................................................
489
Note 19 Supplementary disclosures on financial instruments ................................................
492
Note 20 Employee benefits ...........................................................................................................
497
Note 21 Provisions ...........................................................................................................................
499
Note 22 Miscellaneous payables and other non-current liabilities .........................................
500
Note 23 Trade and miscellaneous payables and other current liabilities ..............................
501
Note 24 Disputes and pending legal actions, other information, commitments and
guarantees .......................................................................................................................................
503
Note 25 Revenues ...........................................................................................................................
518
Note 26 Other income ....................................................................................................................
518
Note 27 Acquisition of goods and services .................................................................................
519
Note 28 Employee benefits expenses .........................................................................................
520
Note 29 Other operating expenses ..............................................................................................
521
Note 30 Change in inventories ......................................................................................................
521
Note 31 Internally generated assets ............................................................................................
521
Note 32 Depreciation and amortization ......................................................................................
522
Note 33 Gains/(losses) on disposals of non-current assets .....................................................
523
Note 34 Impairment reversals (losses) on non-current assets
................................................
523
Note 35 Income/(expense) from investments ...........................................................................
524
Note 36 Finance income and expenses ......................................................................................
525
Note 37 Related-party transactions .............................................................................................
527
Note 38 Equity compensation plans ............................................................................................
548
Note 39 Significant non-recurring events and transactions ....................................................
550
Note 40 Positions or transactions resulting from atypical and/or unusual operations .......
552
Note 41 Other information ............................................................................................................
552
Note 42 Events after December 31, 2024 ...................................................................................
555
Note 43 List of investments in subsidiaries, associates and joint ventures
...........................
556
STATEMENTS OF FINANCIAL POSITION
Assets
(euros)
note
s
12/31/2024
of which with
related parties
12/31/2023
of which with
related parties
Non-current assets
Intangible assets
Goodwill
3 )
8,813,746,000
12,063,469,183
Intangible assets with a finite
useful life
4 )
3,957,667,705
4,578,957,442
12,771,413,705
16,642,426,625
Tangible assets
5 )
Property, plant and equipment
owned
1,720,965,830
6,561,464,614
Rights of use assets
6 )
1,512,686,403
18,931,000
3,270,484,717
154,407,000
Other non-current assets
Investments
7 )
7,433,825,513
10,902,395,052
Non-current financial receivables
arising from lease contracts
8)
14,461,801
9,597,000
6,237,932
700,000
Other non-current financial
assets
8)
1,578,610,214 1,106,271,000
3,886,198,407
3,121,389,000
Miscellaneous receivables and
other non-current assets
9)
1,551,597,641
154,610,000
1,794,904,658
301,830,000
Deferred tax assets
10)
299,318,138
405,800,781
10,877,813,307
16,995,536,830
Total Non-current assets
(a)
26,882,879,245
43,469,912,786
Current assets
Inventories
11)
147,970,346
197,573,793
Trade and miscellaneous
receivables and other current
assets
12)
3,138,672,395
499,243,000
4,560,827,085
1,324,660,000
Current income tax receivables
10)
48,145,130
42,088,505
Investments
Current financial assets
Current financial receivables
arising from lease contracts
25,567,202
25,982,000
67,810,292
1,465,000
Securities other than
investments, other financial
receivables and other current
financial assets
446,769,038
411,903,000
1,032,474,037
462,769,000
Cash and cash equivalents
819,532,528
87,490,000
598,149,745
38,187,000
8)
1,291,868,768
1,698,434,074
Total Current assets
(b)
4,626,656,639
6,498,923,457
Total Assets
(a+b)
31,509,535,884
49,968,836,243
Separate financial statements of
TIM S.p.A.
Statements of Financial Position
425
Equity and Liabilities
(euros)
note
31.12.2024
di cui con parti
correlate
31.12.2023
di cui con parti
correlate
Equity
14)
Share capital issued
11,677,002,855
11,677,002,855
less: Treasury shares
(52,729,749)
(57,442,495)
Share capital
11,624,273,106
11,619,560,360
Additional paid-in capital
—
575,673,347
Legal reserve
1,915,709,471
2,335,400,571
Other reserves
Reserve for remeasurements
of employee defined benefit
plans (IAS 19)
(60,156,948)
(72,960,270)
Other
(134,827,868)
(306,065,772)
Total Other reserves
(194,984,816)
(379,026,042)
Retained earnings
(accumulated losses),
including profit (loss) for the
year
(1,242,499,280)
(995,364,448)
Total Equity
(c)
12,102,498,481
13,156,243,788
Non-current liabilities
Non-current financial
liabilities for financing
contracts and others
15)
7,364,513,135
2,438,919,000
18,094,374,819
4,619,413,000
Non-current financial
liabilities for lease contracts
15)
644,120,072
16,245,000
2,710,085,065
21,378,000
Employee benefits
20)
163,334,112
471,484,414
Deferred tax liabilities
10)
Provisions
21)
199,009,826
254,410,281
Miscellaneous payables and
other non-current liabilities
22)
699,130,796
1,081,000
1,047,472,729
31,815,000
Total Non-current liabilities
(d)
9,070,107,941
22,577,827,308
Current liabilities
Current financial liabilities for
financing contracts and
others
15)
4,824,628,385
1,617,767,000
5,982,984,808
1,894,370,000
Current financial liabilities for
lease contracts
15)
231,238,416
3,616,000
467,242,905
38,276,000
Trade and miscellaneous
payables and other current
liabilities
23)
5,281,062,661
465,360,000
7,784,537,434
875,597,000
Current income tax payables
10)
—
—
Total Current Liabilities
(e)
10,336,929,462
14,234,765,147
Total Liabilities
(f=d+e)
19,407,037,403
36,812,592,455
Total Equity and Liabilities
(c+f)
31,509,535,884
49,968,836,243
Separate financial statements of
TIM S.p.A.
Statements of Financial Position
426
SEPARATE INCOME STATEMENTS
(euros)
note
s
Esercizio
2024
of which with
related parties
Esercizio
2023
of which with
related parties
Revenues
25)
9,218,214,372
392,496,000
8,967,239,327
239,293,000
Other income
26)
232,817,071
36,975,000
129,813,145
26,000,000
Total operating revenues and other
income
9,451,031,443
9,097,052,472
Acquisition of goods and services
27)
(6,134,825,583)
(1,383,631,000)
(5,329,743,409)
(1,652,443,000)
Employee benefits expenses
28)
(910,119,365)
(52,048,000)
(1,352,113,455)
(48,833,000)
Other operating expenses
29)
(233,725,052)
(553,000)
(367,105,055)
(3,000)
Change in inventories
30)
13,572,209
(12,000,517)
Internally generated assets
31)
143,816,045
163,124,120
Operating profit (loss) before
depreciation and amortization,
capital gains (losses) and impairment
reversals (losses) on non-current
assets (EBITDA)
2,329,749,697
2,199,214,156
of which: impact of non-recurring items
39)
(97,120,000)
(632,989,000)
Depreciation and amortization
32)
(1,647,128,845)
(4,918,000)
(1,638,620,931)
(4,400,000)
Gains (losses) on disposals of non-
current assets
33)
(6,233,727)
(16,525,562)
Impairment reversals (losses) on non-
current assets
34)
(14,225,059)
(156,927)
Operating profit (loss) (EBIT)
662,162,066
543,910,736
of which: impact of non-recurring items
39)
(93,952,000)
(631,431,000)
Income/(expenses) from investments
35)
(270,757,383)
13,156,000
910,574,690
1,084,826,000
Finance income
36)
1,003,197,187
485,849,000
997,664,382
528,784,000
Finance expenses
36)
(1,939,951,919)
(674,633,000)
(2,066,101,233)
(645,342,000)
Profit (loss) before tax from
continuing operations
(545,350,049)
386,048,575
of which: impact of non-recurring items
39)
(93,271,000)
(680,254,000)
Income tax expense
10)
(30,912,426)
46,161,185
Profit (loss) from continuing
operations
(576,262,475)
432,209,760
Profit (loss) from Discontinued
operations / Non current assets held
for sale
13)
(666,236,805)
232,909,000
(1,427,574,209)
497,025,000
Profit (loss) for the year
(1,242,499,280)
(995,364,449)
of which: impact of non-recurring items
39)
37,983,000
(673,346,000)
Separate financial statements of
TIM S.p.A.
Separate Income Statements
427
STATEMENTS OF COMPREHENSIVE INCOME
Note 14
(euros)
Esercizio
2024
Year
2023
Profit (loss) for the year
(a)
(1,242,499,280)
(995,364,448)
Other components of the Statements of Comprehensive Income
Other components that will not be reclassified subsequently to
Separate Income Statements
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
8,918,899
2,505,980
Income tax effect
(114,361)
(40,455)
(b)
8,804,538
2,465,525
Remeasurements of employee defined benefit plans (IAS 19):
Actuarial gains (losses)
12,803,322
(7,531,530)
Income tax effect
—
—
(c)
12,803,322
(7,531,530)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Income tax effect
—
—
(d)
—
—
Total other components that will not be reclassified subsequently to
Separate Income Statements
(e=b+c+d)
21,607,860
(5,066,005)
Other components that will be reclassified subsequently to Separate
Income Statements
Financial assets measured at fair value through other comprehensive
income:
Profit (loss) from fair value adjustments
1,494,641
3,763,077
Loss (profit) transferred to the Separate Income Statements
—
—
Income tax effect
(358,714)
(903,139)
(f)
1,135,927
2,859,938
Hedging instruments:
Profit (loss) from fair value adjustments
252,746,819
(237,337,146)
Loss (profit) transferred to the Separate Income Statements
(36,317,301)
100,158,258
Income tax effect
(51,943,084)
32,922,933
(g)
164,486,434
(104,255,955)
Share of other comprehensive income (loss) of associates and joint
ventures accounted for using the equity method:
Profit (loss)
—
—
Loss (profit) transferred to the Separate Income Statements
—
—
Income tax effect
—
—
(h)
—
—
Total other components that will be reclassified subsequently to
Separate Income Statements
(i= f+g+h)
165,622,361
(101,396,017)
Total other components of the Statements of Comprehensive Income
(k= e+i)
187,230,221
(106,462,022)
Total comprehensive income (loss) for the year
(a+k)
(1,055,269,059)
(1,101,826,470)
Separate financial statements of
TIM S.p.A.
Statements of Comprehensive Income
428
STATEMENTS OF CHANGES IN EQUITY
Changes in Equity from January 1 to December 31, 2023
(euros)
Share capital
Additional paid-in
capital
Reserve for
financial assets
measured through
fair value
adjustment
through other
comprehensive
income
Reserve for
hedging
instruments
Reserve for
remeasurements
of employee
defined benefit
plans (IAS 19)
Other reserves and
retained earnings
(accumulated
losses), including
profit (loss) for the
year
Total Equity
Balance at
December 31, 2022
11,613,611,883
2,133,374,023
(1,972,047)
(222,921,018)
(65,428,740)
795,605,019
14,252,269,120
Changes in equity
during the year:
Total
comprehensive
income (loss) for the
year
5,325,463
(104,255,955)
(7,531,530)
(995,364,448)
(1,101,826,470)
Equity instruments
1,739,200
1,739,200
Other changes
40,463
40,463
Balance at
December 31, 2023
11,619,560,360
575,673,347
3,353,416
(327,176,973)
(72,960,270)
1,357,793,908
13,156,243,788
Changes in Equity from January 1 to December 31, 2024 – Note 14
(euros)
Share capital
Additional paid-in
capital
Reserve for
financial assets
measured at fair
value through other
comprehensive
income
Reserve for
hedging
instruments
Reserve for
remeasurements
of employee
defined benefit
plans (IAS 19)
Other reserves and
retained earnings
(accumulated
losses), including
profit (loss) for the
year
Total Equity
Balance at
December 31, 2023
11,619,560,360
575,673,347
3,353,416
(327,176,973)
(72,960,270)
1,357,793,908
13,156,243,788
Changes in equity
during the year:
Coverage of prior
year loss
(575,673,347)
575,673,347
—
Total
comprehensive
income (loss) for the
year
9,940,466
164,486,434
12,803,322
(1,242,499,280)
(1,055,269,059)
Treasury shares
servicing the Long
Term Incentive Plan
2021-2023
4,712,746
12,490,072
17,202,818
Equity instruments
(15,723,049)
(15,723,049)
Other changes
—
43,982
43,982
Balance at
December 31, 2024
11,624,273,106
—
13,293,882
(162,690,539)
(60,156,948)
687,778,980
12,102,498,480
Separate financial statements of
TIM S.p.A.
Statements of Changes in Equity
429
STATEMENTS OF CASH FLOWS
(euros)
note
s
Year
2024
Year
2023
Cash flows from operating activities:
Profit (loss) for the year from continuing operations
(576,262,474)
432,209,760
Adjustments for:
Depreciation and amortization
31)
1,647,128,846
1,638,620,931
Impairment losses (reversals) on non-current assets including
investments
325,999,000
161,400,000
Net change in deferred tax assets and liabilities
32,271,000
89,919,000
Losses (gains) realized on disposals of non-current assets
(including investments)
(19,423,000)
31,202,000
Change in employee benefits
(9,762,000)
(262,173,000)
Change in inventories
(12,204,000)
15,751,000
Change in trade receivables
219,345,000
11,634,000
Change in trade payables
(175,000)
59,991,000
Net change in income tax receivables/payables
(4,816,000)
(8,255,000)
Net change in miscellaneous receivables/payables and other
assets/liabilities
(193,047,673)
161,070,752
Cash flows from (used in) operating activities
(a)
1,409,053,699
2,331,370,443
Cash flows from investing activities:
Purchases of intangible, tangible and rights of use assets on a cash
basis
(920,522,000)
(1,030,842,000)
Contributions for plants received
7,200,000
758,755,000
Acquisition of control of companies or other businesses, net of cash
acquired
—
—
Proceeds from sale that result in a loss of control of subsidiaries or
other businesses, net of cash disposed of
7)
4,169,227,000
—
Acquisitions/disposals of other investments
(53,208,000)
(32,752,000)
Change in financial receivables and other financial assets (excluding
hedging and non-hedging derivatives under financial assets)
2,503,908,000
(1,330,256,000)
Proceeds from sale/repayments of intangible, tangible, rights of use
assets and other non-current assets
271,080,000
(534,000)
Other changes in non-current assets (tangible/intangible/rights of
use/investments/securities)
2,000
1,000
Cash flows from (used in) investing activities
(b)
5,977,687,000
(1,635,628,000)
Cash flows from financing activities
Change in current financial liabilities and other
(246,056,000)
464,680,000
Proceeds from non-current financial liabilities (including current
portion)
2,000,004,000
3,110,063,000
Repayments of non-current financial liabilities (including current
portion)
(7,944,895,000)
(3,733,528,000)
Changes in hedging and non-hedging derivatives
(84,757,000)
90,795,000
Share capital proceeds/reimbursements
—
—
Dividends paid (*)
(2,000)
(3,000)
Changes in ownership interests in subsidiaries
—
—
Cash flows from (used in) financing activities
(c)
(6,275,706,000)
(67,993,000)
Cash flows from (used in) discontinued operations/non-current
assets held for sale
(d)
(1,174,454,000)
(1,251,539,000)
Aggregate cash flows
(e=a+b+c
+d)
(63,419,301)
(623,789,557)
Net cash and cash equivalents at beginning of the year
(f)
(264,769,020)
359,020,537
Net cash and cash equivalents at end of the year
(g=e+f)
(328,188,321)
(264,769,020)
(*) of which from related parties
—
—
Separate financial statements of
TIM S.p.A.
Statements of Cash Flows
430
Purchase of intangible, tangible and rights of use assets
(euros)
note
s
Year
2024
Year
2023
Purchase of intangible assets
4)
(511,081,000)
(546,212,000)
Purchase of tangible assets
5)
(475,767,000)
(526,572,000)
Purchase of right of use assets
6)
(248,169,000)
(117,285,000)
Total purchases of intangible, tangible and rights of use assets on an
accrual basis (*)
(1,235,017,000)
(1,190,069,000)
Change in payables arising from purchase of intangible, tangible and rights
of use assets
314,495,000
159,227,000
Total purchases of intangible, tangible and rights of use assets on a cash
basis
(920,522,000)
(1,030,842,000)
(*) of which from related parties
(36,114,000)
(62,744,000)
Additional Cash Flow information
(euros)
Year
2024
Year
2023
Income taxes (paid) received
143,285,000
103,778,000
Interest expense paid
(1,597,025,000)
(1,674,150,000)
Interest income received
644,602,000
749,274,000
Dividends received
15,347,000
1,086,534,000
Analysis of Net Cash and Cash Equivalents
(euros)
Year
2024
Year
2023
Net cash and cash equivalents at beginning of the year:
Cash and cash equivalents
598,149,745
1,375,042,603
Bank overdrafts repayable on demand
(862,918,765)
(1,016,022,066)
(264,769,020)
359,020,537
Net cash and cash equivalents at end of the year:
Cash and cash equivalents
819,532,528
598,149,745
Bank overdrafts repayable on demand
(1,147,720,849)
(862,918,765)
(328,188,321)
(264,769,020)
The additional disclosures required by IAS 7 are provided in the Note “Net financial debt” to these Separate
Financial Statements.
Separate financial statements of
TIM S.p.A.
Statements of Cash Flows
431
NOTE 1
FORM, CONTENT AND OTHER GENERAL
INFORMATION
Form and content
Telecom Italia, TIM in brief, is a joint-stock company (S.p.A.) organized under the laws of the Republic of Italy.
The registered offices of TIM S.p.A. are located in Milan, Italy, at Via Gaetano Negri 1.
The duration of TIM S.p.A., as stated in the company’s bylaws, extends until December 31, 2100.
TIM S.p.A. operates in Italy in the fixed and mobile telecommunications sector.
The TIM S.p.A. separate financial statements at December 31, 2024 have been prepared on a going concern
basis (further details are provided in the Note “Accounting Policies”) and in accordance with the International
Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the
European Union (designated as “IFRS”), as well as laws and regulations in force in Italy.
In 2024, TIM S.p.A. adopted accounting policies consistent with those of the previous year, except for the
changes to the accounting standards issued by the IASB and in force as of January 1, 2024. See the Note
“Accounting Policies” for more details.
The separate financial statements have been prepared under the historical cost convention except for financial
assets measured at fair value through other comprehensive income, financial assets measured at fair value
through profit or loss and derivative financial instruments which have been measured at fair value. The
carrying amounts of hedged assets and liabilities have been adjusted to reflect the changes in fair value of the
hedged risks (fair value hedge).
It should also be noted that the economic results ofTIM's fixed network assets (primary network and wholesale
business), the sale of which was finalized on July 1, 2024, are classified under IFRS 5 as Available-for-sale
Assets, as all the conditions, including obtaining authorizations, necessary for the completion of the sale have
been met.
In accordance with IAS 1 (Presentation of Financial Statements) comparative information included in the
consolidated financial statements refers, unless otherwise indicated, to the previous year.
In addition, the classification of TIM’s fixed network (primary network and wholesale business) as an Available-
for-sale Asset has led to a reclassification of the corresponding figures for 2023 in the separate income
statement and in the cash flow statement, as required by IFRS 5. In addition, as permitted by IFRS 5, the profit
and loss and balance sheet totals relating to continuing operations also include the values of any held-for-sale
assets.
Finally, it should be noted that the effects arising from the sale of the primary network and wholesale business
are shown separately in the 2024 changes in balance sheet items ("Discontinued Operations"). For further
details regarding the aforementioned divestment transaction, please refer to what is described in Note 13
"Discontinued operations/non-current assets held for sale."
The statements of financial position, the separate income statements, the statements of comprehensive
income, the statements of changes in equity and the statements of cash flows are presented in euros (without
cents) and the notes to these separate financial statements in millions of euros, unless otherwise indicated.
The publication of TIM S.p.A.’s separate financial statements for the year ended December 31, 2024 was
approved by resolution of the Board of Directors on March 5, 2025.
However, final approval of the TIM S.p.A. separate financial statements rests with the shareholders’ meeting.
Financial statement formats
The financial statement formats adopted are consistent with those indicated in IAS 1. More specifically:
■
the statements of financial position have been prepared by classifying assets and liabilities according to
the “current and non-current” criterion;
■
the separate income statements have been prepared by classifying operating costs by nature of expense,
as this form of presentation is considered more appropriate and representative of the specific business of
the Company, conforms to internal reporting and is in line with industry practice.
In addition to EBIT or Operating profit (loss), the separate income statements include the alternative
performance measure of EBITDA or Operating profit (loss) before depreciation and amortization, Capital
gains (losses) and Impairment reversals (losses) on non-current assets.
In particular, besides EBIT, EBITDA is used by TIM as the financial target in internal presentations (business
plans) and in external presentations (to analysts and investors). It represents a useful unit of measurement
for the evaluation of the operating performance of TIM S.p.A. EBIT and EBITDA are calculated as follows:
Separate financial statements of
TIM S.p.A.
Note 1
Form, content and other general information
432
Profit (loss) before tax from continuing operations
+
Finance expenses
-
Finance income
+/-
Income (Expenses) from investments
EBIT – Operating profit (loss)
+/-
Impairment losses (reversals) of non-current assets
+/-
c) Capital losses (gains) from non-current assets
+
Depreciation and amortization
EBITDA - Operating profit (loss) before depreciation and amortization, capital gains (losses) and impairment reversals
(losses) on non-current assets
■
the statements of comprehensive income include the profit or loss for the year as shown in the separate
income statements and all other non-owner changes in equity;
■
the statement of cash flows has been prepared by presenting cash flows from operating activities
according to the "indirect method", as permitted by IAS 7 (Statement of Cash Flows).
Furthermore, as required by Consob Resolution 15519 of July 27, 2006, in the separate income statement,
income and expenses relating to transactions, which by nature do not occur during normal operation (non-
recurring transactions) have been specifically identified and their impact has been shown separately, when
they are significant. Specifically, non-recurring income/(expenses) include, for instance: income/expenses
arising from the sale of property, plant and equipment, business segments and investments; expenses
stemming from company reorganization and streamlining processes and projects, also in connection with
corporate transactions (mergers, spin-offs, etc.); expenses resulting from litigation and regulatory sanctions
and related liabilities; other provisions and related reversals; costs for the settlement of disputes other than
regulatory disputes; adjustments, realignments and other non-recurring items, also relating to previous years;
impairment losses on goodwill and/or other intangible and tangible assets.
Also in reference to the above Consob Resolution, the amounts relating to balances or transactions with
related parties have been shown separately in the financial statements.
Separate financial statements of
TIM S.p.A.
Note 1
Form, content and other general information
433
NOTE 2
ACCOUNTING POLICIES
Going concern
The Separate Consolidated Financial Statements 2024 have been prepared on a going concern basis, as there
is the reasonable expectation that TIM S.p.A. will continue conducting its business in the foreseeable future
(and, in any event, over a period of at least twelve months).
In particular, the following factors have been taken into consideration:
■
the main risks and uncertainties (that are for the most part of an external nature) to which TIM is exposed:
•
variations in business conditions, also related to competition;
•
technological risks such as cyber security, ICT network development and maintenance, artificial
intelligence;
•
financial risks (interest rate and/or exchange rate trends, changes in the Group’s credit rating by rating
agencies);
•
macroeconomic changes in the Italian, European and Brazilian markets and financial market volatility
due to inflationary risks;
•
risks in the supply chain of products and services including the exclusive wholesale supply of
connectivity by the supplier FiberCop;
•
changes in the legislative and regulatory context (changes in prices and tariffs or decisions that may
influence technological choices); and
•
the outcome of the legal and regulatory authority proceedings;
■
the optimal mix between risk capital and debt capital, as well as the policy for the remuneration of risk
capital, as described in the section “Share capital information” under the Note “Equity”;
■
the policy for financial risk management (market risk, credit risk and liquidity risk), as described in the Note
"Financial risk management".
Based on these factors, the Management believes that, at the present time, there are no elements of
uncertainty regarding TIM S.p.A.’s ability to continue as a going concern.
Intangible assets
Goodwill
In accordance with IFRS 3 (Business Combinations), goodwill is recognized in the financial statements at the
acquisition date (including through mergers or contributions) of companies or business units and is calculated
as the difference between the consideration paid (measured in accordance with IFRS 3, generally determined
on the basis of the fair value at the acquisition date) and the fair value at the acquisition date of the
identifiable assets acquired net of the identifiable liabilities assumed.
Goodwill is classified in the statements of financial position as an intangible asset with an indefinite useful life,
whereas any gain from a bargain purchase or negative goodwill is recognized in the separate income
statement.
Goodwill initially recognized is subsequently reduced only by cumulative impairment losses (for more details,
see the section "Impairment of intangible assets, tangible assets and rights of use assets - Goodwill", below).
Development costs
Costs incurred internally for the development of new products and services represent either intangible assets
(mainly costs for software development) or tangible assets. These costs are capitalized only when all the
following conditions are satisfied: i) the cost attributable to the development phase of the asset can be
measured reliably, ii) there is the intention, the availability of financial resources and the technical ability to
complete the asset and make it available for use or sale, and iii) it can be demonstrated that the asset will be
able to generate future economic benefits. Capitalized development costs comprise only incurred expenditures
that can be attributed directly to the development process for new products and services.
Capitalized development costs are depreciated/amortized systematically over the estimated product or service
life, so that the depreciation/amortization method reflects the way in which the asset's future economic
benefits are expected to be consumed by the entity.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
434
Other intangible assets with a finite useful life
Other purchased or internally-generated intangible assets with a finite useful life are recognized as assets, in
accordance with IAS 38 (Intangible Assets), when the use of the asset is likely to generate future economic
benefits and when the cost of the asset can be reliably measured.
Such assets are recorded at purchase or production cost and amortized on a straight-line basis over their
estimated useful lives; the amortization rates are reviewed annually and revised if the current estimated useful
life is different from that estimated previously. The effect of such changes is recognized in the separate income
statements prospectively.
Tangible assets
Property, plant and equipment
Property, plant and equipment are recognized at purchase or production cost. Subsequent expenditures are
capitalized only if they increase the future economic benefits embodied in the related item of property, plant
and equipment. All other expenditures are expensed as incurred.
The cost of these assets also includes the expected costs of dismantling the asset and restoring the site, if a
legal or constructive obligation exists. The corresponding liability is recognized at its present value as a
provision in the statement of financial position. These capitalized costs are depreciated and charged to the
separate income statements over the useful life of the related tangible assets.
The calculation of estimates for dismantling costs, discount rates and the dates in which such costs are
expected to be incurred is reviewed annually at each financial year-end. Changes in the above liability must be
recognized as an increase or decrease of the cost of the related asset; the amount deducted from the cost of
the asset must not exceed its carrying amount. The excess if any, should be recorded immediately in the
separate income statements, conventionally under the line item "Depreciation and Amortization".
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Depreciation
rates are reviewed annually and revised if the current estimated useful life is different from that estimated
previously. The effect of such changes is recognized in the separate income statements prospectively.
Land, including land pertaining to buildings, is not depreciated.
Rights of use assets
In accordance with IFRS 16, lease liabilities are presented through the recognition of a financial liability in the
statement of financial position consisting in the present value of future lease payments, against the
recognition of the right of use of the leased asset.
On the commencement date of the lease, the right of use is recognized at cost including: the amount of the
initial measurement of the lease liability, any lease payments made at or before the commencement date,
initial direct costs incurred for the signature of the lease and the present value of the estimated restoration
and dismantling costs set out in the lease, less any incentives.
Subsequently, the right of use is amortized over the term of the lease (or the useful life of the asset, if lower),
subject to impairment and adjusted for any remeasurement of the lease liability.
The TIM Group attracts, under the scope of application of IFRS 16, if the criteria and the requirements laid down
by the standard are met, the contract types concerning cloud software resources and the spectrum of
transmission frequencies on optic fiber carriers. This approach is functional to the very innovative specificity of
these types of contract, concerning hardware infrastructure and optical transmission as well as
technologically-advanced software services.
Impairment of intangible, tangible and rights of use assets
Goodwill
Goodwill is tested for impairment at least annually or more frequently whenever events or changes in
circumstances indicate that goodwill may be impaired, as set forth in IAS 36 (Impairment of Assets); however,
when the conditions that gave rise to an impairment loss no longer exist, the original amount of goodwill is not
reinstated.
The test is generally conducted at the end of every year, so the date of testing is the year-end closing date of
the financial statements. Goodwill acquired and allocated during the year is tested for impairment at the end
of the year in which the acquisition and allocation took place.
For the purpose of verifying its recoverability, goodwill is allocated, from the acquisition date, to each of the
cash-generating units, or groups of cash-generating units, that is expected to benefit from the acquisition.
If the carrying amount of the cash-generating unit (or group of cash-generating units) exceeds the recoverable
amount, an impairment loss is recognized in the separate income statement. The impairment loss is first
recognized as a deduction of the carrying amount of goodwill allocated to the cash-generating unit (or group
of cash-generating units) and only subsequently applied to the other assets of the cash-generating unit in
proportion to their carrying amount, up to the recoverable amount of the assets with a finite useful life. The
recoverable amount of a cash-generating unit (or group of cash-generating units) to which goodwill is
allocated is the higher between the fair value less costs to sell and its value in use.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
435
The fair value net of disposal costs is estimated on the basis of the income approach, insofar as this allows for
the reflection of the benefits deriving from a new, different business structure in the future. In particular, the
fair value net of disposal costs is based on the current value of the forecast cash flow, applying a discounting
rate that reflects current market assessments of the time value of money and the risks specific to the asset.
The future cash flows are those arising from an explicit time horizon between three and five years, as well as
those extrapolated to estimate the terminal value.
In calculating the value in use, the estimated future cash flows are discounted to present value using a
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. The future cash flows are those arising from an explicit time horizon between three and five years, as
well as those extrapolated to estimate the terminal value. The long-term growth rate used to estimate the
terminal value of the cash-generating unit (or group of cash-generating units) is assumed not to be higher
than the average long-term growth rate of the segment or market in which the cash-generating unit (or group
of cash-generating units) operates.
Future cash flows are estimated by referring to the current operating conditions of the cash-generating unit (or
group of cash-generating units) and, therefore, do not include either benefits originating from future
restructuring for which the entity is not yet committed, or future investments for the improvement or
optimization of the cash-generating unit.
For the purpose of calculating impairment, the carrying amount of the cash-generating unit is established
based on the same criteria used to determine the recoverable amount of the cash-generating unit, excluding
surplus assets (that is, financial assets, deferred tax assets and net non-current assets held for sale).
After conducting the goodwill impairment test for the cash-generating unit (or groups of cash-generating
units), a second level of impairment testing is carried out which includes the corporate assets which do not
generate positive cash flows and which cannot be allocated by a reasonable and consistent criterion to the
single units. At this second level, the total recoverable amount of all cash-generating units (or groups of cash-
generating units) is compared to the carrying amount of all cash-generating units (or groups of cash-
generating units), including also those cash-generating units to which no goodwill was allocated, and the
corporate assets.
Tangible and intangible assets with finite useful lives and rights of use
assets
At the end of each reporting period, the Company assesses whether there is any indication that an asset –
whether tangible or intangible with finite useful lives or a right of use – may be impaired. Both internal and
external sources of information are used for this purpose. Internal sources include: obsolescence or physical
deterioration, and significant changes in the use of the asset and the operating performance of the asset
compared to estimated performance. External sources include: External sources include the market value of
the asset, changes in technology, markets or laws, trend in market interest rates and the cost of capital used
to evaluate investments, and an excess of the carrying amount of the net assets of the Company over market
capitalization.
If there is any indication that an asset – whether tangible or intangible with finite useful lives or a right of use –
has been impaired, then its carrying amount is reduced to its recoverable amount. The recoverable amount is
the higher of an asset's fair value less costs to sell, and its value in use. In calculating the value in use, the
estimated future cash flows are discounted to present value using a discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or right. Where it is not possible to
estimate the recoverable amount, the Company estimates the recoverable amount of the cash-generating
unit to which the asset belongs. Impairment losses are recognized in the separate income statement.
When the reasons for the impairment subsequently cease to exist, the carrying value of the asset/ right of use
or of the cash generating unit is increased up to the new estimate of the recoverable amount which, however,
cannot exceed the amount that would have been determined had no impairment loss been recognized. The
reversal of an impairment loss is recognized as income in the separate income statements.
Financial instruments
Business models for financial assets management
For the management of trade receivables, the Company’s Management has identified different business
models based on the specific nature of the receivables, the type of counterparty and collection times. This was
in order to optimize the management of working capital through the constant monitoring of the payment
performance of customers, the steering of credit collection policies, and the management of programs for the
disposal of receivables,
and the activation of factoring consistent with financial planning requirements.
The business models adopted are:
■
Hold to Collect: receivables usually held to maturity, such as trade receivables due from large customers
and the OLOs; these instruments fall within IFRS 9 category “Assets measured at amortized cost”. These
receivables can be transferred, albeit not recurrently, if this is needed to optimize finances;
■
Hold to Collect and Sell: receivables usually traded massively and on a recurring basis, such as receivables
due from active consumer, small and business customers held for sale; these instruments fall under IFRS 9
category “Financial assets measured at fair value through other comprehensive income”. As required by
IFRS 9, the related reserve is reversed to the separate income statements when disposed of or impaired.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
436
As part of managing financial assets other than trade receivables, Company Management has identified its
business models on the basis of how the financial instruments are managed and how their cash flows are
used. This is done to ensure an adequate level of financial flexibility and to best manage, in terms of risks and
returns, the financial resources immediately available and in accordance with the strategies.
The Business Models adopted are the following:
■
Hold to Collect: financial instruments used to absorb temporary cash surpluses; such instruments are low
risk and mostly held to maturity; they are measured at amortized cost;
■
Hold to Collect and Sell: monetary or debt instruments used to absorb short/medium-term cash surpluses;
such instruments are low risk and generally held to maturity, or otherwise sold to cover specific cash
requirements; they are measured at fair value through other comprehensive income;
■
Hold to Sell: monetary, debt and equity trading instruments used to dynamically manage cash surpluses
not managed under the business models identified above; such instruments are higher risk and traded
repeatedly over time; they are measured at fair value through profit or loss.
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint ventures are measured at cost adjusted by impairment losses.
When there is objective evidence of an impairment, recoverability is verified by comparing the carrying amount
of the investment against its recoverable amount consisting of the greater of fair value, net of disposal costs,
and value in use.
Other investments
Other investments (other than those in subsidiaries, associates and joint ventures) are classified as non-current
or current assets if they will be kept in the Company’s portfolio for a period of more or not more than 12
months, respectively.
Other investments are classified as “financial assets measured at fair value through profit or loss” (FVTPL), as
current assets.
At the purchase time of each investment, IFRS 9 provides for the irrevocable option to recognize these
investments in "financial assets measured at fair value through other comprehensive income" (FVTOCI) as
non-current or current assets.
The other investments classified as “financial assets measured at fair value through other comprehensive
income” are measured at fair value; changes in the fair value of these investments are recognized in a special
equity reserve under the other components of the statements of comprehensive income (Reserve for financial
assets measured at fair value through other comprehensive income), without reclassification to the separate
income statements when the financial asset is disposed of or impaired. Dividends, on the other hand, are
recognized in the separate income statements.
Changes in the value of other investments classified as "financial assets at fair value through separate profit or
loss" are recognized directly in the separate income statements.
Securities other than investments
Securities other than investments, included among non-current or current assets, depending on the business
model adopted and the contractual flows envisaged, fall among financial assets measured at amortized cost,
or measured at fair value through other comprehensive income or at fair value though profit or loss.
Securities other than investments, classified as current assets, are those that, by decision of the directors, are
intended to be kept in TIM S.p.A.’s portfolio for a period of not more than 12 months, and are included:
■
as "financial assets measured at amortized cost" (AC) when held to maturity (originally more than 3
months but less than 12 months, or, although they had an original maturity of more than 12 months, they
have been bought in a period during which maturity was included between 3 and 12 months);
■
as "financial assets measured at fair value through other comprehensive income" (FVTOCI) when held in
the scope of a business model whose objective is to sell the financial asset and/or collect the contractual
flows. The "Reserve for financial assets measured at fair value through other comprehensive income" is
reversed to the separate income statements when the financial asset is disposed of or impaired;
■
as “financial assets measured at fair value through profit or loss" (FVTPL) in the other cases.
Cash and cash equivalents
Cash and cash equivalents are recorded, according to their nature, at nominal value or amortized cost.
Cash equivalents are short-term and highly liquid investments that are readily convertible to known amounts
of cash, subject to an insignificant risk of change in value and their original maturity or the remaining maturity
at the date of purchase does not exceed 3 months.
Impairment of financial assets
At every closing date, assessments are made as to whether there is any objective evidence that a financial
asset or a group of financial assets has been impaired.
The impairment of financial assets is based on the expected credit loss model.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
437
Specifically:
■
Impairment on trade receivables and on contract assets is carried out using the simplified approach that
involves estimating the loss expected over the life of the receivable at the time of initial recognition and on
subsequent measurements. For each customer segment, the estimate is principally made by calculating
the average expected uncollectibility, based on historical and statistical indicators, possibly adjusted using
forward-looking elements. For some categories of receivables characterized by specific risk elements,
specific measurements are made on individual credit positions;
■
the impairment of financial assets other than trade receivables is calculated on the basis of a general
model which estimates expected credit losses over the following 12 months or over the residual life of the
asset in the event of a substantial worsening of its credit risk.
Derivatives
As allowed by IFRS 9, the Company decided to continue to apply the hedge accounting provisions contained in
IAS 39 instead of those of IFRS 9.
Derivatives are used by the Company to manage its exposure to exchange rate and interest rate risks and to
diversify the parameters of debt so that costs and volatility can be reduced to within pre-established
operational limits.
In accordance with IAS 39, derivative financial instruments qualify for hedge accounting only when:
■
at the inception of the hedge, the hedging relationship is formally designated and documented;
■
the hedge is expected to be highly effective;
■
its effectiveness can be reliably measured;
■
the hedge is highly effective throughout the financial reporting periods for which it is designated.
All derivative financial instruments are measured at fair value in accordance with IAS 39.
When derivative financial instruments qualify for hedge accounting, the following accounting treatment
applies:
■
Fair value hedge – Where a derivative financial instrument is designated as a hedge of the exposure to
changes in fair value of an asset or liability due to a particular risk, the profit or loss from re-measuring the
hedging instrument at fair value is recognized in the separate income statement. The gain or loss on the
hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is
recognized in the separate income statement.
■
Cash flow hedge – Where a derivative financial instrument is designated as a hedge of the exposure to
variability in cash flows of an asset or liability or a highly probable expected transaction, the effective
portion of any gain or loss arising from the fair value adjustment of the derivative financial instrument is
recognized directly in a specific equity reserve (Reserve for hedging instruments). The cumulative gain or
loss is removed from equity and recognized in the separate income statements at the same time the
hedged transaction affects the separate income statement. The gain or loss associated with the ineffective
portion of a hedge is recognized in the separate income statements immediately. If the hedged transaction
is no longer probable, the cumulative gains or losses included in the equity reserve are immediately
recognized in the separate income statement.
For derivatives for which a hedging relationship has not been designated, changes in value compared to initial
recognition are recognized directly in the separate income statement.
Financial liabilities
Financial liabilities include financial payables, including payables for advances on assignments of receivables
where the assignment does not transfer substantially all the risks and rewards, as well as other financial
liabilities, including derivative financial instruments and liabilities in respect of assets recognized under finance
leases recognized in accordance with IFRS 16.
In accordance with IFRS 9, they also include trade and other payables.
Trade payables also include supplier financing agreements. For more details about these agreements, please
refer to the Note "Trade and miscellaneous payables and other current liabilities."
Financial liabilities other than derivatives are initially recognized at fair value; and subsequently measured at
amortized cost.
Financial liabilities hedged by derivative instruments designed to manage exposure to changes in fair value of
the liabilities (fair value hedge derivatives) are measured at fair value in accordance with the hedge accounting
principles of IAS 39: Gains and losses arising from re-measurement at fair value, to the extent of the hedged
component, are recognized in the separate income statements and are offset by the effective portion of the
gain or loss arising from re-measurement at fair value of the hedging instrument.
Financial liabilities hedged by derivative instruments designed to manage exposure to variability in cash flows
(cash flow hedge derivatives) are measured at amortized cost in accordance with the hedge accounting
principles of IAS 39.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
438
Transfer of receivables
TIM S.p.A. carries out sales of receivables under factoring and securitization contracts. These transfers, in the
majority of cases, are characterized by the transfer of substantially all the risks and rewards of ownership of
the receivables to third parties, therefore meeting the requirements of IFRS 9 for derecognition. Special service
agreements, under which the purchasers grant TIM S.p.A. a mandate to oversee the collection and
management of receivables, have been entered into to maintain the relationship between the Company and
its customers.
Inventories
Inventories are measured at the lower of purchase and production cost and estimated realizable value; the
cost is determined using the weighted average cost formula for each movement, while the estimated
realizable value is determined by observing general prices at the end of the year. Provision is made for obsolete
and slow-moving inventories based on their expected future use and estimated realizable value.
Non-current assets held for sale/Discontinued operations
Non-current assets held for sale or disposal groups whose carrying amount will mainly be recovered through
sale, rather than through ongoing use, are classified as held for sale and shown separately from other assets
and liabilities in the separate statements of financial position. The corresponding amounts for the previous
year are not reclassified in the statement of financial position but are instead shown separately in a specific
column in the changes in assets and liabilities in the year in which the non-current assets held for sale or the
disposal groups are classified as such.
Discontinued operations are a component of an entity that has been terminated or classified as held for sale
and that:
■
represents a major business line or geographical area of operation; or
■
is part of a single coordinated plan to discontinue a separate major line of business or geographical area of
operation; or
■
is a subsidiary acquired exclusively with a view to resale.
The results arising from Discontinued Operations – whether disposed of or classified as held for sale – are
shown separately in the separate income statement, net of tax effects. The corresponding values for the
previous periods, where present, are reclassified and reported separately in the separate income statement,
net of tax effects, for comparative purposes.
Non-current assets held for sale or discontinued groups classified as held for sale are first recognized in
compliance with the appropriate IFRS applicable to each specific asset and liability, and subsequently
measured at the lower of the carrying amount and fair value, less cost to sell.
Any subsequent impairment losses are recognized as a direct adjustment to the non-current assets or disposal
groups classified as held for sale and expensed in the separate income statement.
An upward revision of value is, instead, recognized for each subsequent increase in the fair value of an asset
less cost to sell, but not in excess of the previously recognized cumulative impairment loss.
As required by IFRS 5 (Non-current assets held for sale and discontinued operations), an entity shall not
depreciate (or amortize) non-current assets classified as held for sale or being part of a discontinued group.
Finance expenses and other expenses attributable to the liabilities of a discontinued group classified as held for
sale must continue to be recognized.
Employee benefits
Provision for employee severance indemnity
Employee severance indemnities, mandatory pursuant to Article 2120 of the Italian Civil Code, is deferred
compensation and is based on the employees’ years of service and the compensation earned by the employee
during the service period.
Under IAS 19 (Employee Benefits), the employee severance indemnity, so calculated, is considered a “Defined
benefit plan” and the related liability to be recognized in the statement of financial position (Provision for
employee severance indemnities) is determined by actuarial calculations.
The remeasurements of actuarial gains and losses are recognized in other components of the Statements of
Comprehensive Income. By contrast, the interest expenses related to the “time value” component of the
actuarial calculations are recognized in the separate income statements under financial expenses.
Starting from January 1, 2007, the Italian Law gave employees the choice to either allocate their accruing
indemnity to supplementary pension funds or it as an obligation of the Company. Companies that employ at
least 50 employees must transfer the employee severance indemnity to the "Treasury fund" managed by
INPS, the Italian Social Security Institute. Consequently, the Group's obligation to INPS and the contributions to
supplementary pension funds take the form, under IAS 19, of "Defined contribution plans".
Equity compensation plans
TIM S.p.A. provides additional benefits to certain managers of the Group companies through equity
compensation plans (for example: stock options and long-term incentive plans). The above plans are
recognized in accordance with IFRS 2 (Share-Based Payment).
In accordance with IFRS 2, such plans represent a component of the beneficiaries’ compensation. Therefore, for
the plans that provide for compensation in equity instruments, the cost is represented by the fair value of such
instruments at the grant date, and is recognized in "Employee benefits expenses", for employees of the
Company, and in "Investments", for employees of subsidiaries, over the period between the grant date and
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
439
vesting date with a contra-entry to an equity reserve denominated "Other equity instruments". Changes in the
fair value subsequent to the grant date do not affect the initial measurement. At the end of each year,
adjustments are made to the estimate of the number of rights that will vest up to maturity. An adjustment is
made to "Other equity instruments" for the impact of the change in estimate with contra-entry to "Employee
benefits expenses" or "Investments".
For the portion of the plans that provide for the payment of compensation in cash, the amount is recognized in
liabilities as a contra-entry to "Employee benefits expenses" for employees of the Company, and in
"Investments", for employees of subsidiaries; at the end of each year such liability is measured at fair value.
Provisions
The Company records provisions for risks and charges when it has a present obligation, legal or constructive, to
a third party, as a result of a past event, when it is probable that an outflow of resources will be required to
satisfy the obligation and when the amount of the obligation can be estimated reliably. Provisions for risks and
charges also include those established in the event that the company should stipulate contracts that
thereafter became onerous, the non-discretionary costs of which necessary to fulfill the commitments made
exceeding the economic benefits expected from such contracts.
If the effect of the time value is material, and the payment date of the obligations can be reasonably
estimated, provisions to be accrued are the present value of the expected cash flows, taking into account the
risks associated with the obligation. The increase in the provision due to the passage of time is recognized as
"Finance expenses".
Government grants
Government grants are recognized when there is a reasonable certainty that they will be received and that the
Company will satisfy all the conditions established for their granting by the government, government entities
and equivalent local, national or international entities.
Government grants are recognized in the separate income statement, on a straight-line basis, over the periods
in which the Company recognizes the expenses that the grants are intended to offset as costs.
Government grants related to assets received for the acquisition and/or construction of non-current tangible
assets are recorded as deferred income in the statement of financial position and systematically credited to
the separate income statements over the useful life of the systems the grants relate to.
Treasury shares
Treasury shares are recognized as a deduction from equity. In particular, the treasury shares are reported as a
deduction from the share capital issued in the amount corresponding to the "accounting par value", that is the
ratio of total share capital and the number of issued shares, while the excess cost of acquisition over the
accounting par value is presented as a deduction from "Other reserves and retained earnings (accumulated
losses), including profit (loss) for the year".
Foreign currency transactions
Transactions in foreign currencies are recorded at the foreign exchange rate prevailing at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign
exchange rate prevailing at the statement of financial position date. Exchange differences arising from the
settlement of monetary items or from their conversion at rates different from those at which they were initially
recorded during the year or at the end of the prior year, are recognized in the separate income statements.
Revenues
Revenues are the gross inflows of economic benefits during the period arising in the course of the ordinary
activities of an entity. Amounts collected on behalf of third parties such as sales taxes, goods and services
taxes and value added taxes are not economic benefits which flow to the entity and do not result in increases
in equity. Therefore, they are excluded from revenues.
The process underlying the recognition of revenues follows the steps set out in IFRS 15:
■
identification of the contract: takes place when the parties approve the contract (with commercial
substance), and identify the respective rights and obligations: in other terms, the contract must be legally
binding, the rights to receive goods and/or services and the terms of payment can be clearly identified and
the Company considers receipt of payment as probable;
■
identification of the performance obligations: the main performance obligations identified, i.e. promises
to transfer goods and services that are distinct, are services rendered (including voice and data traffic and
ICT solutions) to retail customers, services rendered to wholesale customers, and sale of products;
■
determination of the transaction price: is the total amount contracted with the other party regarding the
entire contractual term. The Company has determined that the contractual term is the one arising from
the contractual obligations between the parties or, in lack of these obligations, it is by convention one
month;
■
allocation of the transaction price to the performance obligations: the allocation is made proportionately
to the respective stand-alone selling prices calculated based on the list prices (if present) or estimated by
applying an appropriate margin to the cost of purchase/production of the good/service.
Revenues from activating the connectivity service are not a performance obligation; they are therefore
allocated to the contractual performance obligations (typically to services).
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
440
For offerings which include the sale of devices and service contracts (bundle offerings), the Company
allocates the contractual transaction price to the performance obligations of the contract, proportionately
to the stand-alone selling prices of the single performance obligations;
■
recognition of revenues: revenues are stated net of discounts, allowances, and returns in connection with
the characteristics of the type of revenue:
•
Revenues from services rendered
Revenues from services rendered are recognized in the separate income statements according to the
stage of completion of the service, that is based on actual consumption.
Traffic revenues from interconnection and roaming are reported gross of the amounts due to other
TLC operators.
Revenues for delivering information or other content are recognized on the basis of the amount
invoiced to the customer, when the service is rendered directly by the Company. In the event that the
Company is acting as agent (for example non-geographic numbers) only the commission received
from the content provider is recognized as revenue.
Revenues from prepaid traffic are recorded on the basis of effective consumption. Deferred revenues
for traffic already collected but not yet consumed are recorded in “Trade and miscellaneous payables
and other current liabilities” in the statements of financial position.
Revenues for services rendered are generally invoiced and collected bimonthly/monthly for retail
customers while for wholesale customers, they are invoiced on a monthly basis and due 40 or 60 days
after the date of issue, depending on whether they relate to the mobile component (40 days) or fixed
component (60 days).
•
Revenues from sales
Revenues from sales (telephone products and others) are recognized upon delivery when control of the
assets is transferred to the customers.
The devices sold separately from the services are invoiced at the time of delivery; collection takes place
on demand or based on installment plans (up to 48 monthly installments). The devices sold as part of
bundle offerings are invoiced at the time of delivery and usually collected in 24, 30 or 48 monthly
installments, depending on the type of offer and customer cluster. With specific reference to the
mobile products (smartphones and tables) and certain types of fixed-line products sold to consumer
customers, collection is made at the time of sale through the financial company TIMFin, which
disburses the loan to the customer.
The recognition of revenues can generate the recognition of an asset or liability deriving from contracts. In
particular:
■
Contract assets are the right to a consideration in exchange for goods or services that have been
transferred to the customer, when the right is conditioned on something other than the passage of time;
■
Liabilities deriving from a contract are the obligation to transfer goods or services to the customer for
which the Company has received (or for which it is due) a consideration from the customer.
Contract costs (incremental costs of obtaining a contract and costs to fulfill a contract; mainly technical
activation costs and costs for sales network commissions) are deferred and recognized through separate profit
or loss depending on the expected term of the contractual relationship with the customers. TIM avails itself of
the practical expedient, provided for by IFRS 15, to recognize the incremental costs for obtaining the contract
entirely in the income statement, provided the amortization period does not exceed 12 months.
The recoverability of contract assets and deferred costs is periodically assessed.
Research and advertising costs
Research costs and advertising expenses are charged directly to the separate income statements in the year in
which they are incurred.
Finance income and expenses
Finance income and expenses are recognized on an accrual basis and include: interest accrued on the related
financial assets and liabilities using the effective interest rate method; changes in the fair value of derivatives
and other financial instruments measured at fair value through the income statement; gains and losses on
foreign exchange and financial instruments (including derivatives).
Dividends
Dividends received are recognized in the separate income statements in the year in which they become
receivable following the resolution by the shareholders’ meeting for the distribution of dividends of the
investee companies.
Dividends payable are reported as a change in equity in the year in which they are approved by the
shareholders’ meeting.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
441
Income tax expense (current and deferred)
Income tax expense includes all taxes calculated on the basis of the taxable income of the Company.
Current and deferred income tax expense is calculated using all the elements and information available at the
reporting date, taking into account current laws and considering all the elements that could give rise to
uncertainties in the determination of the amounts due to the tax authorities, as provided for in IFRIC 23.
Income tax expense is recognized in the separate income statement, except to the extent that they relate to
items directly charged or credited to equity; in which case the related tax effect is recognized in the relevant
equity reserves. In the Statements of comprehensive income the amount of income tax expense relating to
each item included as "Other components of the Statements of comprehensive income" is indicated.
Deferred tax liabilities/assets are recognized using the "Balance sheet liability method". They are calculated on
all temporary differences that arise between the tax base of an asset or liability and the relevant carrying
amounts in the separate financial statements. Deferred tax assets relating to unused tax loss carryforwards
are recognized to the extent that it is probable that future taxable income will be available against which they
can be utilized. Tax assets and liabilities are offset when there is a legally enforceable right of offset. Prepaid
tax assets and deferred tax liabilities are determined by adopting the tax rates that are expected to apply to
taxable income in the years in which those temporary differences are expected to be recovered or settled.
The other taxes not related to income are included in "Other operating expenses".
Use of accounting estimates
The preparation of separate financial statements and related notes in conformity with IFRS requires
management to make estimates and assumptions based also on subjective judgments, past experience and
assumptions considered reasonable and realistic in relation to the information known at the time of the
estimate. Such estimates have an effect on the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, as well as on the amount of revenues
and costs during the year. Actual results could differ, even significantly, from those estimates owing to possible
changes in the factors considered in the determination of such estimates. Estimates are reviewed periodically.
The most significant accounting estimates that involve a high level of subjective assumptions and judgments
by directors are set out below.
Financial statements area
Accounting estimates
Goodwill impairment
The impairment test on goodwill is carried out by comparing the carrying amount of cash-generating units
and their recoverable amount. The recoverable amount of a cash-generating unit is the higher of fair value,
less costs to sell, and its value in use. This complex valuation process entails the use of methods such as the
discounted cash flow method, which uses assumptions to estimate cash flows. The fair value net of disposal
costs is based on the current value of forecast cash flow, calculated using a discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. The recoverable amount
depends significantly on the discount rate used in the discounted cash flow model, as well as the expected
future cash flows and the growth rate used for the extrapolation. The estimate of expected cash flows took
into account the risks arising from climate change (as explained in the section 'Main Risks and Uncertainties -
Risks Related to Key Sustainability Issues' in the Report on Operations), which at present do not have a
significant impact on the business model. The key assumptions used to determine the recoverable amount
for the different cash-generating units, including a sensitivity analysis, are detailed in the Note "Goodwill".
Impairment of tangible and
intangible assets with finite
useful lives and right of use
assets
At the end of each reporting period, the company assesses whether there is any indication that an asset –
whether tangible or intangible with finite useful lives or a right of use – may be impaired. Both internal and
external sources of information are used for this purpose.
Identifying the impairment indicators, estimating future cash flows and calculating the fair value of each
asset requires the Management to make significant estimates and assumptions in calculating the discount
rate to be used, and the useful life and residual value of the assets. The estimate of expected cash flows took
into account the risks arising from climate change (as explained in the section 'Main Risks and Uncertainties -
Risks Related to Key Sustainability Issues' in the Report on Operations), which at present do not have a
significant impact on the business model. These estimates can have a significant impact on the fair value of
the assets and on the amount of any impairment write-down.
Lease liabilities and rights of use
assets
The value of lease liabilities and corresponding rights of use is determined by calculating the present value of
the lease payments, also bearing in mind whether the renewal of the lease is reasonably certain.
Capitalization/deferment of costs The capitalization/deferment of internal and external costs is a process that entails elements of estimation
and valuation. Specifically, it involves the valuation of: i) the likelihood that capitalized costs will be recovered
through correlated future revenues; and ii) the effective increase in the future economic benefits embodied in
the related asset.
Provision for bad debts
Impairment on trade receivables and on contract assets is carried out using the simplified approach that
involves estimating the loss expected over the life of the receivable at the time of initial recognition and on
subsequent measurements. For each customer segment, the estimate is principally made by calculating the
average expected uncollectibility, based on historical and statistical indicators, possibly adjusted using
forward-looking elements. For some categories of receivables characterized by specific risk elements, specific
measurements are made on individual credit positions.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
442
Depreciation and amortization
Changes in the economic conditions of the markets, technology and competitive forces could significantly
affect the estimated useful lives of tangible and intangible non-current assets and may lead to a difference in
the timing, and thus on the amount of depreciation and amortization expense.
Provisions, contingent liabilities
and employee benefits
As regards the provisions for restoration costs, the estimate of future costs to dismantle tangible assets and
restore the site is a complex process that requires the valuation of the liabilities arising from such dismantling
and restoration obligations, which seldom are entirely defined by laws, administrative regulations or contract
clauses, and which normally are to be complied with after an interval of several years.
The provisions related to legal, arbitration and fiscal disputes, as well as regulatory proceedings, are the
result of a complex estimation process based upon the probability of an unfavorable outcome. Provisions for
employee benefits, especially the provision for employee severance indemnities, are calculated using
actuarial assumptions; changes in such assumptions could have a material impact on such liabilities.
Provisions made for contractual risks are also related to any contracts that may have become onerous and
are based on an articulated estimation process that envisages the valuation of the comprehensive negative
margins of the entire contract; they therefore include the non-discretionary costs necessary to fulfill the
commitments made that exceed the economic benefits expected from such contracts.
Revenues
The recognition of revenues is influenced by estimates of the amount of discounts, rebates and returns to be
reported as a direct adjustment to revenues, as well as the methods for defining individual product or service
stand-alone selling prices and for determining the duration of the contract when there are renewal options.
Contract costs (IFRS 15)
The recognition of the costs of obtaining and fulfilling contracts is influenced by the estimated expected
duration of the relationship with the customer, calculated on the basis of the historical turnover indexes and
future estimates. However, this estimate is subject to fluctuations and could only represent customers' future
behavior in a limited way, especially if there are new commercial offers or changes in the competitive
environment.
Income tax expense (current and
deferred)
Income tax expense (current and deferred) are calculated according to a prudent interpretation of the tax
laws in effect. This process sometimes involves complex estimates to determine taxable income and
deductible and taxable temporary differences between the carrying amounts and the taxable amounts. In
particular, deferred tax assets are recognized to the extent that future taxable income will be available
against which they can be recovered. The measurement of the recoverability of deferred tax assets,
recognized based on both unused tax loss carry-forwards to future years and deductible temporary
differences, takes into account the estimate of future taxable income and is based on conservative tax
planning.
Derivative instruments and
equity instruments
The fair value of derivative instruments and equity instruments is determined both using valuation models
which also take into account subjective measurements such as, for example, cash flow estimates, expected
volatility of prices, etc., and on the basis of prices existing in regulated markets or quotations provided by
financial counterparties. For further details refer to the Note “Supplementary disclosures on financial
instruments”.
As required by IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors), paragraph 10, in the
absence of a Standard or an Interpretation that specifically applies to a particular transaction, Management,
through careful subjective evaluation techniques, chooses the accounting methods to adopt with a view to
providing financial statements which faithfully represent the financial position, the results of operations and
the cash flows of the Company, which reflect the economic substance of the transactions, which are neutral,
prepared on a prudent basis and complete in all material respects.
New standards and interpretations endorsed by the EU and in
force from January 1, 2024
As required by IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors), the following is a brief
description of the IFRS in force commencing as of January 1, 2024.
Amendments to IFRS 16: Lease Liability in a Sale and Leaseback
On November 20, 2023, Regulation (EU) No. 2023/2579 was issued, implementing limited amendments to IFRS
16 to clarify that, in a sale and leaseback translation, the seller/lessee must measure only the amount in profit
or loss resulting from the rights transferred to the purchase/lessor. The initial measurement of the lease
liabilities arising from a sale and leaseback transaction depends on how the seller-lessee measures the right-
of-use asset and the gain or loss recognized at the transaction date.
Prior to these amendments, IFRS 16 did not contain specific measurements/requirements in relation to lease
liabilities that may contain variable payments arising from a sale and leaseback transaction. The amendments
require that, when subsequently measuring lease liabilities in a sale and leaseback transaction, the lessee-
seller should determine “lease payments” or “modified lease payments” so as not to recognize any gain or loss
that relates to the right-of-use retained by the seller-lessee.
The adoption of these amendments had no effect on the separate financial statements at December 31, 2024.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
443
Amendments to IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current
On December 19, 2023, Regulation (EU) No. 2023/2822 was issued, implementing certain limited amendments
to IAS 1 clarifying that liabilities are classified as current or non-current depending on the rights existing at the
end of the year. The amendment clarifies that:
a.
the classification of liabilities as current or non-current must be based on rights existing at the end of
the year. In all relevant paragraphs, the wording is aligned to refer to the "right" to defer payment for
at least 12 months, with it made explicit that only rights that are in existence "at the end of the
reporting period" should affect the classification of a liability. In other words, liabilities are classified
as non-current if the entity has a substantial right to defer payment for at least 12 months at the
end of the year;
b.
the classification is unaffected by expectations as to whether or not an entity will exercise its right to
defer payment of a liability; in other words, management's expectations do not affect the
classification; and
c.
settlement refers to the transfer of cash, equity instruments, other assets or services to the
counterparty.
The adoption of these amendments had no effect on the separate financial statements at December 31, 2024.
Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities
with Covenants
The same Regulation (EU) 2023/2822, issued on December 19, 2023, implemented other limited amendments
to IAS 1, clarifying that only covenants with which an entity must comply on or before the reporting date will
affect a liability’s classification as current or non-current.
In other words, these amendments provided that, at the reporting date, entities must not consider covenants
that are to be complied with in future for the purposes of classifying debt as current or non-current. Instead,
the entity must disclose these covenants in the notes to the financial statements.
With these changes, the IASB aims to help investors understand the risk of liabilities being repaid early. As
such, it has improved disclosures on long-term liabilities.
The adoption of these amendments had no effect on the separate financial statements at December 31, 2024.
Amendments to IAS 7 – Statement of Cash Flows and IFRS 7 – Financial Instruments:
Disclosures
On May 15, 2024, Regulation (EU) no. 2024/1317 was issued, incorporating certain amendments to IAS 7 –
Statement of Cash Flows and IFRS 7 – Financial Instruments: Disclosures. The amendments aim to help users
of financial statements determine the effects of supplier finance arrangements on an entity’s liabilities, cash
flows and liquidity risk exposure.
The amendments require entities to disclose information on the impact of supplier finance arrangements on
liabilities and cash flows, including:
■
the terms and conditions;
■
at the start and end of the reporting period:
■
the carrying amounts of the financial liabilities that are part of the supplier financing agreement and the
items in which these liabilities are presented;
■
the carrying amounts of the financial liabilities and the items for which payment has already been settled
by the finance provider;
■
the range of payment terms, expressed in time, of payables due to lenders and of trade payables that do
not form part of the arrangement;
■
the type and effect of non-monetary changes in the carrying amounts of the financial liabilities that are
part of the supplier finance arrangement, which prevent the carrying amounts of financial liabilities from
being comparable.
The amendments require entities to aggregate information related to supplier finance agreements. However,
entities must disaggregate information on any unusual or unique terms and conditions of individual
arrangements when these are dissimilar.
Explanatory information on payment due dates must also be disaggregated when there is a wide range of
payment due dates.
Supplier finance arrangements are included among the quantitative liquidity risk disclosures in IFRS 7 as an
example of other potentially material factors.
The amendments contain measures to facilitate the transition. For example, entities are not required to
disclose comparative information for preceding periods in the annual reporting period it first applies the
amendments.
The adoption of these amendments had no effect on the separate financial statements at December 31, 2024.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
444
New standards and interpretations issued by the IASB but not
yet applicable
At the date of preparation of these separate financial statements, the IASB had issued the following new
Standards and Interpretations which have not yet come into force:
Mandatory
application
starting from
New Standards and Interpretations not yet endorsed by the EU
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments
1/1/2026
Annual Amendments to IFRS - Volume 11
1/1/2026
Nature-dependent electricity contracts: Amendments to IFRS 9 and IFRS 7
1/1/2026
IFRS 18 – Presentation and Disclosure in Financial Statements
1/1/2027
IFRS 19 – Subsidiaries without Public Accountability: Disclosures
1/1/2027
New Standards and Interpretations endorsed by the EU
Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates
1/1/2025
Any impacts on the separate financial statements resulting from the application of these new Standards/
Interpretations are currently being assessed; However, it is considered that they are not significant with respect
to financial and economic results.
Separate financial statements of
TIM S.p.A.
Note 2
Accounting policies
445
NOTE 3
GOODWILL
Goodwill as of December 31, 2024 amounted to 8,814 million euros and refers to the goodwill included in TIM
S.p.A.'s domestic business segment. This item decreased by 3,250 million euros compared to December 31,
2023 as a result of the allocation of the relevant portion of goodwill to the NetCo business unit, contributed to
FiberCop S.p.A. and subject to sale on July 1, 2024.
In accordance with IAS 36, goodwill is not subject to amortization, but is tested for impairment on at least an
annual basis, when preparing the company’s separate financial statements.
If, at consolidated financial statements level, the need should arise to write-down the goodwill in reference to
a specific CGU, this write-down must be attributed, in the separate financial statements of TIM S.p.A., to the
business referring to the same CGU, which has not already been tested individually, namely goodwill and
controlling investments that are part of the same CGU.
Impairment tests carried out with reference to the CGU in the consolidated financial statements have
determined the need to write down the goodwill allocated to the Domestic CGU, of which the controlling
investments held by TIM S.p.A. in Noovle S.p.A. and Telecom Italia Sparkle S.p.A. are a part.
Therefore, on the separate financial statements of TIM S.p.A., goodwill does not need to be impaired.
With reference to the investment held in Telecom Italia Sparkle S.p.A., please refer to what is explained in the
Note "Investments."
Below, therefore, is an explanation of how impairment testing of the Domestic CGU is carried out for the
consolidated financial statements.
Following the sale of NetCo, the Domestic CGU includes the Enterprise, Consumer and Sparkle perimeter. On
February 12, 2025, TIM's Board of Directors accepted a binding price proposal (representing the fair value of the
perimeter being sold) for the sale of the entire stake (100%) held in Telecom Italia Sparkle, the completion is
expected to be concluded in the first part of 2026.
Therefore, the value configuration used to determine the recoverable amount as of December 31, 2024 of the
Domestic CGU is the Fair Value estimated based on a valuation obtained by sum of parts between the
Enterprise and Consumer (Domestic formerly Sparkle) subCGUs and the Sparkle subCGU.
The present value (as of December 31, 2024) of the price implied in the binding offer (price proposal referring to
the first quarter of 2026) by an independent party (MEF / Retelit) was assumed as the recoverable value
estimate of Sparkle.
Instead, the fair value based on the income approach was taken as the estimate of Domestic formerly
Sparkle's recoverable value, as it was deemed to better express the value of the Group's assets (so-called
market participant perspective), also reflecting the cost interventions in view of a possible future new and
different business structure.
For the Domestic subCGU formerly Sparkle, the estimate of fair value on the basis of the income approach was
made in compliance with IAS 36, with valuation principles and best practices, with reference to the flows of the
2025-2027 Industrial Plan, which is based on the final results of 2024: (i) it reflects realistic expectations
regarding future evolutions; (ii) it brings into play careful cost cutting actions as preparation for the future
business structure; (iii) it maintains the perspective of use of assets of the domestic market continuing on with
the same conditions as at December 31, 2024. The expected cash flows reported in the 2025-2027 Industrial
Plan approved by the Board of Directors have been critically analyzed and, with the support of expert
appraisers, the average representativeness has been assessed. Expected average cash flows for the 2025-2027
Industrial Plan were extrapolated for an additional two years (2028-2029), thus bringing the explicit forecast
period for future cash flows to a total of five years (2025-2029). The extrapolation of data for 2028-2029 was
necessary, in line with that carried out by the main European incumbents, in order to intercept market,
competition and industrial trends that will become manifest beyond the forecast horizon of the Industrial Plan.
It is specified that where inputs are present that cannot be observed, the fair value thus determined is assigned
as level 3 of the fair value hierarchy, as envisaged by IFRS 13 - Fair value measurement.
The estimation of the fair value according to the income approach requires the determination of the current
value of income beyond the explicit forecast period (“terminal value”). For this purpose, the 2029 flow has been
appropriately adjusted to take into account a level of long-term investment normalized by the effects related
to the development of projects in innovative technologies existing in the plan years. In addition, specifically in
reference to the use of the 5G license, account was taken of the expected incremental net flows over the
license term beyond the plan’s five-year term. This approach is consistent with the need to consider, on the
one hand, the negative cash flows arising from the investments made supporting the exploitation of the 5G
license, and on the other hand, the positive cash flows arising from the incremental business component that
the license allows to be developed over a longer time frame than the five years of explicit forecast.
The cost of capital used to discount the future cash flows in the estimates of fair value for the Domestic
subCGU formerly Sparkle:
■
was estimated using the Capital Asset Pricing Model (CAPM), which is one of the generally accepted
application criteria referred to in IAS 36;
■
reflects current market estimates of the time value of money and the specific risks associated with the
asset groups; includes appropriate yield premiums for country risk;
■
was calculated using comparative market parameters to estimate the “Beta coefficient” and the weighting
coefficient of the equity and debt capital components.
These are reported below for the Domestic subCGU formerly Sparkle:
Separate financial statements of
TIM S.p.A.
Note 3
Goodwill
446
■
the weighted average cost of capital (WACC rate) used to discount the future cash flows and the
equivalent rate before tax;
■
details are also provided of the growth rate used to estimate the residual value after the explicit forecast
period (the G-Rate), expressed in nominal terms and related to the cash flows in their functional currency;
■
details are provided of the implicit capitalization rates resulting from the difference between the cost of
capital, after tax, and the G-Rate.
Parameters relevant to the Fair Value estimates of the Domestic sub-CGU formerly Sparkle
WACC
7.00 %
WACC before tax
9.08 %
Growth rate beyond the explicit period (g)
1.00 %
Capitalization rate after tax (WACC-g)
6.00 %
Capitalization rate before tax (WACC-g)
8.08 %
CapEx/Revenues, perpetual
10.65 %
The 7% aligned weighted average cost of capital estimate is within the range of weighted average cost of
capital estimates by equity analysts.
The growth rate in the terminal value “g” of the Domestic subCGU formerly Sparkle was estimated taking into
account the expected evolution of demand for the various business areas (Enterprise and Consumer), overseen
in terms of investments and competences also by the subsidiary Noovle. The growth rate thus estimated falls
within the range of growth rates applied by analysts who monitor TIM shares.
The phase of capital expenditure, competitive positioning and the technological infrastructure operated was
taken into account in estimating the level of investment needed to sustain the perpetual development of cash
flows after the explicit forecast period.
The recoverable amount of the Domestic cash generating unit, determined on the basis of the Fair Value
estimated on the basis of the sum of the parts, showed headroom of 1,277 million euros.
Therefore, in light of all the above elements, the Goodwill values recognized in the financial statements of TIM
S.p.A. are confirmed in the year 2024.
Separate financial statements of
TIM S.p.A.
Note 3
Goodwill
447
NOTE 4
INTANGIBLE ASSETS WITH A FINITE USEFUL LIFE
The item decreased by 621 million euros compared to December 31, 2023. The breakdown and movements are
as follows:
(million euros)
12/31/2022
Investments
Depreciation
and
amortization
Impairment
(losses)
/reversals
Disposals
Other
changes
12/31/2023
Industrial patents and
intellectual property rights
1,302
427
(723)
0
(1)
249
1,254
Concessions, licenses,
trademarks and similar rights
3,316
—
(322)
0
—
10
3,004
Other intangible assets
2
2
(1)
0
—
(1)
2
Work in progress and advance
payments
403
188
—
0
(1)
(272)
318
Total
5,023
617
(1,046)
—
(2)
(14)
4,578
(million euros)
12/31/2023
Discontinued
operations
Investments
Depreciation
and
amortization
Impairment
(losses)
/reversals
Disposals
Other
changes
12/31/2024
Industrial patents and
intellectual property rights
1,254
(152)
305
(640)
—
—
239
1,006
Concessions, licenses,
trademarks and similar
rights
3,004
(8)
—
(320)
—
—
(1)
2,675
Other intangible assets
2
—
—
(1)
—
—
1
2
Work in progress and
advance payments
318
(69)
206
—
—
(1)
(180)
274
Total
4,578
(229)
511
(961)
—
(1)
59
3,957
Industrial patents and intellectual property rights consisted of software, patents and television rights.
Specifically:
■
television rights for TIM multimedia platforms are amortized over the duration of the contracts;
■
application and plant operation software, purchased outright and with user licenses, is amortized over an
expected useful life of two, three or six years;
■
patents are amortized over five years.
Decrease by 248 million from December 31, 2023, due to depreciation and amortization for the year and the
NetCo transaction, partially offset by the dynamics of investments and potential exercise in the year.
Concessions, licenses, trademarks and similar rights mainly related to the residual cost of licenses for mobile
and fixed telecommunications services; compared to December 31, 2023, decreased by 329 million euros
mainly due to the dynamics of amortization.
Separate financial statements of
TIM S.p.A.
Note 4
Intangible assets with a finite useful life
448
The amount of telephone licenses and similar rights in operation at December 31, 2024 and their useful lives
are detailed below:
Type
Residual value as
of 12/31/2024
(thousands of
euros)
Useful life
(Years)
Maturity
Amortization expense
for 2024
(thousands of euros)
UMTS 2100 MHz (extension)
149,804
8
12/31/2029
29,961
WiMax (extension)
3,277
7
12/31/2029
668
34-36-MHz OpNet (former Linkem) band
43,722
7
12/31/2029
8,744
LTE 1800 MHz
42,855
18
12/31/2029
8,571
LTE 800 MHz
300,158
17
12/31/2029
60,032
LTE 2600 MHz
33,011
17
12/31/2029
6,602
L Band (1452-1492 MHz)
82,353
14
12/31/2029
16,471
900 and 1800 MHz band
273,742
11
12/31/2029
54,748
3600-3800 MHz band (5G)
1,153,689
19
12/31/2037
88,745
26.5-27.5 GHz band (5G)
22,593
19
12/31/2037
1,738
694-790 MHz band (5G)
570,490
15 years and 6
months
12/31/2037
43,884
Work in progress and advance payments amounted to 274 million euros (318 million euros as of December 31,
2023) and decreased by 44 million euros, due to the commissioning of assets and the NetCo transaction,
partially offset by investments for the year. Work in progress mainly referred to IT investments in BSS-OSS and
Service Creation and the development of access platforms.
Capital expenditures in 2024 amounted to 511 million euros and decreased by 35 million euros compared to
2023 (546 million euros, excluding the share pertaining to the NetCo business), mainly as a result of fewer
acquisitions of software licenses and lower software platform development activities.
Amortization related to intangible assets amounted to 961 million euros and decreased by 11 million euros
compared to those recognized in 2023 (972 million, excluding the portion related to the NetCo business),
mainly as a result of lower amortization on software application developments and television broadcasting
rights.
Amortization is recorded in the income statement under the components of EBIT.
The gross carrying amount, accumulated impairment losses and accumulated amortization at December 31,
2023 and December 31, 2024 can be summarized as follows:
12/31/2023
(million euros)
Gross carrying
amount
Accumulate
d
impairment
losses
Accumulated
amortization
Net carrying
amount
Industrial patents and intellectual property rights
8,381
(1)
(7,126)
1,254
Concessions, licenses, trademarks and similar rights
4,894
—
(1,890)
3,004
Other intangible assets
59
—
(57)
2
Work in progress and advance payments
318
—
—
318
Total
13,652
(1)
(9,073)
4,578
Separate financial statements of
TIM S.p.A.
Note 4
Intangible assets with a finite useful life
449
12/31/2024
(million euros)
Gross carrying
amount
Accumulate
d
impairment
losses
Accumulated
amortization
Net carrying
amount
Industrial patents and intellectual property rights
7,929
(1)
(6,922)
1,006
Concessions, licenses, trademarks and similar rights
4,868
—
(2,193)
2,675
Other intangible assets
61
—
(59)
2
Work in progress and advance payments
274
—
—
274
Total
13,132
(1)
(9,174)
3,957
With regard to the gross values of intangible assets with a finite useful life, in 2024 there were disposals of 482
million euros related to almost fully amortized intellectual property rights, including obsolete IT and network
systems and software developments of 481 million euros and abandoned or expired patents of 1 million euros.
Separate financial statements of
TIM S.p.A.
Note 4
Intangible assets with a finite useful life
450
NOTE 5
TANGIBLE ASSETS
The item decreased by 4,840 million euros compared to December 31, 2023. The breakdown and movements
are as follows:
(million euros)
12/31/2022
Investments
Depreciation
and
amortization
Impairment
(losses)/
reversals
Disposals
Other
changes
12/31/2023
Land
202
—
—
—
(4)
1
199
Buildings (civil and
industrial)
441
3
(27)
—
(4)
8
421
Plant and equipment
5,471
590
(1,139)
—
(24)
297
5,195
Manufacturing and
distribution equipment
17
5
(7)
—
—
1
16
Other
130
27
(56)
—
—
9
110
Construction in progress
and advance payments
576
364
—
—
(1)
(319)
620
Total
6,837
989
(1,229)
—
(33)
(3)
6,561
(million euros)
12/31/2023
Discontinued
operations
Investments
Depreciation
and
amortization
Impairment
(losses) /
Reversals
Disposals
Other
changes
12/31/2024
Land
199
(196)
—
—
—
—
(1)
2
Buildings (civil and
industrial)
421
(415)
—
(1)
—
(1)
1
5
Plant and equipment
5,195
(3,782)
231
(451)
—
(7)
132
1,318
Manufacturing and
distribution equipment
16
(16)
—
—
—
—
—
—
Other
110
(21)
39
(42)
—
—
(6)
80
Construction in progress
and advance payments
620
(361)
206
—
(14)
—
(135)
316
Total
6,561
(4,791)
476
(494)
(14)
(8)
(9)
1,721
Land includes both built-up land (with the presence of buildings or light construction) and available land; It
should be noted that land, including land pertaining to buildings, is not depreciated. This item decreased by 197
compared with December 31, 2023 mainly as a result of the NetCo transaction.
Buildings (civil and industrial) includes buildings for industrial use or offices and light construction (small
prefabricated buildings and stacked containers). This item decreased by 416 million euros compared to
December 31, 2023 mainly due to the NetCo transaction.
Plant and equipment consists mainly of transmission and power systems and equipment, data network and
switching, SRB infrastructure, and commercial products. This item decreased by 3,877 million euros compared
to December 31, 2023, mainly as a result of the NetCo transaction. Investments in 2024 (231 million euros) are
down from the previous year (333 million euros, excluding the share pertaining to the NetCo business) mainly
due to a decrease in investments on customer network and rented mobile terminals (-38 million euros), mobile
access equipment and antennas (-20 million euros) and SRB infrastructure (-20 million euros).
Manufacturing and distribution equipment consisted of instruments and equipment used for the operation
and maintenance of plant and equipment. This item was zero as of December 31, 2024 as a result of the NetCo
transaction.
Other mainly consists of hardware for the functioning of the network and for work stations, furniture and
fixtures and, to a minimal extent, transport vehicles and office machines; it dropped by 30 million euros on
December 31, 2023.
Construction in progress and advance payments decreased by 304 million euros compared to December 31,
2023, mainly as a result of the NetCo transaction; These include the internal and external costs incurred for the
acquisition and internal production of tangible assets, which are not yet in use. Other changes included the
entry intro operation of capitalizations from previous years.
Disposals totaled 8 million euros and mainly related to the sale of Dark Fiber for network infrastructure
(installation, transport, access), the abandonment of sites for Radio Base Stations and the sale of equipment
as part of the process aimed at decommissioning and asset enhancement.
Capital expenditures in 2024 amounted to 476 million euros and decreased by 51 million euros compared to
2023 (527 million euros, excluding the share pertaining to the NetCo business); they are mainly related to
commercial products for customer rental contracts (106 million euros), transmission equipment including SDH-
Wdm (69 million euros), LTE/UMTS core and access (29 million euros), data network and switching (21 million
Separate financial statements of
TIM S.p.A.
Note 5
Tangible assets
451
euros), management hardware systems (39 million euros) and plant inventory materials (3 million euros), as
well as tangible assets in progress (206 million euros) mainly related to mobile access platform development
and mobile engineering activities.
Depreciation of tangible assets amounted to 494 million euros, a decrease of 27 million euros from 2023.
Depreciation is calculated using the straight-line method over the remaining useful lives of the assets in
accordance with the depreciation plan reviewed annually to take account of useful lives by single class of fixed
asset. The effects of any changes in the useful life are recognized in the income statement prospectively.
Depreciation for the year 2024 is calculated on a straight-line basis over the estimated useful lives of the assets
according to the following minimum and maximum rates:
Buildings (civil and industrial)
3% – 6.67%
Plant and equipment
2.86% - 50%
Manufacturing and distribution equipment
20%
Other
11% - 33.33%
The gross carrying amount, accumulated impairment losses and accumulated amortization at December 31,
2023 and December 31, 2024 can be summarized as follows:
12/31/2023
(million euros)
Gross carrying
amount
Accumulated
impairment losses
Accumulated
amortization
Net carrying amount
Land
199
—
—
199
Buildings (civil and industrial)
1,649
—
(1,228)
421
Plant and equipment
49,469
(9)
(44,265)
5,195
Manufacturing and distribution
equipment
307
—
(291)
16
Other
1,381
(2)
(1,269)
110
Construction in progress and
advance payments
621
(1)
—
620
Total
53,626
(12)
(47,053)
6,561
12/31/2024
(million euros)
Gross carrying
amount
Accumulated
impairment losses
Accumulated
amortization
Net carrying amount
Land
2
—
—
2
Buildings (civil and industrial)
14
—
(9)
5
Plant and equipment
12,531
(4)
(11,209)
1,318
Manufacturing and distribution
equipment
2
—
(2)
—
Other
1,027
(2)
(945)
80
Construction in progress and
advance payments
316
—
—
316
Total
13,892
(6)
(12,165)
1,721
With regard to the gross carrying amounts of tangible assets, in 2024 disposals were made for a total value of
226 million euros, mainly in relation to fully depreciated assets, including: public telephone equipment and
booths (142 million euros), consumer and business network equipment (30 million euros), network
infrastructure (20 million euros), routers, decoders and other equipment (22 million euros), and cell phones (3
million euros).
Separate financial statements of
TIM S.p.A.
Note 5
Tangible assets
452
NOTE 6
RIGHTS OF USE ASSETS
The item decreased by 1,758 million euros compared to December 31, 2023. The breakdown and movements
are as follows:
(million euros)
12/31/202
2
Investments
Increases
in lease
contracts
Depreciation
and
amortization
Impairment
(losses)
/ reversals
Disposals
Other
changes
12/31/2023
Rights of use on
intangible assets
Rights of use
Concessions, Licenses,
Trademarks and Similar
Rights
1
—
—
(1)
—
—
—
—
1
—
—
(1)
—
—
—
—
Rights of use on tangible
assets
Property
2,318
24
450
(310)
—
(35)
19
2,466
Plant and equipment
776
15
71
(132)
—
(14)
12
728
Other
63
—
12
(25)
—
(2)
—
48
Construction in progress
and advance payments
30
18
—
—
—
—
(19)
29
3,187
57
533
(467)
—
(51)
12
3,271
Total
3,188
57
533
(468)
—
(51)
12
3,271
(million euros)
12/31/202
3
Discontinued
operations
Investments
Increases
in lease
contracts
Depreciation and
amortization
Impairment
(losses)
/ reversals
Disposals
Other
changes
12/31/2024
Rights of use on
intangible assets
Rights of use
Concessions, Licenses,
Trademarks and Similar
Rights
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Rights of use on
tangible assets
Property
2,466
(2,243)
1
100
(40)
—
(26)
6
264
Plant and equipment
728
(208)
—
86
(146)
—
(2)
720
1,178
Other
48
(34)
13
(6)
—
(2)
1
20
Construction in progress
and advance payments
29
(21)
49
—
—
—
—
(6)
51
3,271
(2,506)
50
199
(192)
—
(30)
721
1,513
Total
3,271
(2,506)
50
199
(192)
—
(30)
721
1,513
Rights of use on intangible assets were zero as of December 31, 2024 (zero as of December 31, 2023); these
include the recording as an IFRS 16 lease, starting 2021, of an agreement that can be qualified as “Software as
a Service - SaaS”, in exchange for which TIM acquired the right to make exclusive use of software licenses
residing on partitions of third party hardware platforms dedicated exclusively to the Company.
Rights of use on tangible assets amounted to 1,513 million euros and decreased compared to December 31,
2023 by 1,758 million euros. In particular:
■
the item Property includes buildings and land under lease contracts and the related building adaptations.
Decreased by 2,202 million euros mainly as a result of the NetCo transaction;
■
the itemPlant and equipment mainly includes rights of use on infrastructure for telecommunication
services and increases by 450 million euros compared to December 31, 2023 mainly as a result of the
recognition, as part of the NetCo transaction as part of consideration, of usage rights (fair value) on B2B
connections (755 million euros) with varying durations between 7 and 20 years;
■
the itemOther includes mainly finance leases on motor vehicles and decreased by 28 million euros
compared to December 31, 2023 mainly due to the NetCo transaction.
Capital expenditures consist of the acquisition of transmission capacity in IRUs (45 million euros, related to
backhauling and other rights of use under the MSA with Fibercop S.p.A.) and incremental expenses and
improvements incurred on leased property and non-property assets (5 million euros).
Separate financial statements of
TIM S.p.A.
Note 6
Rights of use assets
453
Increases in lease contracts include the higher value of user rights entered following new lease contracts
payables, increase of lease payments and renegotiations of existing contracts. In accordance with IFRS 16
(Leases), lease liabilities are presented through the recognition of a financial liability in the statement of
financial position at the present value of future lease payments, against the recognition of a rights-of-use
asset of the leased asset.
Disposals represents the book value of the assets from property lease contracts (and related improvements)
issued in advance, net of the value of the residual financial debt.
In addition to the effects related to the NetCo transaction, Other changes mainly includes the transfers during
the year and the changes related to the lower value of rights of use recorded as a result of contractual
changes during the year, mainly for lease liabilities under IFRS 16.
Amortization and impairment losses have been recorded in the income statement as components of EBIT.
The gross carrying amount, accumulated impairment losses and accumulated amortization at December 31,
2023 and December 31, 2024 can be summarized as follows:
12/31/2023
(million euros)
Gross carrying
amount
Accumulated
impairment losses
Accumulated
amortization
Net carrying
amount
Rights of use on intangible assets
Rights of use Concessions, Licenses,
Trademarks and Similar Rights
4
—
(4)
—
Work in progress and advance payments
—
—
—
—
4
—
(4)
—
Rights of use on tangible assets
Property
5,252
(13)
(2,773)
2,466
Plant and equipment
1,315
—
(587)
728
Equipment
—
—
—
—
Other
192
—
(144)
48
Construction in progress and advance
29
—
—
29
6,788
(13)
(3,504)
3,271
Total
6,792
(13)
(3,508)
3,271
12/31/2024
(million euros)
Gross carrying
amount
Accumulated
impairment losses
Accumulated
amortization
Net carrying
amount
Rights of use on intangible assets
Rights of use Concessions, Licenses,
Trademarks and Similar Rights
—
—
—
—
Work in progress and advance payments
—
—
—
—
—
—
—
—
Rights of use on tangible assets
Property
488
—
(224)
264
Plant and equipment
1,740
—
(562)
1,178
Equipment
—
—
—
—
Other
57
—
(37)
20
Construction in progress and advance
51
—
—
51
2,336
—
(823)
1,513
Total
2,336
—
(823)
1,513
With regard to the gross carrying amounts of rights of use of third party assets, in 2024 disposals were made
for a total value of 135 million euros.The categories of assets most affected were: rented properties and related
improvements and adaptations (112 million euros), base transceiver stations (7 million euros) and leased cars
(15 million euros).
Separate financial statements of
TIM S.p.A.
Note 6
Rights of use assets
454
NOTE 7
INVESTMENTS
These decreased, compared to December 31, 2023, by 3,470 million euros and refer to:
(million euros)
12/31/2024
of which Financial
Instruments
12/31/2023
of which Financial
Instruments
Subsidiaries
7,321
10,563
Associates and joint ventures
68
304
Other investments
44
44
36
36
Total
7,434
44
10,903
36
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
As permitted by IFRS 9, TIM S.p.A. now measures all Other Investments at fair value through other
comprehensive income (FVTOCI).
In 2024 the main transactions with subsidiaries, associates, joint ventures and other equity investments of TIM
S.p.A. were the following:
■
FiberCop S.p.A. and Telenergia S.r.l.: on July 1, 2024, TIM S.p.A. transferred the Business Unit – consisting of
the activities relating to the primary network, the wholesale business and the entire shareholding in the
subsidiary Telenergia S.r.l. – to FiberCop S.p.A., a company that already managed the activities relating to
the secondary fiber and copper network; concurrent with the transfer, TIM S.p.A. sold its entire stake in the
share capital of FiberCop S.p.A. to Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis Roberts & Co. L.P.
(“KKR”)) and, together with FiberCop S.p.A., entered into a master services agreement regulating the terms
and conditions of the services provided between FiberCop S.p.A. and TIM S.p.A.. On that date, therefore,
the economic and equity effects of the Transaction were recognized;
■
Italtel S.p.A.: On July 4, 2024, TIM S.p.A. sold its 17.72% stake in Italtel S.p.A. to Nextalia SGR S.p.A;
■
Nordcom S.p.A.: On July 15, 2024, TIM S.p.A. sold its 42% stake in Nordcom S.p.A. to FNM S.p.A;
■
Daphne 3 S.p.A.: on November 29, 2024 TIM S.p.A. sold its entire 10% stake in Daphne 3 S.p.A. to Impulse I
(consortium led by Ardian) and Daphne 3 S.p.A. itself.
Movements during 2024 for each investment and the corresponding amounts at the beginning and end of the
year are shown in the tables below. In particular, the main movements for the year were as follows:
■
Telecom Italia Sparkle S.p.A.: following the acceptance of the binding offer for the sale of the entire stake
(100%) held in Telecom Italia Sparkle, in the 2024 Financial Statements, the Telecom Italia Sparkle Group's
actual loss for the year 2024 (70 million euros) was fully recognized and, following the verification of the
recoverability of the value of the stake based on the offer, an impairment loss of 230 million euros was
recognized;
■
Telecom Italia Latam Participações e Gestão Administrativa Ltda: TIM carried out a capital increase in the
amount of 16 million euros;
■
Olivetti S.p.A. Società Benefit: TIM made a capital increase of 30 million euros and the value of the
investment was written down by 22 million euros (including 10 million euros through reclassification of the
provision for risks and charges on investments);
■
Polo Strategico Nazionale S.p.A.: TIM made a capital investment of 7 million euros;
■
FIN PRIV S.r.l.: the fair value of the investment was adjusted upwards by 9 million euros.
Separate financial statements of
TIM S.p.A.
Note 7
Investments
455
Investments
(thousands of
euros)
Carrying
amount at
12/31/2023
Mergers/
demerger
s
spin-offs
of
business
units
Acquisitions/
Subscriptions/
Payments to
cover Losses
Disposals/
Reimburse
ments
Impairment
losses /
Reversals
Value/ Adj.
Fair value
Other
changes and
reclassifica-
tions
Total
changes
Carrying
amount at
12/31/2024
Investments in subsidiaries
CD FIBER S.r.l.
43
(6)
(6)
37
FIBERCOP S.p.A.
2,965,894 4,002,938
(6,968,850)
18 (2,965,894)
—
OLIVETTI S.p.A.
SOCIETA’ BENEFIT
—
(21,768)
30,000
8,232
8,232
NOOVLE S.p.A.
SOCIETA' BENEFIT
1,079,907
(3)
(3)
1,079,904
TELECOM ITALIA
CAPITAL S.A.
2,388
—
2,388
TELECOM ITALIA
FINANCE S.A.
5,914,971
—
5,914,971
TELECOM ITALIA
LATAM PARTICIPAÇÕES
E GESTÃO
ADMINISTRATIVA
—
15,995
15,995
15,995
TELECOM ITALIA SAN
MARINO S.p.A.
7,565
—
7,565
TELECOM ITALIA
SPARKLE S.p.A.
481,109
(300,000)
21
(299,979)
181,130
TELECOM ITALIA
VENTURES S.r.l.
63,635
—
63,635
TELECONTACT CENTER
S.p.A.
12,654
—
12,654
TELENERGIA S.r.l.
100
(100)
(100)
—
TELSY S.p.A.
19,522
—
19,522
TI AUDIT COMPLIANCE
LATAM (in liquidation)
S.A.
—
—
—
TIM BRASIL SERVIÇOS E
PARTICIPAÇÕES S.A.
—
—
—
TIM RETAIL S.r.l.
15,143
—
15,143
TIM MY BROKER S.r.l.
10
—
10
TIM SERVIZI DIGITALI
S.p.A.
—
—
—
10,562,941 4,002,838
15,995
(6,968,850)
(321,774)
30,036 (3,241,755)
7,321,186
(thousands of
euros)
Carrying
amount at
12/31/2023
Mergers/
demerger
s
spin-offs
of
business
units
Acquisitions/
Subscriptions/
Payments to
cover Losses
Disposals/
Reimburse
ments
Impairment
losses /
Reversals
Value/ Adj.
Fair value
Other
changes
and
reclassifica-
tions
Total
changes
Carrying
amount at
12/31/2024
Investments in associates and joint ventures
AREE URBANE (in
liquidation)
—
—
—
DAPHNE 3 S.p.A.
234,247
(234,247)
(234,247)
—
ITALTEL S.p.A.
6,557
(6,557)
(6,557)
—
NORDCOM S.p.A.
2,143
(2,143)
(2,143)
—
POLO STRATEGICO
NAZIONALE S.P.A.
24,300
7,200
7,200
31,500
TIGLIO I
—
—
—
TIMFin S.p.A.
36,750
—
36,750
303,997
—
7,200
(242,947)
—
—
(235,747)
68,250
Separate financial statements of
TIM S.p.A.
Note 7
Investments
456
(thousands of
euros)
Carrying
amount at
12/31/2023
Mergers/
demerger
s
spin-offs
of
business
units
Acquisitions/
Subscriptions/
Payments to
cover Losses
Disposals/
Reimburse
ments
Impairment
losses /
Reversals
Value/ Adj.
Fair value
Other
changes
and
reclassifica-
tions
Total
changes
Carrying
amount at
12/31/2024
Investments in other companies
BANCA UBAE
2,187
260
260
2,447
FIN. PRIV.(*)
23,413
8,948
8,948
32,361
IST. ENCICLOPEDIA
ITALIANA G. TRECCANI
3,394
(611)
(611)
2,783
ISTITUTO EUROPEO DI
ONCOLOGIA
2,864
77
77
2,941
Other minor
investments
3,599
—
14
—
245
—
259
3,858
35,457
—
14
—
8,919
—
8,933
44,390
Total Investments
10,902,395
4,002,838
23,209
(7,211,797)
(312,855)
30,036 (3,468,569)
7,433,826
(*) Recognized investment measured at fair value through other comprehensive income (FVTOCI).
The list of investments in subsidiaries, associates and joint ventures at December 31, 2024 is presented in
compliance with Article 2427 of the Italian Civil Code and reported in the Note 43 "List of investments in
subsidiaries, associates and joint ventures".
Separate financial statements of
TIM S.p.A.
Note 7
Investments
457
NOTE 8
NON-CURRENT AND CURRENT FINANCIAL
ASSETS
Non-current and current financial assets were broken down as follows:
(million euros)
12/31/2024
12/31/2023
Non-current financial assets
Financial receivables and other non-current financial assets
Financial receivables from subsidiaries
1,034
3,049
Receivables from employees
9
29
Hedging derivatives relating to hedged items classified as non-current
assets/liabilities of a financial nature
72
73
Non-hedging derivatives
464
726
Other financial receivables
—
9
1,579
3,886
Financial receivables for lease contracts
14
6
Total non-current financial assets
(a)
1,593
3,892
Securities other than investments, other financial receivables and
other current financial assets
Securities other than investments
Measured at amortized cost (AC)
—
—
Measured at Fair Value Through Comprehensive Income (FVTOCI)
—
—
Measured at Fair Value Through Profit or Loss (FVTPL)
—
—
—
—
Financial receivables and other current financial assets
Receivables from employees
3
22
Hedging derivatives relating to hedged items classified as current
assets/liabilities of a financial nature
4
66
Non-hedging derivatives
43
73
Financial receivables from subsidiaries
395
380
Other short-term financial receivables
1
491
(b)
446
1,032
Financial receivables for lease contracts
(c)
26
68
Cash and cash equivalents
(d)
820
598
Total current financial assets
e=(b+c+d)
1,292
1,698
Total non-current and current financial assets
(f)=(a+e)
2,885
5,590
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
Financial receivables from subsidiaries amounted to 1,034 million euros (3,049 million euros at December 31,
2023) and consisted of loans granted to Noovle S.p.A. (884 million euros), Telecom Italia Sparkle S.p.A. (110
million euros), Telsy S.p.A. (39 million euros). Current financial receivables from subsidiaries amounted to 395
million euros (380 million euros as of December 31, 2022) and included 5 million euros of current portion of
medium- to long-term loans and 390 million euros of draws on short-term credit lines (including 386 million
euros with counterparty Telecom Italia Sparkle S.p.A.).
Financial receivables for lease contracts (current and non-current) amounted to 40 million euros (74 million
euros at December 31, 2023) and included:
■
agreements for the sale of network infrastructure in IRU with deferred collection over time of 20 million
euros (64 million euros at December 31, 2023) recognized using the financial method envisaged by IFRS 16
given the contractual term substantially close to the economic life of the asset;
■
13 million euros in sub-lease agreements (including 11 million to subsidiaries);
■
contracts for the lease of commercial products to customers, for an amount of 7 million euros (10 million
euros at December 31, 2023).
Receivables from employees (current and non-current) amounted to 12 million euros (51 million euros at
December 31, 2023) and included the remaining amount due on loans granted.
Separate financial statements of
TIM S.p.A.
Note 8
Non-current and current financial assets
458
Hedging derivatives, amounting to 76 million euros (139 million euros as of December 31, 2023), include the
spot mark-to-market valuation components of cash flow hedge derivatives and the accrued income on these
contracts, in particular 73 million euros have Telecom Italia Finance S.A. as counterparty.
Non-hedging derivatives amounted to 507 million euros (799 million euros at December 31, 2023) and
included the asset value of transactions that TIM S.p.A. carries out on behalf of Group companies under
centralized treasury arrangements. This item is offset by the corresponding item classified in financial liabilities.
The non-hedging derivatives consisted of:
■
items classified under non-current financial assets (464 million euros), which refer to the mark-to-market
spot valuation component of the non-hedging derivatives;
■
items classified as current financial assets (43 million euros), relating to the accrued income component on
non-hedging derivative contracts.
Further details are provided in Note 18 "Derivatives".
Cash and cash equivalents amounted to 820 million euros, up by 222 million euros compared to December 31,
2023 and were broken down as follows:
(million euros)
12/31/2024
12/31/2023
Liquid assets with banks, financial institutions and post offices
732
560
Checks, cash and other receivables and deposits for cash flexibility
—
—
Receivables from subsidiaries
88
38
Total
820
598
The different technical forms of investing available cash can be analyzed as follows:
■
maturities: investments have a maximum maturity of three months;
■
counterparty risk: investments are made with leading banking and financial institutions with high credit
quality and with a rating of at least BBB- according to Standard & Poor’s or similar rating agencies;
■
Country risk: deposits have been made mainly in major European financial markets.
Separate financial statements of
TIM S.p.A.
Note 8
Non-current and current financial assets
459
NOTE 9
MISCELLANEOUS RECEIVABLES AND OTHER
NON-CURRENT ASSETS
Miscellaneous receivables and other non-current assets breaks down as follows:
(million euros)
12/31/2024
of which
Financial
Instruments
12/31/2023
of which Financial
Instruments
Miscellaneous receivables (non-
current)
Miscellaneous receivables from
subsidiaries
3
—
140
—
Miscellaneous receivables from
associates
—
—
—
—
Other receivables
247
6
43
12
(a)
250
6
183
12
Other non-current assets
Deferred contract costs
1,221
—
1,541
Other deferred costs
81
—
71
(b)
1,302
—
1,612
—
Total
(a+b)
1,552
6
1,795
12
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
Miscellaneous receivables (non-current)
This item increased by 67 million euros compared to December 31, 2023 and includes:
■
receivables from subsidiaries for tax consolidation amounting to 3 million euros (140 million euros as of
December 31, 2023); the reduction is mainly related to the fact that the balance as of December 31, 2023
included a receivable from FiberCop S.p.A. in the amount of 135 million euros that was settled in 2024;
■
other receivables amounting to 247 million euros (43 million euros as of December 31, 2023), which mainly
include 211 million euros recognized in the second half of 2024 in connection with the non-current portion
of the receivable from FiberCop S.p.A. for services related to the MSA, which arose as part of the NetCo
transaction and 31 million euros due from the tax authority for income taxes (unchanged from December
31, 2023).
Other non-current assets
This item decreased by 310 million euros compared to December 31, 2023, and includes:
■
Deferred contract costs for 1,221 million euros (1,541 million euros at December 31, 2023): mainly related
to the deferral of costs connected to the activation and acquisitions of new contracts with customers.
Contractual costs (mainly technical activation costs and commissions for the sales network) were deferred
and charged to the separate income statements according to the expected duration of the contractual
relationship with customers (on average around 4 years for the mobile business and around 8 years for the
fixed-line business).
Total deferred non-current and current contract costs amounted to 1,710 million euros (2,095 million euros
at December 31, 2023); the breakdown of the total deferred non-current and current contract costs at
December 31, 2024 is provided below, as well as the related changes in the year:
(million euros)
12/31/2024
12/31/2023
Deferred contract costs
Non-current deferred contract costs
1,221
1,541
Current deferred contract costs
489
554
Total
1,710
2,095
(million euros)
12/31/2023
Discontinued
operations
Increase
Release to
income
statement
Other
changes
12/31/2024
Contract acquisition costs
1,426
(39)
389
(390)
—
1,386
Contract execution costs
669
(309)
72
(108)
—
324
Total deferred contract costs
2,095
(348)
461
(498)
—
1,710
Separate financial statements of
TIM S.p.A.
Note 9
Miscellaneous receivables and other non-current
assets
460
Total deferred contract costs will be recognized in the income statement of future years of the Company
and in particular, for approximately 489 million euros in 2025, based on the amount at December 31, 2024
without taking into account the new deferred portions. More specifically:
(million euros)
12/31/2024
Year of recognition in the income statement
2025
2026
2027
2028
2029
after
2029
Deferred contract costs
Contract acquisition costs
1,386
393
317
242
170
116
148
Contract execution costs
324
96
72
55
39
24
38
Total
1,710
489
389
297
209
140
186
■
Other deferred costs of 81 million euros (71 million euros at December 31, 2023): mainly referred to costs
for leased assets.
Separate financial statements of
TIM S.p.A.
Note 9
Miscellaneous receivables and other non-current
assets
461
NOTE 10
INCOME TAX EXPENSE (CURRENT AND
DEFERRED)
Current income tax receivables
Non-current income tax receivables (classified as Miscellaneous receivables and other non-current assets)
amounted to 31 million euros at December 31, 2024, which is unchanged compared to the previous year; they
relate to non-assigned receivables for taxes and interest resulting from the recognized deductibility for IRES tax
purposes of the IRAP tax calculated on labor costs, relating to years prior to 2012, following the entry into force
of Italian Decree Law 16/2012.
Current tax receivables came to 48 million euros and were up 6 million euros on December 31, 2023 (42
million euros); included receivables for tax paid abroad for 17 million euros, residual IRAP from previous years
for 15 million euros, tax consolidation credit for 13 million euros, and other tax receivables of 3 million euros.
Tax assets and deferred tax liabilities
The net balance is composed as follows:
(million euros)
12/31/2024
12/31/2023
Deferred tax assets
299
406
Deferred tax liabilities
—
—
Total
299
406
The 2024 financial statements do not include IRES deferred tax for current period and prior period tax losses
nor do they include IRAP deferred tax assets/liabilities, (as was the case in the previous financial statements),
in consideration of the assessment of the time frame for recoverability of deferred tax assets of TIM S.p.A.
The presentation of deferred tax assets and liabilities in the financial statements takes account of offsets to
the extent that such offsets are legally permitted. The composition of the gross amounts prior to offsetting is
presented below:
(million euros)
12/31/2024
12/31/2023
Deferred tax assets
303
431
Deferred tax liabilities
(4)
(25)
Total
299
406
Separate financial statements of
TIM S.p.A.
Note 10
Income taxes (current and deferred)
462
Deferred tax assets and deferred tax liabilities which made up this line item at December 31, 2024 and 2023, as
well as the movements during 2024 were as follows, broken down by type of temporary differences:
(million euros)
12/31/2023
Recognized in
profit or loss
Recognized in
equity
Other
changes
12/31/2024
Deferred tax assets:
Provisions for pension fund integration
Law 58/92
3
—
—
—
3
Provisions
126
(21)
—
—
105
Provision for bad debts
76
(15)
—
—
61
Financial instruments
106
—
(53)
—
53
Taxed depreciation and amortization
103
3
—
(41)
65
Tax losses (*)
—
—
—
—
—
Other deferred tax assets
17
(1)
—
—
16
Total
431
(34)
(53)
(41)
303
Deferred tax liabilities:
Accelerated depreciation
(3)
—
—
3
—
Bond issue expense
(1)
—
—
—
(1)
Other deferred tax liabilities
(21)
2
—
16
(3)
Total
(25)
2
—
19
(4)
Total Deferred tax assets net of
Deferred tax liabilities
406
(32)
(53)
(22)
299
(*) For the new flow of tax losses in 2024, no deferred tax assets are entered
It should be noted that the Other Changes column includes Deferred Tax Assets and Deferred Tax Liabilities
that were contributed as part of the NetCo transaction.
The expirations of deferred tax assets and deferred tax liabilities at December 31, 2024 were the following:
(million euros)
Within next
year
Beyond 1 year
year
Total
at Dec 31, 2024
Deferred tax assets
123
180
303
Deferred tax liabilities
(2)
(2)
(4)
Total Deferred tax assets net of Deferred tax liabilities
121
178
299
The company has not posted deferred IRES tax assets for 982 million euros on tax losses and for 102 million
euros on benefits for Aid to economic growth (ACE), and IRAP deferred tax assets for 15 million euros.
Current income tax payables
As of December 31, 2024, current tax payables were zero (unchanged from December 31, 2023), while
noncurrent tax payables were 1 million euros (not present as of December 31, 2023).
Separate financial statements of
TIM S.p.A.
Note 10
Income taxes (current and deferred)
463
Income tax expense
The income tax expense for the years ended December 31, 2024 and 2023 is detailed below:
(million euros)
2024
2023
IRAP taxes for current year
—
—
IRES taxes for current year
—
—
Substitute tax pursuant to Decree Law 104/2020 art. 110
—
—
Expenses/(income) from tax consolidation
(2)
(132)
Current taxes of prior years
1
(2)
Total current taxes
(1)
(134)
Deferred taxes for the year
30
79
Deferred taxes of prior years
2
9
Total deferred taxes
32
88
Total income tax expense for the year
31
(46)
The current IRES tax rate is 24%, while the effective IRAP tax rate is 4.5%.
Income for current taxes is represented by the benefit of tax consolidation (2 million euros) partially offset by
taxes from previous years (1 million euros) related to the effects of the tax return compared to the estimate
made in the 2023 financial statements on the basis of the information available at the time.
The current tax benefits juxtaposes with the deferred tax expense of 32 million euros, of which 2 million euros
relate to previous years.
The reconciliation between the theoretical tax charge, calculated on the basis of the IRES tax rate in effect at
December 31, 2024 (24%), and the effective tax charge in the financial statements is as follows:
(million euros)
2024
2023
Result before tax
From continuing operations
(545)
386
Derived from Discontinued operations/Non-current assets held for sale
(666)
(1,427)
Total profit (loss) before tax
(1,211)
(1,041)
Theoretical income tax expense
(291)
(250)
Income tax effect on increases (decreases) in variations:
dividends recognized in income
(4)
(257)
impairment losses, gains and losses on investments
98
40
non-deductible depreciation, amortization and impairments
15
1
non-deductible costs
4
9
other items
(4)
18
IRES taxes for previous years
3
8
Suspension of period tax losses (failure to enter deferred tax)
210
385
Actual taxes on income statement, excluding IRAP
31
(46)
IRAP (Regional Tax on Production Activities)
—
—
Total of actual taxes to income statement
31
(46)
For the purpose of a better understanding of the reconciliation under consideration, the impacts of IRAP have
been kept separate to avoid any distorting effect, as this tax is commensurate with a different tax base than
pre-tax income.
∂
Global Minimum Tax
Legislative Decree no. 209 of December 27, 2023, implementing the international tax reform, transposed
European Union Council Directive no. 2022/2523/EU (the “Directive”), which implements the rules developed
by the OECD on Pillar 2 and Global Minimum Tax (“Model Rules” or “GloBE Rules”). The new rules took effect
on January 1, 2024.
To give a very brief overview, the GloBE Rules introduce a coordinated system of rules for multinational groups
with total revenues of 750 million euros or more, aimed at ensuring that they are subject to a minimum tax
level of at least 15% in relation to income generated in each country in which they operate. The GloBE Rules
provide for the application of a top-up tax due if the effective tax rate (“ETR”) calculated for each country
according to the common rules is below 15%, up to that level. The ETR is equal to the ratio of taxes paid (with
adjustments) to accounting profit (with adjustments). Both the calculation of the effective tax rate and the
supplementary tax are done on a jurisdictional (i.e. country-by-country) basis.
Separate financial statements of
TIM S.p.A.
Note 10
Income taxes (current and deferred)
464
The OECD has developed a system of safe harbours (i.e. tests) applicable during the first three-year period of
the GloBE Rules (until 2026), which will make it possible to avoid making the complex calculations required and
to consider the supplementary tax due in a given state to be zero if one of the following tests is passed:
■
de minimis test: aggregate revenue in that state is less than 10 million euros and aggregate pre-tax profit
is less than 1 million euros (or a loss);
■
simplified ETR test: The effective tax level is at least 15% (for 2024), 16% (for 2025) and 17% (for 2026) and
is to be determined on the basis of the ratio of the aggregate values of pre-tax profit/loss (denominator)
and income tax (numerator);
■
routine profit test: the economic substance present in a given jurisdiction (calculated assuming a given
implied profitability of tangible assets and personnel costs located in the jurisdiction) is greater than the
aggregate amount of pre-tax profit/loss. In the event that the group is found to have a pre-tax loss, the
test will be regarded as positive.
As part of the scope of application of the GloBE Rules, TIM S.p.A. has been engaged for some time in analyzing
the new rules and structuring an internal process for collecting the data necessary to make the calculations
expected when fully implemented.
TIM S.p.A. carried out a preliminary analysis of 2024 data with reference to the application of safe harbours to
the jurisdictions in which it operates. From the calculations made and based on the best interpretation of
documents published by the OECD, virtually all countries pass at least one of the tests. The only notable
exception concerns the jurisdiction of Luxembourg, which does not appear to be covered by any of the safe
harbors examined. In this regard, it should be noted that Luxembourg has adopted by domestic legislation the
GloBE Rules and the respective Qualified Domestic Minimum Top-Up Tax (also "QDMTT") has been in effect
since 2024. Although further studies are still being carried out on the matter, it is believed that there are valid
reasons why, in any case, no additional material imposition should emerge from this situation in the analyzed
jurisdiction.
Separate financial statements of
TIM S.p.A.
Note 10
Income taxes (current and deferred)
465
NOTE 11
INVENTORIES
At December 31, 2024, these amounted to 148 million euros (198 million euros at December 31, 2023) and
mainly consisted of fixed and mobile telecommunications equipment and terminals and the related
accessories.
This item increased by 50 million euros compared to December 31, 2023; this trend is mainly attributable to the
NetCo transaction.
In 2024, write-downs of inventories amounted to 4 million euros.
No inventories are pledged as collateral.
NOTE 12
TRADE AND MISCELLANEOUS RECEIVABLES
AND OTHER CURRENT ASSETS
Trade and miscellaneous receivables and other current assets at December 31, 2024 breaks down as follows:
(million euros)
12/31/2024
of which Financial
Instruments
12/31/2023
of which
Financial
Instruments
Trade receivables
Receivables from customers
736
736
408
408
Receivables from other telecommunications
390
390
1,411
1,411
Receivables from subsidiaries
225
225
1,009
1,009
Receivables from associates and joint ventures
186
186
46
46
Receivables from other related parties
9
9
25
25
Customer collections pending credit
9
9
8
8
(a)
1,555
1,555
2,907
2,907
Miscellaneous receivables (current)
Receivables from subsidiaries
5
—
163
—
Receivables from associates and joint ventures
—
—
—
—
Receivables from other related parties
—
—
—
—
Other receivables
681
66
502
55
(b)
686
66
665
55
Other current assets
Contract assets
24
24
31
31
Deferred contract costs
489
—
554
—
Other deferred costs
360
—
347
—
Other
25
—
57
—
(c)
898
24
989
31
Total
(a+b+c)
3,139
1,645
4,561
2,993
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
Separate financial statements of
TIM S.p.A.
Note 11
Inventories
466
The analyses of the aging of the financial instruments included in Trade and miscellaneous receivables and
other current assets at December 31, 2024 and December 31, 2023 are provided below:
Overdue:
(million euros)
12/31/2024
of which
non-
overdue
of which
overdue
0-90 days
91-180 days
181-365 days
More than
365 days
Trade and
miscellaneous
receivables and other
current assets
1,645
1,428
217
23
32
—
162
Overdue:
(million euros)
12/31/2023
of which
non-
overdue
of which
overdue
0-90 days
91-180 days
181-365 days
More than
365 days
Trade and
miscellaneous
receivables and other
current assets
2,993
2,677
316
96
35
41
144
Financial instruments included in trade and miscellaneous receivables and other current assets include Assets
deriving from contracts with customers (Contract Assets) for 24 million euros; decreased compared to
December 31, 2023 by 1,348 million euros mainly due to the NetCo transaction. Specifically:
■
current net receivables: recorded a decrease of 1,249 million euros, mainly due to the NetCo transaction,
compounded by the management dynamics of reducing receivables, particularly from subscribers;
■
overdue net receivables: decreased by 99 million, particularly in the ageing ranges up to 365 days; the
reduction is mainly attributable to the impacts of the NetCo transaction and is concentrated in the 0-90
day ageing range, where stocks contracted by 73 million also due to improved collection performance and
revenue dynamics in the subscriber segment.
Trade receivables
These came to 1,555 million euros (2,907 million euros at December 31, 2023) and were net of the related
provision for bad debts of 239 million euros (316 million euros at December 31, 2023); in particular, the provision
for bad debt at December 31, 2024 was impacted by the provisions made in 2024 for a total of 45 million euros.
Movements in the provision for bad debts were as follows:
(million euros)
12/31/2024
12/31/2023
At January 1
316
365
Discontinued operations
(11)
—
Provision charges to the income statement
45
62
Draw downs and other changes
(111)
(111)
At December 31
239
316
Trade receivables decreased by 1,352 million euros compared to December 31, 2023, mainly in connection with
the NetCo transaction.
In particular, we report:
■
receivables from customers: amounted to 736 million euros and increased by 328 million euros compared
to December 31, 2023;
■
receivables from other operators: amounted to 390 million euros and decreased by 1,021 million euros
compared to December 31, 2023 substantially due to the NetCo transaction;
■
receivables from subsidiaries: amounted to 225 million euros and decreased by 784 million euros compared
to December 31, 2023, mainly as a result of FiberCop S.p.A. (-771 million euros) and Telenergia S.r.l. (-2
million euros) leaving the scope of consolidation. This item refers to receivables for the supply of TLC
products and services, mainly to Noovle S.p.A. Benefit Company (150 million euros), TIM S.A. (24 million
euros), TIM Retail S.r.l. (20 million euros) and Telecom Italia Sparkle S.p.A. (16 million euros);
■
receivables from associates: amounted to 186 million euros (46 million euros at December 31, 2023) and
mainly relate to the supply of services to Polo Strategico Nazionale S.p.A.;
■
receivables from associates amounted to 9 million euros (25 million euros at December 31, 2023) and
mainly relate to the supply of services to the Cassa Depositi e Prestiti Group.
Separate financial statements of
TIM S.p.A.
Note 12
Trade and miscellaneous receivables and other
current assets
467
Miscellaneous receivables (current)
Amounted to 686 million euros (net of a provision for bad debts of 39 million euros), increasing by 21 million
euros compared to December 31, 2023. They include:
■
receivables from subsidiaries: these amounted to 5 million euros (163 million euros at December 31, 2023)
and mainly related to receivables from Group companies for the tax consolidation (4 million euros); the
decrease in the item by 158 million euros is substantially due to the exit of FiberCop S.p.A. from the scope
of consolidation (-154 million euros);
■
other receivables: totaled 681 million and break down as follows:
(million euros)
12/31/2024
12/31/2023
Advances to suppliers
140
304
Receivables from employees
6
8
Tax receivables
58
15
Receivables for grants from the government and public entities
11
10
Sundry receivables
466
165
Total
681
502
Tax receivables, amounting to 58 million euros, are mainly represented by the VAT credit (57 million euros).
Receivables for grants from State and Public Entities (11 million euros) mainly pertain to projects not related to
network infrastructure, financed by MISE and the European Community, in particular projects related to
Emerging Technology Centers, while the figure as of December 31, 2023 pertained mainly to projects called
Ultra Broadband-BUL and Broadband-BL, which were the subject of conferment as part of the NetCo
transaction. Recognition of these grants in the income statement is made, in the case of capital grants, on a
systematic basis over the useful life of the assets to which the grants relate or, in the case of operating grants,
on a systematic basis over the periods in which the Company recognizes as costs the related expenses that the
grants are intended to offset.
Sundry receivables mainly included:
■
receivable for tax consolidation from FiberCop S.p.A. (135 million euros) and from Telenergia S.p.A. (2
million euros), which as of December 31, 2023, however, were included among the subsidiaries;
■
the current portion (98 million euros) of the receivable from FiberCop S.p.A. for services related to the MSA,
which arose as part of the NetCo transaction;
■
receivables for Universal Service (52 million euros);
■
receivables from social security and pension institutions (48 million euros);
■
receivable for repayment of portion of the penalty pertaining to the A514 proceeding (32 million euros), as
per the Council of State ruling of November 13, 2024;
■
miscellaneous receivables from other TLC operators (27 million euros);
■
receivables for with-recourse assignments to factoring companies (23 million euros).
Other current assets
Amounted to 898 million and decreased by 91 million compared to December 31, 2023; it included:
■
Contract assets: amounted to 24 million euros (31 million euros as of December 31, 2023) and refer to:
•
11 million euros for the advance recognition of revenues for those bundle contracts (such as product
and service packages) with the individual performance obligations with different timing for their
recognition, in which goods recognized "at point in time" are sold at a discounted price, or for those
contracts which, envisaging a discount for a period of time less than the minimum contract duration,
pursuant to IFRS 15 need the discount to be reallocated over the minimum contract duration;
•
13 million euros to the work carried out in connection with the "5G Coverage Plan" under the NRRP.
Contract Assets - net of the related provision for impairment of 1 million euros - decreased by 7 million
euros compared to December 31, 2023, mainly due to the contribution, as part of the NetCo transaction, of
the contract assets relating to the Italia 1G Plan and the 5G Backhauling Plan included in the PNRR (-17
million euros), an effect partially offset by the increase in activities relating to the 5G Coverage Plan (+12
million euros), which had just started in 2023.
■
Deferred contract costs (489 million euros, 554 million euros at December 31, 2023): Contractual costs
(mainly technical activation costs and commissions for the sales network) were deferred and charged to
the separate income statements according to the expected duration of the contractual relationship with
customers (on average around 4 years for the mobile business and around 8 years for the fixed-line
business). For additional details on the deferred contract costs and their movement during the year, refer
to the Note "Miscellaneous receivables and other non-current assets";
■
Other deferred costs: amounted to 360 million euros (347 million euros as of December 31, 2023) and refer
to:
•
294 million euros for the deferral of costs related to rental fees and other lease and rental costs;
Separate financial statements of
TIM S.p.A.
Note 12
Trade and miscellaneous receivables and other
current assets
468
•
53 million euros for the deferral of after-sales expenses on application offers;
•
3 million euros for the deferral of costs for the purchase of products and services;
•
5 million euros for maintenance fees;
•
5 million euros for insurance premiums.
■
Other (25 million euros, 57 million euros at December 31, 2023): Are related to receivables for contract
work.
Separate financial statements of
TIM S.p.A.
Note 12
Trade and miscellaneous receivables and other
current assets
469
NOTE 13
DISCONTINUED OPERATIONS /NON-CURRENT
ASSETS HELD FOR SALE
At its meeting of July 6, 2022, TIM's Board of Directors approved the strategic objective of reorganizing the
Company with the aim of leaving behind the Company’s vertical integration.
In November 2023, the Board of Directors of TIM S.p.A., as a result of an extensive and thorough review
conducted with the assistance of leading financial and legal advisors, reviewed and accepted the binding offer
submitted on October 16, 2023 by Kohlberg Kravis Roberts & Co. L.P. ("KKR") for the purchase of TIM's fixed-line
network assets and equity interests held in FiberCop S.p.A. and Telenergia S.r.l. (also referred to as the
"NetCo"), by Optics BidCo S.p.A. (a subsidiary of KKR) (hereinafter referred to as the "NetCo Disposal").
Following acceptance of the offer, TIM S.p.A. then signed a Transaction Agreement with Optics BidCo that
provided:
■
the contribution by TIM S.p.A. of a business unit (the "Business Unit") - consisting of the activities related to
the Primary Network, the so-called""Wholesale" business and the entire stake in the subsidiary Telenergia
S.r.l. - in FiberCop S.p.A. ("FiberCop"), a company that already managed the activities related to the
secondary fiber and copper network, and
■
the simultaneous purchase by Optics Bidco of the entire shareholding held by TIM S.p.A. in FiberCop S.p.A.
itself, following the aforementioned transfer.
The Transaction Agreement also provided that the consideration for the sale of the stake could also be partially
paid through the transfer to Optics BidCo of part of the TIM Group's debt at the same time as the closing of the
NetCo Disposal ( Liability Management/ Exchange Offers).
In detail, three Exchange Offers were made of new bonds issued by Optics BidCo with bonds previously issued
by TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A. As of the closing date, a par value of
3,669,680,000 euros was exchanged for bonds issued by TIM S.p.A. and Telecom Italia Finance S.A., and a par
value of USD 2,000,011,000 for bonds issued by Telecom Italia Capital S.A. The new bonds issued by Optics
BidCo have essentially the same terms as the corresponding original bond series, including maturity, interest
rate, interest payment dates and so-called restrictive covenants.
Preliminary activities carried out by TIM S.p.A. for the Disposal of NetCo include obtaining the following
authorizations:
■
authorization on distortionary foreign subsidies and authorization under the Golden Power framework
(obtained in January 2024);
■
authorization of the divestment from the European Commission (obtained in May 2024).
Following those authorizations being obtained, TIM S.p.A. made the transfer of the Business Unit to FiberCop
with effect on July 1, 2024. also on July 1, 2024, TIM S.p.A. transferred to Optics Bidco the entire stake it held in
the share capital of FiberCop and signed, with FiberCop, the so-called Master Services Agreement governing
the terms and conditions of the services that are rendered between NetCo and TIM S.p.A.. .
The total consideration for the sale of NetCo amounted to 10,536 million euros, of which 4,247 million euros
were settled through cash and other cash equivalents, 5,534 million euros related to the face value of bonds
subject to "Exchange Offers," and 755 million euros related to the fair value recognition of usage rights on B2B
connectivity (with varying durations between 7 and 20 years); The total consideration does not take into
account any additional adjustments related to the usual post-closing price adjustment mechanisms.
As part of the transaction, there is also provision for the recognition of possible earn-outs in favor of TIM, linked
to the occurrence of future events such as, in particular:
■
the completion, during the 30 months following the closing date (July 1, 2024), of certain potential
consolidation transactions involving NetCo and to the possible introduction of regulatory changes suitable
for generating benefits in favor of NetCo, which could result in the payment to TIM of up to 2.5 billion euros;
■
the introduction and entry into force by December 31, 2025, of industry incentives that could result in the
payment to TIM of up to 400 million euros.
It is finally recalled that the Master Services Agreement governing the relationship between TIM S.p.A. and
NetCo became effective as of July 1, 2024.
∂
Separate financial statements of
TIM S.p.A.
Note 13
Discontinued operations/non-current assets held
for sale
470
The component items of "Profit (loss) from Discontinued operations/Non-current assets held for sale" within
the income statement are as follows:
(million euros)
2024
2023
Economic effects of Discontinued operations / Non-current assets
held for sale:
Revenues
1,547
3,173
Other income
34
97
Acquisition of goods and services
(1,274)
(2,530)
Employee benefits expenses
(551)
(1,025)
Other operating expenses/Change in inventories/Internally generated
assets
19
88
Operating profit (loss) before depreciation and amortization, capital
gains (losses) and impairment reversals (losses) on non-current
assets (EBITDA)
(225)
(197)
Depreciation and amortization
(515)
(1,105)
Gains (losses) on disposals of non-current assets
—
—
Impairment reversals (losses) on non-current assets
—
—
Operating profit (loss) (EBIT)
(740)
(1,302)
Net financial income/expense and other from investments
(67)
(125)
Earnings before tax from Discontinued operations/Non-current assets
held for sale
(807)
(1,427)
Income tax expense
—
—
Profit (loss) from Discontinued operations / Non current assets held
for sale
(a)
(807)
(1,427)
Economic effects on disposing entities:
Net capital gain related to disposal
341
—
Incidental charges and other minor items related to the NetCo
transaction
(200)
—
Income tax expense related to the disposal
—
—
(b)
141
—
Profit (loss) from Discontinued operations / Non current assets held
for sale
(a+b)
(666)
(1,427)
Economic effects of “Discontinued operations / Non-current assets held for sale” include:
■
NetCo's economic performance (-807 million in 2024; -1,427 million in 2023), whose contribution was
completed on July 1, 2024;
■
in fiscal year 2024 the gross capital gain related to the sale of the investment in FiberCop S.p.A. (341 million
euros) and related incidental expenses (200 million euros). The net capital gain is thus 141 million euros.
It should be recalled that the results of the Business Unit being transferred from TIM S.p.A. to FiberCop S.p.A.
do not incorporate in the year 2023 and for the first six months of 2024 the positive impacts resulting from the
MSA that took effect as of July 1, 2024 and that regulates the provision of services between the two entities.
On the disposal, NetCo's assets and liabilities were detailed as follows:
NetCo - Assets of a financial nature
(million euros)
Non-current financial assets
15
Current financial assets
51
of which Cash and cash equivalents
—
Total
66
Separate financial statements of
TIM S.p.A.
Note 13
Discontinued operations/non-current assets held
for sale
471
NetCo - Assets of a non-financial nature
(million euros)
Non-current assets
Goodwill
—
Intangible assets with a finite useful life
187
Tangible assets
4,709
Rights of use assets
2,361
Other non-current assets
277
7,534
Current assets
1,618
Total
9,152
NetCo - Liabilities of a financial nature
(million euros)
Non-current financial liabilities
1,851
Current financial liabilities
288
Total
2,139
These are financial liabilities for leasing contracts recorded in application of IFRS 16.
NetCo - Liabilities of a non-financial nature
(million euros)
Non-current liabilities
850
Current liabilities
2,227
Total
3,077
Also included in the Statement of Comprehensive Income were 11 million euros in 2024 and -5 million euros in
2023 relating to the recognition of changes in actuarial gains/losses included in the Reserve for
remeasurements of defined benefit plans within “Discontinued Operations/Non-current Assets Held for Sale”.
Therefore, the total income from “Discontinued Operations/Non-current Assets held for sale” is negative 655
million euros in 2024 and negative 1,432 million euros in 2023.
Within the Statement of Cash Flows, the net impacts of "Discontinued operations/Non-current assets held for
sale" are detailed as follows:
(million euros)
2024
2023
Discontinued operations /Non-current assets held for sale:
Cash flows from (used in) operating activities
(635)
(404)
Cash flows from (used in) investing activities
(388)
(549)
Cash flows from (used in) financing activities
(151)
(298)
Total
(1,174)
(1,251)
Separate financial statements of
TIM S.p.A.
Note 13
Discontinued operations/non-current assets held
for sale
472
NOTE 14
EQUITY
This item is composed as follows:
(million euros)
12/31/2024
12/31/2023
Share capital issued
11,677
11,677
less Treasury shares
(53)
(57)
Share capital
11,624
11,620
Additional paid-in capital
—
575
Legal reserve
1,915
2,335
Other reserves
(194)
(379)
Retained earnings, including profit (loss) for the year
(1,242)
(995)
Total
12,103
13,156
Movements in share capital during 2024 are presented in the following tables:
Reconciliation between the number of shares outstanding at 12/31/2023 and at 12/31/2024
(number of shares)
at 12/31/2023
Share assignment/
issue
at Dec 31, 2024
% of Share
Capital
Ordinary shares Issued
(a)
15,329,466,496
15,329,466,496
71.78
less: treasury shares
(b)
(105,062,422)
8,619,620
(96,442,802)
Ordinary shares outstanding
(c)
15,224,404,074
8,619,620
15,233,023,694
Savings shares issued
and outstanding
(d)
6,027,791,699
—
6,027,791,699
28.22
Total shares issued
(a+d)
21,357,258,195
—
21,357,258,195
100.00
Total shares outstanding
(c+d)
21,252,195,773
8,619,620
21,260,815,393
Reconciliation between the value of shares outstanding at 12/31/2023 and at 12/31/2024
(thousands of euros)
Share capital at Dec
31, 2023
Change
in share capital
Share capital at Dec
31, 2024
Ordinary shares Issued
(a)
8,381,330
8,381,330
less: treasury shares
(b)
(57,443)
4,713
(52,730)
Ordinary shares outstanding
(c)
8,323,887
4,713
8,328,600
Savings shares issued and outstanding
(d)
3,295,673
3,295,673
Total share capital issued
(a+d)
11,677,003
—
11,677,003
Total share capital outstanding
(c+d)
11,619,560
4,713
11,624,273
During 2024, treasury shares decreased by 8,619,620 (4,713 thousand euros) in execution of the second cycle of
the Long Term Incentive Plan 2021-2023.
Separate financial statements of
TIM S.p.A.
Note 14
Equity
473
Disclosure on share capital
The ordinary and savings shares of TIM S.p.A. are listed in Italy (FTSE index).
In the shareholder resolutions passed to increase share capital against cash payments, the pre-emption right
can be excluded to the maximum extent of ten percent of the pre-existing share capital, on condition that the
issue price corresponds to the market price of the shares and that this is confirmed in a specific report issued
by the firm charged with the audit of the Company.
The Company sources itself with the capital necessary to fund its requirements for business development and
operations; the sources of funds are found in a balanced mix of equity, permanently invested by the
shareholders, and debt capital, to guarantee a balanced financial structure and minimize the total cost of
capital, with a resulting advantage to all the stakeholders.
Debt capital is structured according to different maturities and currencies to ensure an adequate diversification
of the sources of funding and an efficient access to external sources of financing (taking advantage of the best
opportunities offered in the financial markets of the euro and U.S. dollar areas to minimize costs), taking care
to reduce the refinancing risk.
The remuneration of equity is proposed by the Board of Directors to the Shareholders’ Meeting, which meets to
approve the annual financial statements, based upon market trends and business performance, once all the
other obligations are met, including debt servicing. Therefore, in order to guarantee an adequate remuneration
of capital, safeguard company continuity and business development, the Company constantly monitors the
change in debt levels in relation to equity, the level of net debt and the operating margin of industrial
operations.
Privileges of savings shares
The privileges of TIM S.p.A. savings shares are indicated below:
■
the profit shown in the duly approved financial statements, after deducting the amount to be allocated to
the legal reserve, must be distributed to the holders of savings shares in an amount up to 5% of the 0.55
euros per share;
■
after assigning preferred dividends to the savings shares, the distribution of which is approved by the
shareholders' meeting, the remaining profit shall be allocated among all the shares, so that savings shares
are entitled to higher overall dividends than ordinary shares would be entitled to, to the extent of 2% of
0.55 euros per share;
■
when, in any one year, dividends of below 5% of the 0.55 euros per share are paid to the savings shares,
the difference is determined as an increase of the privileged dividend in the next two subsequent years;
■
in the event of a distribution of reserves, the savings shares have the same rights as the other shares.
Moreover, when there is no profit or insufficient profit is reported in the financial statements for a given
year to satisfy the aforesaid savings shares privileges, the Shareholders’ Meeting called to approve those
financial statements may choose to satisfy the dividend right and/or the higher dividend right by
distributing available reserves. The distribution of available reserves for such payments excludes the
application of the mechanism extending the right to the preferred dividend not paid through the
distribution of profits for the following two years;
■
the reduction of share capital as a result of losses does not affect the savings shares except for the
amount of the loss which is not covered by the portion of the share capital represented by the other
shares;
■
upon the wind-up of TIM S.p.A., the savings shares have a pre-emption right in the reimbursement of
capital up to the amount of 0.55 euros per share;
■
in the event of the cessation of trading in the Company's ordinary or savings shares, the holder of savings
shares may ask TIM S.p.A. to convert his/her shares into ordinary shares, using the method selected during
a special session of the shareholders' meeting called for that purpose within two months of being excluded
from trading.
It bears noting that share capital carries a tax suspension restriction for an amount equal to 1,191 million euros
(unchanged compared to December 31, 2023).
∂
The Share Premium Reserve, which amounted to 575 million euros as of December 31, 2023, was zero as of
December 31, 2024 as a result of covering the loss for the year 2023, as resolved by the Shareholders' Meeting
on April 23, 2024.
The Legal Reserve, amounting to 1,915 million euros as of December 31, 2024, decreased by 420 compared to
December 31, 2023 as a result of the coverage of the loss for the year 2023, as resolved by the Shareholders'
Meeting on April 23, 2024. The reserve carries a tax suspension restriction up to 1,415 million euros.
Other reserves totaled a negative value of 194 million euros as of December 31, 2024, a decrease in absolute
value of 185 million euros compared to December 31, 2023.
The Other reserves moved through the Statements of Comprehensive Income are broken down as follows:
Separate financial statements of
TIM S.p.A.
Note 14
Equity
474
■
Reserve for remeasurements of employee defined benefit plans (negative 60 million euros): decreased, in
absolute terms, by 13 million euros compared to December 31, 2023, following actuarial gains on
severance pay for the 2024 financial year;
■
Reserve for hedging instruments (negative 162 million euros, down 165 million euros in absolute terms
compared to December 31, 2023): this reserve is related to the accounting of cash flow hedge transactions.
In particular, it refers to unrealized gains and losses, net of the related tax effect, arising from the fair value
adjustment of the financial instruments designated as cash flow hedges;
■
Reserve for financial assets measured at fair value through other comprehensive income (positive for 14
million euros): this reserve increased by 11 million euros compared to December 31, 2023.
The Other reserves also include:
■
Reserve for other equity instruments: totaled 4 million euros (down 16 million euros from December 31,
2023) and relates to the 2022-2024 Stock Option Plan approved by the Shareholders' Meeting on April 7,
2022. The decrease compared to last year is substantially attributable to the fact that during 2024 a
number of shares amounting to 8,619,620 were granted in execution of the second cycle 2021-2023 of the
Long Term Incentive Plan 2020-2022, which was approved by the Shareholders' Meeting on April 23, 2020,
and consequently the related reserve (amounting to 17 million euros as of December 31, 2023) was fully
released.
For further details, refer to the Note 38 “Equity Compensation Plans”.
■
Other reserves: totaled 10 million euros, an increase of 12 million euros compared to December 31, 2023
due to the allocation of treasury shares in execution of the second cycle 2021-2023 of the Long Term
Incentive Plan.
Retained earnings (accumulated losses), including result for the year, was negative for 1,242 million euros at
December 31, 2024 (negative for 995 million euros at December 31, 2023) and refer to the 2024 loss.
The following statement provides additional disclosure on equity and is prepared pursuant to Article 2427,
number 7-bis, showing the items in equity separately according to their source, possibility of utilization and
distribution, in addition to their utilization in the three-year period 2022-2024.
Summary pursuant to Article 2427, no. 7-bis
Nature/description
Amount
as of
12/31/202
4
Potential
utilization
Amount
available
Summary of utilizations made
in the three-year period 2022-2024
(million euros)
for loss coverage
for other
reasons
Share capital
11,624
Capital reserves:
Additional paid-in capital
—
—
2,133
Legal reserve
1,533
B
—
420
Reserve for other equity instruments
4
B
—
Reserve for remeasurements of defined
benefit plans
57
A,B,C
57
Profit reserves:
Legal reserve
382
B
—
Other reserves
12
A,B,C
12
Reserve for hedging instruments and
related underlying instruments
(162)
—
Reserve for available-for-sale financial
assets
14
B
—
Reserve for remeasurements of defined
benefit plans
(117)
A,B,C
(117)
Total
13,347
(48)
2,553
—
Treasury shares
(54)
Residual distributable percentage
(102)
Key:
A = for increases in capital;
B = for loss coverage;
C = for distribution to shareholders
The table below shows the restrictions, relating to off-book tax deductions effected for income tax purposes in
past years, pursuant to Article 109, subsection 4, letter b) of TUIR:
Separate financial statements of
TIM S.p.A.
Note 14
Equity
475
(million euros)
Off-book deductions at 12/31/2023
17
Reversal for taxation during the year
(1)
Share contributed as part of the NetCo transaction
(15)
Off-book deductions at 12/31/2024
1
Deferred taxes
—
Restriction on equity at 12/31/2024
1
In this regard, a restriction was imposed on all equity reserves, without distinction, for an amount equal to the
off-book deductions net of the related deferred taxes. This restriction remains until such time as the excess tax
deductions and consequent taxation are recovered in the books.
More specifically, it should be noted that a restriction of 15 million euros was conferred as part of the NetCo
transaction, in connection with the transfer of the underlying assets.
Therefore, taking into account the residual deductions effected in prior years and not covered by the fiscal
realignment carried out in accordance with Italian Law 244 dated December 24, 2007, the total restriction on
equity in the financial statements amounts to 1 million euros.
Future potential changes in share capital
The table below shows future potential changes in share capital, based on the long-term share incentive plans,
still outstanding at December 31, 2024:
Number of
maximum
shares issuable
Share
capital
(thousand
s of euros)
Additional
paid-in
capital
(thousands of
euros)
Subscription
price per
share
(euros)
Capital increases already approved (ordinary shares)
Stock Options Plan 2022-2024
257,763,000
109,292
0.424
Total
257,763,000
109,292
Further information is provided in Note 15 “Non-current and current financial liabilities” and Note 38 “Equity
compensation plans”.
Separate financial statements of
TIM S.p.A.
Note 14
Equity
476
NOTE 15
NON-CURRENT AND CURRENT FINANCIAL
LIABILITIES
Non-current and current financial liabilities (gross financial debt) are broken down as follows:
(million euros)
12/31/2024
12/31/2023
Non-current financial liabilities for financing contracts and others
Non-current financial payables:
Bonds
4,123
9,445
Amounts due to banks
580
3,634
Payables to other lenders
33
10
Payables due to subsidiaries
1,968
3,864
6,704
16,953
Other non-current financial liabilities:
Hedging derivatives relating to hedged items classified as non-
current assets/liabilities of a financial nature
170
398
Non-hedging derivatives
490
741
Other liabilities
1
2
661
1,141
(a)
7,365
18,094
Non-current financial liabilities for lease contracts
Payables to subsidiaries
16
21
Payables to third parties
628
2,689
(b)
644
2,710
Total non-current financial liabilities
c=(a+b)
8,009
20,804
Current financial liabilities for financing contracts and others
Current financial payables:
Bonds
2,127
3,007
Amounts due to banks
813
794
Payables to other lenders
242
224
Payables due to subsidiaries
1,588
1,845
Payables to associates
1
2
4,771
5,872
Other current financial liabilities:
Hedging derivatives relating to hedged items classified as current
assets/liabilities of a financial nature
7
32
Non-hedging derivatives
47
79
Other liabilities
—
—
54
111
(d)
4,825
5,983
Current financial liabilities for lease contracts
Payables to subsidiaries
3
38
Payables to third parties
228
429
(e)
231
467
Total Current financial liabilities
f=(d+e)
5,056
6,450
Total financial liabilities (Gross Financial Debt)
g=(c+f)
13,065
27,254
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
Separate financial statements of
TIM S.p.A.
Note 15
Financial liabilities (non-current and current)
477
Gross financial debt according to the original currency of the transaction is as follows:
12/31/2024
12/31/2023
(millions in foreign
currency)
(million euros)
(millions in foreign
currency)
(million euros)
USD
500
481
2,515
2,276
JPY
20,000
123
20,000
128
EUR
12,461
24,850
Total
13,065
27,254
The breakdown of gross financial debt by effective interest-rate bands applicable to the original transaction is
provided below, excluding the effect of any derivative hedging instruments:
(million euros)
12/31/2024
12/31/2023
Up to 2.5%
1,504
2,541
From 2.5% to 5%
6,715
9,555
From 5% to 7.5%
2,186
10,241
From 7.5% to 10%
1,727
3,225
Over 10%
—
3
Accruals/deferrals, MTM and derivatives
933
1,689
Total
13,065
27,254
Following the use of hedging instruments, on the other hand, gross financial debt by nominal interest rate
band is as follows:
(million euros)
12/31/2024
12/31/2023
Up to 2.5%
2,179
4,711
From 2.5% to 5%
5,665
7,929
From 5% to 7.5%
2,561
8,706
From 7.5% to 10%
1,727
4,216
Over 10%
—
3
Accruals/deferrals, MTM and derivatives
933
1,689
Total
13,065
27,254
The maturities of financial liabilities according to the expected nominal repayment amount, as defined by
contract, are the following:
maturing by 12/31 of the year:
(million euros)
2025
2026
2027
2028
2029
After
2029
Total
Bonds
2,000
1,053
742
1,375
499
440
6,109
Loans and other financial liabilities
1,040
81
381
13
267
2,162
3,944
Finance lease liabilities
194
119
111
98
118
198
838
Total
3,234
1,253
1,234
1,486
884
2,800
10,891
Current financial liabilities
1,569
—
—
—
—
—
1,569
Total
4,803
1,253
1,234
1,486
884
2,800
12,460
The main components of financial liabilities are commented below.
Bonds are broken down as follows:
(million euros)
12/31/2024
12/31/2023
Non-current portion
4,123
10,118
Current portion
2,127
2,668
Total carrying amount
6,250
12,786
Fair value adjustment and measurements at amortized cost
(141)
(287)
Total nominal repayment amount
6,109
12,499
The nominal repayment amount of bonds totaled 6,109 million euros, down 6,390 million euros compared to
December 31, 2023 (12,499 million euros) as a result of the repayments during 2024 and the sale of NetCo.
The change in bonds during 2024 was as follows:
Separate financial statements of
TIM S.p.A.
Note 15
Financial liabilities (non-current and current)
478
Repayments
(millions in original currency)
Currency
Amount
Repayment date
Telecom Italia S.p.A. 450 million euros 3.625%
Euro
450
1/19/2024
Telecom Italia S.p.A. 950 million euros 4.000%
Euro
950
4/11/2024
Telecom Italia S.p.A. 1,500 million USD 5.303%
USD
1,500
5/30/2024
In April 2024, TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A made an Offer to Exchange
Existing EUR and USD denominated Notes for New Notes to Bondholders in preparation for the Netco
transaction. Exchange operations concluded in May 2024.
The new bonds have substantially the same terms as the corresponding series of original bonds, including in
terms of their maturity, interest rate, interest payment dates and restrictive covenants, with the exception of
the clause for the exchange of new bonds to Optics BidCo S.p.A. ("Optics") on the date of the completion of
the NetCo transaction.
The table below summarizes the notes still with TIM S.p.A. and those subsequently transferred to Optics on
July 1, 2024:
Currency
Nominal value of
original notes
Coupon
Maturity date
TIM S.p.A. original
notes (nominal value)
New Notes
transferred to Optics
(nominal value)
Bonds issued by TIM S.p.A.
Euro
750,000,000
2.875%
1/28/26
375,000,000
375,000,000
Euro
1,000,000,000
3.625%
5/25/26
677,997,000
322,003,000
Euro
1,250,000,000
2.375%
10/12/27
742,285,000
507,715,000
Euro
1,250,000,000
6.875%
2/15/28
625,000,000
625,000,000
Euro
1,500,000,000
7.875%
7/31/28
750,000,000
750,000,000
Euro
1,000,000,000
1.625%
1/18/29
499,180,000
500,820,000
Euro
670,000,000
5.250%
3/17/55
440,000,000
230,000,000
Separate financial statements of
TIM S.p.A.
Note 15
Financial liabilities (non-current and current)
479
The following table lists the bonds issued by TIM S.p.A., expressed at the nominal repayment amount, net of
bond buy-backs, and also at market value:
Currency
Total
(millions)
Nominal
repayment
amount
Coupon
Issue date
Maturity
date
Issue price
(%)
Market
price at
December
31, 2024
Market
value at
December
31, 2024
Bonds issued by TIM S.p.A.
Euro
1,000
1,000
2.750%
15/4/19
15/4/25
99.320
99.653
996
Euro
1,000
1,000
3.000%
30/9/16
30/9/25
99.806
99.676
997
Euro
375
375
2.875%
28/6/18
1/28/26
100
100.285
376
Euro
678
678
3.625%
25/5/16
5/25/26
100
101.275
687
Euro
742
742
2.375%
12/10/17
10/12/27
99.185
99.332
737
Euro
625
625
6.875%
27/1/23
2/15/28
(*) 100.240
109.394
684
Euro
750
750
7.875%
20/7/23
7/31/28
(*) 100.998
113.346
850
Euro
499
499
1.625%
1/18/21
1/18/29
99.074
94.100
470
Euro
440
440
5.250%
17/3/05
3/17/55
99.667
101.298
446
Total
6,109
6,243
The regulations and/or Offering Circulars relating to the bonds described above are available on the corporate
website at the address: gruppotim.it.
Non-current amounts due to banks amounted to 580 million euros (3,634 million euros as of December 31,
2023), in particular, the early repayment on July 10, 2024 of the syndicated and SACE-guaranteed 2 billion
euros line subscribed by TIM S.p.A. on July 6, 2022. Short-term payables to banks totaled 813 million euros (794
million euros at December 31, 2023) and refer to the current portion of non-current amounts due to banks.
Non-current payables to other lenders amounted to 33 million euros (10 million euros as of December 31,
2023), while current payables to other lenders amounted to 242 million euros (224 million euros as of
December 31, 2023) and included 43 million euros of the current portion of non-current payables to other
lenders.
Non-current payables to subsidiaries amounted to 1,968 million euros (3,864 million euros at December 31,
2023) and consisted of loans obtained from Telecom Italia Capital S.A. (1,199 million euros) and from Telecom
Italia Finance S.A. (769 million euros), following the issues of bonds placed by the financial companies of the
Group on the United States and Luxembourg markets; specifically, the reduction compared to December 31,
2023 is due to the closing of intercompany loans with Luxembourg companies totaling 1.9 billion euros as part
of the Exchange transaction with Optics.
Current payables to subsidiaries amounted to 1,588 million euros and decreased by 257 million euros
compared to December 31, 2023 (1,845 million euros). They include:
■
the current portion of medium/long-term loans to Telecom Italia Capital S.A. (217 million euros) and
Telecom Italia Finance S.A. (23 million euros);
■
short-term loans to Telecom Italia Capital S.A. (200 million euros) and Telecom Italia Finance S.A. (872
million euros);
■
current accounts as part of the treasury services regulated at market rates for a total of 276 million euros,
particularly with TIM Retail S.r.l. (66 million euros), Telecom Italia Sparkle S.p.A. (62 million euros), Telecom
Italia Ventures (61 million euros), Telecontact Center S.p.A. (36 million euros), Telsy S.p.A. (17 million euros),
Telecom Italia Trust Technology (15 million euros), TIM Broker S.r.l. (12 million euros), Olivetti S.p.A. (7
million euros).
Non-current financial liabilities for lease contracts amounted to 644 million euros (2,710 million euros as of
December 31, 2023). Current financial liabilities for lease contracts amounted to 231 million euros (467 million
euros at December 31, 2023) and referred for 205 million euros to the current portion of non-current financial
liabilities for lease contracts.
With reference to the financial lease liabilities net of Discontinued Operations recognized in 2024 and 2023, the
following is noted:
(million euros)
2024
2023
Principal reimbursements
101
92
Cash out interest portion
55
42
Total
156
134
Hedging derivatives relating to hedged items classified as non-current financial liabilities amounted to 170
million euros (398 million euros at December 31, 2023). Hedging derivatives relating to hedged items classified
as current financial liabilities amounted to 7 million euros (32 million euros at December 31, 2023).
Non-current non-hedging derivatives amounted to 490 million euros (741 million euros at December 31,
2023). Current non-hedging derivatives amounted to 47 million euros (79 million euros at December 31, 2023).
These line items include the measurement in the liabilities of transactions which TIM S.p.A. carries out with
Separate financial statements of
TIM S.p.A.
Note 15
Financial liabilities (non-current and current)
480
banking counterparties to service the companies of the Group in its exclusive role as the centralized treasury
function (cash pooling), and are offset in full by the corresponding items classified as financial assets.
Further details are provided in Note 18 "Derivatives".
Covenants, negative pledges and other contract clauses in
effect at December 31, 2024
Bonds issued by TIM S.p.A. do not contain financial covenants (e.g. ratios such as Debt/EBITDA, EBITDA/
Interest, etc.) or clauses that result in the automatic early redemption of the bonds in relation to events other
than the insolvency of the TIM Group; Furthermore, the bond issues and payment of interest are not backed by
specific guarantees, nor are there any commitments to issue future guarantees.
Since these are mainly transactions placed with institutional investors on the main global capital markets
(Euromarket and USA), the terms governing the loans are in line with the market practice for similar
transactions carried out on the same markets.
The documentation concerning the loans taken out by TIM contain the usual other types of covenants,
including the commitment not to pledge the Company’s assets as collateral for loans (negative pledge) and
the commitment not to change the business purpose or sell the assets of the Company unless specific
conditions exist (e.g. the sale takes place at fair market value). Covenants with basically the same content can
be found in the export credit loan agreement.
In the loan agreements, TIM is required to provide notification of change of control. Events constituting a
change of control and the applicable consequences – including, at the discretion of the investors, the
establishment of guarantees or the early repayment of the amount paid in cash and the cancellation of the
commitment in the absence of agreements to the contrary – are specifically identified in each agreement.
In addition, the outstanding loans generally contain a commitment by TIM, any breach of which constitutes an
Event of Default, not to implement mergers, demergers or transfers of business, involving entities outside the
Group, except where certain conditions exist. Such an Event of Default may entail, upon request of the Lender,
the
early repayment of the drawn amounts and/or the annulment of the undrawn commitment.
On May 19, 2021 – specifically with regard to the loans taken out by TIM with the European Investment Bank
("EIB") – TIM took out a loan of 230 million euros to support national digitalization projects (for which early
repayment was made in full on November 15, 2024) and extended the loan taken out in 2019 (initial for 350
million euros) by an additional 120 million euros.
In addition, on May 5, 2023, TIM took out a new loan with the EIB for 360 million euros, partially guaranteed by
SACE.
Therefore, at December 31, 2024 the nominal total of outstanding loans with the EIB was 830 million euros.
Loans taken out with the EIB contain the following covenants and commitments, among others:
■
if the Company is subject to a merger, demerger or transfer of a business unit outside the TIM Group, or
disposes of, divests or transfers assets or business units (with the exception of certain disposals expressly
permitted), it must immediately notify the EIB, which will have the right to request the provision of
guarantees or the amendment of the loan agreement, or the early repayment of the loan (if a merger and
demerger transaction outside the TIM Group jeopardizes the execution or operation of the Project or is
detrimental to the EIB in its capacity as creditor);
■
TIM has undertaken to ensure that, for the entire duration of the loan, the total financial debt of the
companies belonging to the TIM Group other than TIM, and except where such debt is fully and irrevocably
guaranteed by TIM, this will be less than 35% (thirty-five per cent) of the total financial debt of the TIM
Group;
■
"Clause for inclusion", where, if TIM undertakes to maintain financial parameters in other loan agreements
(and also certain more stringent clauses, such as cross defaults and commitments to limit the sale of
assets) that are not present or are more stringent than those granted to the EIB, the latter will have the
right to request, if it considers in its reasonable opinion that such changes may have negative
consequences on TIM's financial capacity, the provision of guarantees or the amendment of the loan
agreement to provide for an equivalent provision in favor of the EIB.
Finally, as at December 31, 2024, no covenant, negative pledge or other clause relating to the aforementioned
debt position had in any way been breached or violated. nor are any difficulties in complying with the
covenants expected in the near future.
Revolving Credit Facility
The following table shows committed credit lines(*) available at December 31, 2024:
Separate financial statements of
TIM S.p.A.
Note 15
Financial liabilities (non-current and current)
481
(billions of euros)
12/31/2024
12/31/2023
Agreed
Drawn down
Agreed
Drawn down
Sustainability-linked RCF – May 2026
4.0
—
4.0
—
Total
4.0
—
4.0
—
(*) In accordance with the contract signed, the Banks have committed to make the funds available on demand (with at least 3 days’ notice). As this
is a “Committed” line, the banks have no mechanisms in place not to honor the request for funds made by the Company, without prejudice to the
market standard early mandatory cancellation clauses (Natural contract expiry, Change in control, Borrower illegality, Events of default each as
defined in the contract).
TIM's rating at December 31, 2024
At December 31, 2024, the three rating agencies – Standard & Poor’s, Moody’s and Fitch Ratings – rated TIM as
follows:
Rating
Outlook
STANDARD & POOR’S
BB
stable
MOODY'S
Ba3
positive
FITCH RATINGS
BB
stable
Separate financial statements of
TIM S.p.A.
Note 15
Financial liabilities (non-current and current)
482
NOTE 16
NET FINANCIAL DEBT
The table below shows the breakdown of net financial debt of the TIM Group at December 31, 2024 and
December 31, 2023, determined in accordance with the provisions of the “Guidelines on disclosure requirements
under the Prospectus Regulation” issued by the ESMA (European Securities & Markets Authority) on March 4,
2021 (ESMA32-382-1138) and incorporated by Consob with its Note of Attention no. 5/21 dated April 29, 2021.
This table also shows the reconciliation of the net financial debt determined according to the aforementioned
criteria indicated by the ESMA and net financial debt calculated according to the criteria of TIM S.p.A..
(million euros)
12/31/2024
12/31/2023
Liquid assets with banks, financial institutions and post offices
(a)
(732)
(560)
Other cash and cash equivalents
(b)
(88)
(38)
Securities other than investments
(c)
—
—
Liquidity
(d=a+b+c)
(820)
(598)
Current financial debt (including debt instruments, but excluding
the current portion of non-current financial debt)
(e)
1,574
1,830
Current portion of non-current financial debt
(f)
3,435
4,481
Current financial debt
(g=e+f)
5,009
6,311
Net current financial debt
(h=g-d)
4,189
5,713
Non-current financial debt (excluding current portion and debt
instruments)
(i)
3,350
10,560
Debt instruments
(j)
4,123
9,445
Trade payables and other non-current debt
(k)
1
1
Non-current financial debt
(L=I+J+K)
7,474
20,006
Total net financial debt as per ESMA guidelines 32-382-1138
(m=h+l)
11,663
25,719
Trade payables and other non-current debt (**)
(1)
(1)
Non-current financial receivables arising from lease contracts
(14)
(6)
Current financial receivables arising from lease contracts
(26)
(68)
Financial receivables and other current financial assets
(399)
(893)
Other financial receivables and other non-current financial assets
(1,043)
(3,087)
Subtotal
(n)
(1,483)
(4,055)
Net financial debt carrying amount (*)
(p=m+n)
10,180
21,664
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
(q)
(265)
(515)
Adjusted Net Financial Debt
(r=p+q)
9,915
21,149
(*) For the impact of Related-Party Transactions on Net Financial Debt, reference should be made to the table included in the Note "Related-party
transactions".
Separate financial statements of
TIM S.p.A.
Note 16
Net financial debt
483
The following additional disclosures are provided in accordance with IAS 7:
Additional cash flow information required by IAS 7
Cash movements
Non-cash movements
(million euros)
12/31/2023
Receipts
and/or
Issues
Payments
and/or
reimburseme
nts
Exchange
difference
s
Fair value
changes
Other
changes
and
reclassifica
tions
12/31/2024
Financial payables (medium/
long-term):
Bonds
12,452
(2,787)
30
(32)
(3,413)
6,250
Amounts due to banks
4,428
1,800
(4,825)
(10)
1,393
Other financial payables
4,149
200
(232)
24
(1,858)
2,283
(a)
21,029
2,000
(7,844)
54
(32)
(5,281)
9,926
of which short-term
4,076
3,223
Non-current financial liabilities
for lease contracts
3,143
—
(101)
(2,193)
849
(b)
3,143
—
(101)
—
—
(2,193)
849
of which short-term
433
205
Other medium/long-term
financial liabilities:
Hedging derivatives relating to
hedged items classified as non-
current assets/liabilities of a
financial nature
430
(15)
(229)
(9)
177
Non-hedging derivative liabilities
820
(25)
(227)
(31)
537
Other financial liabilities
2
—
2
(c)
1,252
—
—
(40)
(456)
(40)
716
of which short-term
111
54
Short-term financial liabilities:
Other financial payables
1,830
(256)
1,574
(d)
1,830
—
—
—
—
(256)
1,574
Financial liabilities directly
associated with Discontinued
operations/Non-current assets
held for sale
—
—
(151)
—
—
151
—
(e)
—
—
(151)
—
—
151
—
Total financial liabilities (Gross
financial debt)
(f=a+b+c+d+e)
27,254
2,000
(8,096)
14
(488)
—
13,065
Hedging derivative receivables
relating to hedged items
classified as current and non-
current assets/liabilities of a
financial nature
(g)
139
—
—
(56)
—
(7)
76
Non-hedging derivative
receivables
(h)
799
(25)
(238)
(29)
507
Total
(i=f-g-h)
26,316
2,000
(8,096)
95
(250)
36
12,482
The value of the paid and collected interest expense for Continuing Operations reported in the Statements of
Cash Flows takes into account the movements relating to transactions in CCIRS derivatives to hedge
underlying assets in both the assets component (collections) and the liabilities component (payments) without
netting the positions.
(million euros)
2024
2023
Interest expense paid
(1,597)
(1,674)
Interest income received
645
749
Net total
(952)
(925)
To consider the components of CCIRS derivatives as a single transaction, a representation is given with interest
flows in and out shown net. This approach gives the following results:
(million euros)
2024
2023
Interest expense paid
(1,508)
(1,516)
Interest income received
556
591
Net total
(952)
(925)
Separate financial statements of
TIM S.p.A.
Note 16
Net financial debt
484
NOTE 17
FINANCIAL RISK MANAGEMENT
Financial risk management objectives and policies of TIM S.p.A.
As reported in the Note "Financial Risk Management" of the TIM Group consolidated financial statements, TIM
S.p.A. adheres to the Guidelines on "Management and control of financial risk" established for the Group.
The risk management policies of TIM S.p.A. observe the policies for the diversification of risks identified for the
Group.
An optimum fixed-rate and variable-rate debt composition is defined for the entire Group and is not
established for the individual companies.
As for the exchange rate risk on financial payables contracted by TIM S.p.A. denominated in currencies other
than euro, such risk is hedged in full.
Derivative financial instruments are designated as fair value hedges for managing exchange rate and interest
rate risk on instruments denominated in currencies other than euro and for managing interest rate risk on
fixed-rate loans in euros. Derivative financial instruments are designated as cash flow hedges when the
objective is to pre-set the exchange rate of future transactions and the interest rate.
All derivative financial instruments are entered into with leading banking and financial counterparts whose
credit ratings are constantly monitored to reduce the credit risk.
TIM S.p.A. has current account transactions with subsidiaries, as part of its treasury services which are
conducted at market rates, and multi-year loan agreements with them which are also at market rates.
Interest rate risk: sensitivity analysis
The change in interest rates on the variable component of payables and liquidity may lead to higher or lower
finance income and expenses, while the changes in the level of the expected interest rate affect the fair value
measurement of TIM S.p.A. derivatives. Specifically:
■
with regard to derivatives that convert the liabilities contracted by TIM S.p.A. to fixed rates (cash flow
hedging), in line with international accounting standards that regulate hedge accounting, the fair value
(mark-to-market) measurement of such instruments is set aside in a specific unavailable Equity reserve.
The combined change of the numerous market variables to which the mark-to-market calculation is
subject between the transaction inception date and the measurement date renders any assumption about
the trend of the variables of little significance. As the contract expiration date approaches, the accounting
effects described will gradually be absorbed until they cease to exist;
■
if, at December 31, 2024, the interest rates in the various markets in which TIM S.p.A. operates had been
100 basis points higher/lower compared to the actual rates, then higher/(lower) finance expenses, before
the income tax effect, would have been recognized in the income statement for 12 million euros (26 million
euros at December 31, 2023).
Refer to Note 2 "Accounting Policies" for the potential risk generated by the reform of benchmark interest
rates.
Allocation of the financial structure between fixed rate and
variable rate
As for the allocation of the financial structure between the fixed-rate component and the variable-rate
component, for both financial assets and liabilities, reference should be made to the following tables. In the
tables below we took into account the nominal repayment/investment amount (because that amount
expresses the effective interest rate exposure of the Group) and, as far as financial assets are concerned, the
intrinsic nature (financial characteristics and duration) of the transactions under consideration rather than just
the stated contractual terms alone. Bearing that in mind, a transaction whose characteristics (short or very
short time frame and frequent renewal) are such that the interest rate is periodically reset on the basis of
market parameters, even though the contract does not call for re-fixing the interest rate (such as in the case of
bank deposits, Euro Commercial Papers and receivables on sales of securities), has been considered in the
category of variable rate.
Total Financial liabilities (at the nominal repayment amount)
12/31/2024
12/31/2023
(million euros)
Fixed rate
Variable
rate
Total
Fixed rate
Variable
rate
Total
Bonds
6,109
—
6,109
12,177
—
12,177
Loans and other financial liabilities
3,529
1,253
4,782
7,695
4,204
11,899
Total non-current financial liabilities
(including the current portion of medium/
long-term financial liabilities)
9,638
1,253
10,891
19,872
4,204
24,076
Total current financial liabilities
226
1,343
1,569
258
1,562
1,820
Total
9,864
2,596
12,460
20,130
5,766
25,896
Separate financial statements of
TIM S.p.A.
Note 17
Financial risk management
485
Total Financial assets (at the nominal investment amount)
12/31/2024
12/31/2023
(million euros)
Fixed rate
Variable rate
Total
Fixed rate
Variable rate
Total
Cash and cash equivalents
—
819
819
—
598
598
Other receivables
1,311
535
1,846
1,927
2,568
4,495
Total
1,311
1,354
2,665
1,927
3,166
5,093
With regard to variable-rate financial instruments, the contracts provide for revisions of the related parameters
to take place within the subsequent 12 months.
Effective interest rate
As to the effective interest rate, for the categories where that parameter can be determined, such parameter
refers to the original transaction net of the effect of any derivative hedging instruments. The disclosure, which
is provided by class of financial asset and liability, has been determined, for purposes of calculating the
weighted average, using the carrying amount adjusted by accruals, prepayments, deferrals and fair value
adjustments: this is therefore the amortized cost, net of accruals and any changes in fair value, as a
consequence of hedge accounting.
Total Financial Liabilities
12/31/2024
12/31/2023
(million euros)
Adjusted carrying
amount
Effective interest
rate (%)
Adjusted carrying
amount
Effective interest
rate (%)
Bonds
6,104
4.15
12,147
4.50
Loans and other financial liabilities
6,027
4.37
13,419
5.24
Total
12,131
4.26
25,566
3.66
Total Financial assets
12/31/2024
12/31/2023
(million euros)
Adjusted carrying
amount
Effective interest
rate (%)
Adjusted carrying
amount
Effective interest
rate (%)
Cash and cash equivalents
819
2.30
598
1.34
Other receivables
1,471
4.07
4,039
5.09
Total
2,290
3.44
4,637
4.60
As for financial assets, the weighted average effective interest rate is not essentially influenced by the
existence of derivatives.
As for market risk management using derivatives, reference should be made to the Note "Derivatives".
Credit risk
Credit risk represents TIM’s exposure to possible losses arising from the failure of commercial or financial
counterparties to fulfill their obligations. To measure this risk over time for impairment of financial assets
(trade receivables due from customers included), the introduction of IFRS 9 required switching from the
incurred loss model pursuant to IAS 39 to the expected credit loss model.
Such risk stems principally from economic and financial factors, or from the possibility that a default situation
of a counterparty could arise, or from more strictly technical, commercial or administrative factors.
TIM’s maximum theoretical exposure to credit risk is represented by the carrying amount of the financial assets
and trade receivables recorded in the financial statements, excluding guarantees received, described in the
Note "Contingent liabilities, other information, commitments and guarantees".
Risk related to trade receivables is managed using customer scoring and analysis systems. For specific
categories of trade receivables, the Group also makes use of factoring, mainly on a "non-recourse" basis.
In referring to the details indicated in the Note "Trade and miscellaneous receivables and other current assets",
it should be pointed out that the provision for bad debts is raised on specific credit positions that present
peculiar risk elements. On credit positions that do not have such characteristics, provisions are raised by
customer segment according to the average uncollectibility estimated on the basis of statistical indicators.
Financial assets other than trade receivables are written down for impairment on the basis of a general model
which recognizes expected credit losses over the following 12 months, or over the residual life of the asset in
the event of a substantial worsening of its credit risk. The expected credit loss is calculated based on the
default probability and the percentage of credit that cannot be recovered in the event of a default (the loss
given default).
The model adopted to calculate the expected credit loss is based on the Bloomberg Credit Risk Model, a model
developed by Bloomberg which, starting from Merton's distance-to-default (“DD”) concept, estimates the
probability of default together with the recovery rate. At the same time, the loss given default is defined as the
non-recoverable component of the post-default financial asset.
Separate financial statements of
TIM S.p.A.
Note 17
Financial risk management
486
In particular, the DD - based on balance sheet data - is enriched with a series of additional information by
country (macroeconomic, risk), business sector and individual company, as well as accounting adjustments
aimed at ensuring uniformity of the model's outputs; finally, through a non-linear function of the DD, the
default probability is obtained.
In order to improve credit risk management and relieve pressure on working capital, with specific reference to
the offers for the Consumer and Small Business market involving the option of paying for products by
installments, starting 2021, the company TIMFin has been operating, the result of the corporate joint venture
between Santander Consumer Bank (SCB) and TIM.
Moreover, again for the credit risk relating to the asset components which contribute to the determination of
Net financial debt it should be noted that, as per Group policy, the management of the liquidity of TIM S.p.A. is
guided by conservative criteria and is principally based on money market management. As part of this
management, investments are made during the year with temporary excess cash resources, which are
expected to turn around within the subsequent 12-month period.
In order to limit the risk of non-fulfillment of the obligations undertaken by the counterparty, deposits were
made with banking and financial institutions with a rating no lower than investment grade and non-negative
outlook. Moreover, the terms of deposits are shorter than three months.
As concerns the credit risk relating to the current asset components and with particular reference to the trade
receivables, the risk is managed on two levels:
■
operational management along the entire process chain, starting from the checks during acquisition and
continuing to the internal management checks of still active customers and the subsequent service
interruption stages, contractual termination and assignment to specific institutions specialized in credit
collection;
■
management of specific securitization programs rather than of non-recurring disposals, most of which
non-recourse in nature.
Liquidity risk
TIM S.p.A. pursues the Group’s objective of achieving an adequate level of financial flexibility.
Current financial assets at December 31, 2024, together with unused committed bank lines, ensure complete
coverage of debt repayment obligations for the next 12 months.
As of December 31, 2024, the available liquidity margin for TIM S.p.A. was 4,820 million euros (4,598 million
euros at the end of 2023).
39% of gross financial debt at December 31, 2024 (nominal repayment amount) will become due in the next 12
months.
The following tables report the contractual cash flows, not discounted to present value, relating to gross
financial debt at nominal repayment amounts and the interest flows, determined using the terms and the
interest and exchange rates in place at December 31, 2024. The portions of principal and interest of the hedged
liabilities included both the disbursements and the receipts of the related hedging instruments.
Separate financial statements of
TIM S.p.A.
Note 17
Financial risk management
487
Financial liabilities – Maturities of contractually expected disbursements
maturing by 12/31 of the year:
(million euros)
2025
2026
2027
2028
2029
Over
2029
Total
Bonds
Principal
2,000 1,053
742
1,375
499
440
6,109
Interest portion
246
186
151
112
31
601
1,327
Loans and other financial liabilities
(*)
Principal
1,040
81
381
13
227
1,826
3,568
Interest portion
266
229
181
180
160
826
1,842
Finance lease liabilities
Principal
194
119
111
98
118
198
838
Interest portion
40
32
28
26
20
48
194
Non-current financial liabilities(*)
Principal
3,234 1,253
1,234
1,486
844
2,464
10,515
Interest portion
552
447
360
318
211
1,475
3,363
Current financial liabilities(**)
Principal
1,569
—
—
—
—
—
1,569
Interest portion
40
—
—
—
—
—
40
Total
Principal
4,803 1,253
1,234
1,486
844
2,464 12,084
Interest portion
592
447
360
318
211
1,475
3,403
(*) These include hedging instruments, but exclude centrally managed non-hedging derivatives.
(**) Excluding centrally managed non-hedging derivative instruments.
Derivatives on financial liabilities – Contractually expected interest flows
maturing by 12/31 of the year:
(million euros)
2025
2026
2027
2028
2029
Over
2029
Total
Disbursements
55
57
57
57
57
203
486
Receipts
(45)
(43)
(43)
(42)
(42)
(167)
(382)
Hedging derivatives – net
(receipts) disbursements
10
14
14
15
15
36
104
Disbursements
173
170
170
170
162
1,044
1,889
Receipts
(163)
(160)
(160)
(160)
(161)
(1,048)
(1,852)
Non-Hedging derivatives – net
(receipts) disbursements
10
10
10
10
1
(4)
37
Total net disbursements
(receipts)
20
24
24
25
16
32
141
In order to name the Parent as the sole counterparty of the banking system, all the derivatives of the Group,
except for those relating to one banking counterparty, have been centralized under TIM S.p.A.. In the TIM S.p.A.
financial statements, this centralization has resulted in the presence of two non-hedging derivatives for each
centralized transaction (one with the bank and the other for the same amount and opposite sign with the
company of the Group), while the hedging relationship remains with the subsidiary and the Group.
The flows relating to the non-hedging derivatives that were placed under centralized management have
therefore been excluded both from the analysis by maturity of contractually expected disbursements for
financial liabilities and from the analysis by maturity of contractually expected interest flows for derivatives,
because the positions are fully netted with one another and, consequently, are not significant for the analysis
of liquidity risk.
Market value of derivative instruments
In order to determine the fair value of derivatives, the TIM Group uses various valuation models. The mark-to-
market calculation is determined by discounting to present value the interest and notional future contractual
flows using market interest rates and exchange rates.
The notional amount of IRS does not represent the amount exchanged between the parties and therefore does
not constitute a measurement of credit risk exposure which, instead, is limited to the amount of the
differential between the interest rates paid/received. The market value of CCIRSs, instead, also depends on the
differential between the reference exchange rate at the date of signing the contract and the exchange rate at
the date of measurement, since CCIRSs imply the exchange of the reference interest and principal, in the
respective currencies of denomination.
The options are measured according to the Black & Scholes or Binomial models and involve the use of various
measurements factors, such as: time horizon of the life of the option, risk-free rate of return, current price,
volatility and any cash flows (e.g. dividends) of the underlying instrument, and exercise price. TIM S.p.A.
Separate financial statements of
TIM S.p.A.
Note 17
Financial risk management
488
NOTE 18
DERIVATIVES
Derivative financial instruments are used by TIM S.p.A. to hedge its exposure to foreign exchange rate and
interest rate risks and also to diversify the parameters of debt so that costs and volatility can be reduced to
within predetermined operational limits.
Derivative financial instruments at December 31, 2024 are principally used to manage debt positions. They
include interest rate swaps (IRS) to reduce interest rate exposure on fixed-rate and variable-rate bank loans
and bonds, as well as cross currency and interest rate swaps (CCIRS), and currency forwards to convert the
loans/receivables secured in different foreign currencies to the functional currency.
IRS transactions, at specified maturity dates, provide for the exchange of flows of interest with the
counterparties, calculated on the notional amount, at the agreed fixed or variable rates.
The same also applies to CCIRS transactions which, in addition to the settlement of periodic interest flows, may
provide for the exchange of principal, in the respective currencies of denomination, at maturity and possibly
spot.
In carrying out its role as the Treasury function of the Group and with the aim of centralizing all exposures with
banking counterparties in just one entity (i.e. TIM S.p.A. pooling), TIM has non-hedging derivative contracts
signed with banks and mirror intercompany derivative contracts with Telecom Italia Capital S.A. and Telecom
Italia Finance S.A., for a notional value of 2,681 million euros.The balance of asset and liability measurements
of these contracts is equal to zero.
Hedges: economic relationship between underlying instrument
and derivatives
The hedge relationships documented in hedge accounting at TIM S.p.A. belong to three categories: i) hedging
of the cash flows coming from the coupon flow of bond issues denominated in currencies other than euro, ii)
hedging of the cash flows coming from the flow of floating interest on intercompany loans denominated in
euro, iii) hedging of the cash flows coming from the flow of floating interest on intercompany loans
denominated in foreign currency.
In the first case, the hedged risk is represented by the variability in cash flows (and the repayment of the
nominal amount) generated by exchange rates; hedging comprises combinations of IRS and CCIRS that
synthetically transform fixed rate foreign currency income flows into fixed rate euro flows. In this case,
exchange rate fluctuations will usually produce contrary effects on the underlying asset and on the derivative,
as the asset leg of the latter faithfully reflects the underlying asset, while the liability leg is denominated in
euro and is therefore insensitive to the exchange rate.
In the second case, the hedged risk is the variability of the cash flow against the performance of Euro market
interest rates. The hedging is done with IRSs, which allow a variable flow of interest to be collected against the
payment of a fixed rate interest flow. The current value of the underlying asset and derivatives depends on the
structure of the Euro market interest rates. The fluctuations of rates generate an impact on the nominal
amount of the flow of floating rate interest of the loan (only partially corrected by the discounting effect); on
the derivative, there are changes in the discount factors of the flow of fixed interest expense and changes in
the nominal flow of floating interest income (only partially corrected by the discounting effect). The effects
induced on the derivative are of a single and contrary nature with respect to those on the underlying asset.
In the third case, the hedged risk is the variability of cash flows (including the nominal amount to be repaid)
induced by the exchange rate in addition to the market interest rates in foreign currency; the hedging consists
of IRS and CCIRS derivatives which turn the floating rate in foreign currency into a Euro fixed rate. In this case,
exchange rate fluctuations (in addition to fluctuations in the interest rates in foreign currency) will produce
physiologically opposite effects on the underlying asset and on the derivative, because the asset leg of the
latter faithfully reflects the underlying asset, while the liability leg is denominated in euros and is therefore
insensitive to the exchange rate (and to the interest rates in foreign currency). The impacts caused, on the
other hand, by the Euro interest rates on the liability leg of the derivative are restricted to just discounting.
Hedges: determination of the hedge ratio
The types of hedging implemented by the Group require the adoption of a hedge ratio equal to 1:1, as the types
of risk hedged (interest rate and exchange rate risks) are such as to generate economic effects in the
underlying instruments that can only be offset by the same notional quantities of derivative instruments.
Hedges: potential sources of ineffectiveness
The contractualization of derivatives to hedge financial risks takes place at arm's length and aims to
completely neutralize the effects produced by such instruments.
However, in practice, hedges (although financially perfect) may not guarantee an absolute accounting
effectiveness due to the many counterparty banks involved, to the peculiar nature of certain derivatives in
terms, for example, of fixing and/or indexing of variable parameters, and to the possible imperfect coincidence
between critical terms.
The first table indicates total financial derivatives of TIM S.p.A. at December 31, 2024 and 2023; in compliance
with standard IFRS 7, notional amounts are shown with reference to all the derivative instruments involved in
the hedges.
Separate financial statements of
TIM S.p.A.
Note 18
Derivatives
489
The following tables break down financial derivatives by type of risk for each kind of hedging, separating
financial assets and liabilities. For CCIRS, the notional amount refers to the contractual value in euros, for IRS in
a currency other than the euro, the value is indicated at the market exchange rate.
Type
Hedged risk
Notional
amount at
12/31/2024
Notional
amount at
12/31/2023
Mark to Market
Spot (*) (Clean
Price) at
12/31/2024
(million euros)
Mark to Market
Spot (*) (Clean
Price) at
12/31/2023
(million euros)
Interest rate swaps
Interest rate risk
—
—
Cross Currency and
Interest Rate Swaps
(CCIRS)
Interest rate risk and
currency exchange rate
risk
—
—
—
—
Total Fair Value Hedge Derivatives
—
—
—
—
Interest rate swaps
Interest rate risk
959
1,760
(143)
(259)
Cross Currency and
Interest Rate Swaps
(CCIRS)
Interest rate risk and
currency exchange rate
risk
599
2,344
(17)
(89)
Total Cash Flow Hedge Derivatives
1,558
4,104
(160)
(348)
Total Non-Hedge Accounting Derivatives
100
500
(27)
(16)
Total TIM derivatives
1,658
4,604
(187)
(364)
(*) Spot Mark-to-market above represents the market measurement of the derivative net of the accrued portion of the flow in progress.
Fair value hedges
(million euros)
Accounting item
Notional
value
Carrying
amount
Change in
fair value
for the
year
Interest rate swaps
Hedging derivatives relating to
hedged items classified as current
financial assets/liabilities - Current/
non-current assets
a)
—
—
—
Assets
—
Liabilities
—
Cross Currency and Interest Rate
Swaps (CCIRS)
Hedging derivatives relating to
hedged items classified as current
financial assets/liabilities - Current/
non-current assets
b)
—
—
—
Assets
—
Liabilities
—
Derivative instruments (spot value)
a)+b)
—
—
—
Accruals
Derivative instruments (gross value)
Underlying instruments (1)
Bonds - Current/non-current liabilities
of which fair value adjustment
Fair value adjustment and
measurements at amortized cost
c)
—
—
—
Ineffectiveness
a)+b)+c)
—
—
—
Fair value adjustment for hedging
settled in advance (2)
(23)
(1) Includes the amortized cost value of bonds currently hedged plus the fair value adjustment.
(2) Referred to bonds no longer hedged, which are therefore not presented in the table.
Separate financial statements of
TIM S.p.A.
Note 18
Derivatives
490
Cash flow hedges
(million euros)
Accounting item
Notional
value
Carrying
amount
Change in
fair value
Change in
cumulative
fair value
Interest rate swaps
Hedging derivatives relating to
hedged items classified as current
financial assets/liabilities -
Current/non-current assets
a)
959
(143)
116
Assets
—
Liabilities
(143)
116
Cross Currency and Interest
Rate Swaps (CCIRS)
Hedging derivatives relating to
hedged items classified as current
financial assets/liabilities -
Current/non-current assets
b)
599
(17)
72
Assets
45
(49)
Liabilities
(62)
121
Derivative instruments (spot
value)
a)+b)
1,558
(160)
188
Accruals
59
Derivative instruments (gross
value)
(101)
of which equity reserve gains
and losses
228
Determination of
ineffectiveness
Change in derivatives
c)
(198)
Underlying instruments (4)
d)
194
Ineffectiveness (5)
Positive fair value adjustment of
financial derivatives - non-
hedging
c)+d)
(5)
Equity reserve
Equity reserve balance
(214)
of which due to the fair value
of hedging settled in advance
9
Reclassification to P&L
Negative reversal of the reserve
for the fair value adjustment of
hedging derivatives (cash flow
hedges)
(1)
(4) Hypothetical derivatives used in measuring the effectiveness of cash flow hedges.
(5) The ineffectiveness, due to its nature and calculation, does not necessarily coincide with the difference in cumulative changes in the fair value of
derivatives and the underlying instrument; the effect due to the adoption of CVA/DVA is not considered.
The transactions hedged by cash flow hedges will generate cash flows and produce economic effects in the
income statement in the periods indicated in the following table:
Denomination
currency
Notional
amount in
denomination
currency
(millions)
Start of
period
End of
period
Rate applied
Interest
period
Hedging
of
notional
amount in
euro
(millions)
Hedging of
rate in euro
YEN
20,000
Jan-25
Oct-29
(a)JPY Libor 6m + 0.94625%
Semiannual
ly
174
6.940%
USD
500
Jan-25
Nov-33
3 month USD Libor +
0.756%(a)
Quarterly
425
5.978%
EUR
391
Jan-25
Sep-34 6-month Euribor + 0.8787%
Semiannual
ly
794
4.340%
EUR
394
Jan-25
Jul-36
6-month Euribor +
1.45969%
Semiannual
ly
791
5.883%
(a) Following the reform of the Interbank Offered Rate (IBOR), the floating rate parameters were replaced by the Tonar JPY rate (1/1/2022) and the
Sofr USD rate (30/6/2023), respectively, according to the requirements of the fallback clauses published by the ISDA.
For hedge accounting purposes, the Volatility Risk Reduction (VRR) Test was chosen to test the retrospective
and prospective effectiveness of all hedges.This test assesses the ratio between the portfolio risk (meaning the
derivative and the item hedged) and the risk of the hedged item taken individually. In essence, the portfolio risk
must be significantly lower than the risk of the hedged item.
Separate financial statements of
TIM S.p.A.
Note 18
Derivatives
491
NOTE 19
SUPPLEMENTARY DISCLOSURES ON FINANCIAL
INSTRUMENTS
Measurement at fair value
For the purposes of the comparative information between the carrying amounts and fair value of financial
instruments, required by IFRS 7, the majority of the non-current financial liabilities of TIM consist of bonds,
whose fair value is directly observable in the financial markets, as they are financial instruments that due to
their size and diffusion among investors, are commonly traded on the relevant markets (see the Note 15 "Non-
current and current financial liabilities"). For other types of financing, however, the following assumptions have
been made in determining fair value:
■
for variable-rate loans, the nominal repayment amount has been assumed; for fixed-rate loans;
■
for fixed-rate loans, the present value of future cash flows at the market interest rates of December 31,
2024 has been assumed.
Lastly, for the majority of financial assets, their carrying amount is a reasonable approximation of their fair
value, since these are short-term investments that are readily convertible into cash.
The fair value measurement of the financial instruments of TIM is classified according to the three levels set
out in IFRS 7. In particular, the fair value hierarchy introduces the following levels of input:
■
Level 1: quoted prices in active markets;
■
Level 2: prices calculated using observable market inputs;
■
Level 3: prices calculated using inputs that are not based on observable market data.
The following tables contain, for assets and liabilities at December 31, 2024 and December 31, 2023 and in
accordance with the categories established by IFRS 9, the supplementary disclosures on financial instruments
required by IFRS 7 and the schedules of gains and losses.
Key for IFRS 9 categories
Acronym
Financial assets measured at:
Amortized cost
Amortized Cost
AC
Fair Value Through Other Comprehensive Income
Fair Value Through Other Comprehensive
Income
FVTOCI
Fair Value Through Profit or Loss
Fair Value Through Profit or Loss
FVTPL
Financial liabilities measured at:
Amortized cost
Amortized Cost
AC
Fair Value Through Profit or Loss
Fair Value Through Profit or Loss
FVTPL
Hedge Derivatives
Hedge Derivatives
HD
Not applicable
Not applicable
N/A
Separate financial statements of
TIM S.p.A.
Note 19
Supplementary disclosures on financial
instruments
492
Carrying amount and fair value hierarchy for each category/class of financial asset/liability and comparison
with their fair value at 12/31/2024
Amounts recognized in financial
statements
Levels of hierarchy of
fair value
(million euros)
Categorie
s
IFRS 9
notes
Carrying
amount at
December
31, 2024
Amortized
cost
Fair value
through
other
comprehensi
ve
income
Fair Value
through
profit
or loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value
at
12/31/2024
ASSETS
Financial assets measured at
amortized cost
AC
3,913
3,913
—
—
—
—
—
—
3,913
Non-current assets
Receivables from
employees
8)
9
9
Other financial
receivables
8)
1,034
1,034
Miscellaneous
receivables from others
(non-current)
9)
6
6
Current assets
Receivables from
employees
8)
3
3
Other short-term
financial receivables
8)
396
396
Cash and cash
equivalents
8)
820
820
Trade receivables
12)
1,555
1,555
Miscellaneous
receivables from others
(current)
12)
66
66
Contract assets
12)
24
24
Financial assets measured at
fair value through other
comprehensive income
FVTOCI
44
—
44
—
—
32
12
—
44
Non-current assets
Other investments
7)
44
44
32
12
Securities other than
investments
8)
Current assets
Trade receivables
12)
—
Securities other than
investments
8)
—
—
—
Financial assets measured at
fair value through profit or
loss
FVTPL
507
—
—
507
—
507
—
—
507
Non-current assets
Non-hedging derivatives
8)
464
464
464
Current assets
Securities other than
investments
8)
Non-hedging derivatives
8)
43
43
43
Hedge Derivatives
HD
76
—
76
—
—
76
—
—
76
Non-current assets
Hedge Derivatives
8)
72
72
72
Current assets
Hedge Derivatives
8)
4
4
4
Financial receivables for
lease contracts
N/A
40
—
—
—
—
—
—
40
40
Non-current assets
8)
14
14
Current assets
8)
26
26
Total
4,580
3,913
120
507
—
1,230
24
40
4,580
The financial instruments belonging to hierarchy level 3 of fair value are represented by the following Other
investments recognized as Non-current assets, for which directly or indirectly observable prices on the market
are not available: Banca UBAE, Istituto Europeo di Oncologia, Istituto Enciclopedia Italiana G. Treccani and
other minor companies. These equity investments were measured on the basis of an analysis, deemed reliable,
of their significant assets and liabilities.
Separate financial statements of
TIM S.p.A.
Note 19
Supplementary disclosures on financial
instruments
493
In 2024, the fair value measurement of level 3 financial instruments resulted in a total impairment loss of 29
thousand euros, recorded through other comprehensive income.
The profit/(loss) resulting from the fair value adjustment of financial assets were recognized within the scope
of the Reserve for financial assets measured at fair value through other comprehensive income.
Amounts recognized in financial
statements
Levels of hierarchy
of fair value
(millions of euros)
IFRS 9
categorie
s
notes
Carrying
amount at
December
31, 2024
Amortized
cost
Fair value
through
other
comprehensi
ve income
Fair Value
through
profit
or loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value
at
12/31/2024
LIABILITIES
Financial liabilities measured
at amortized cost
AC/HD
15,031
15,031
—
—
—
—
—
—
15,275
Non-current liabilities
Non-current financial
payables and other
liabilities
15)
6,705
6,705
Current liabilities
Current financial
payables and other
liabilities
15)
4,771
4,771
Trade and miscellaneous
payables and other
current liabilities
23)
3,456
3,456
Contract liabilities
23)
99
99
Financial liabilities measured
at fair value through profit or
loss
FVTPL
537
—
—
537
—
537
—
—
537
Non-current liabilities
Non-hedging derivatives
15)
490
490
490
Current liabilities
Non-hedging derivatives
15)
47
47
47
Hedge Derivatives
HD
177
—
177
—
—
177
—
—
177
Non-current liabilities
Hedge Derivatives
15)
170
170
170
Current liabilities
Hedge Derivatives
15)
7
7
7
Liabilities for lease contracts
N/A
875
—
—
—
—
—
—
875
869
Non-current liabilities
15)
644
644
Current liabilities
15)
231
231
Total
16,620
15,031
177
537
— 1,428
—
875
16,858
Separate financial statements of
TIM S.p.A.
Note 19
Supplementary disclosures on financial
instruments
494
Carrying amount and fair value hierarchy for each category/class of financial asset/liability and comparison
with their fair value at 12/31/2023
Amounts recognized in financial
statements
Levels of hierarchy of
fair value
(million euros)
IFRS 9
categorie
s
notes
Carrying
amount in
financial
statement
s at
12/31/2023
Amortized
cost
Fair value
through
other
comprehensi
ve
income
Fair Value
through
profit
or loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value
at
12/31/2023
ASSETS
Financial assets measured at
amortized cost
AC
7,583
7,583
—
—
—
—
—
—
7,583
Non-current assets
Receivables from
employees
8)
29
29
Other financial
receivables
8)
3,058
3,058
Miscellaneous
receivables from others
(non-current)
9)
12
12
Current assets
Receivables from
employees
8)
22
22
Other short-term
financial receivables
8)
871
871
Cash and cash
equivalents
8)
598
598
Trade receivables
12)
2,907
2,907
Miscellaneous
receivables from others
(current)
12)
55
55
Contract assets
12)
31
31
Financial assets measured at
fair value through other
comprehensive income
FVTOCI
36.457
—
36.457
—
—
24
12
—
36.457
Non-current assets
Other investments
7)
36.457
36.457
—
24
12
Securities other than
investments
8)
Current assets
Trade receivables
12)
—
—
Securities other than
investments
8)
—
—
—
Financial assets measured at
fair value through profit or
loss
FVTPL
799
—
—
799
—
799
—
—
799
Non-current assets
Non-hedging derivatives
8)
726
726
726
Current assets
Securities other than
investments
8)
Non-hedging derivatives
8)
73
73
73
Hedge Derivatives
HD
139
—
139
—
—
139
—
139
Non-current assets
Hedge Derivatives
8)
73
73
—
73
Current assets
Hedge Derivatives
8)
66
66
—
66
Financial receivables for
lease contracts
N/A
74
—
—
—
—
—
—
74
74
Non-current assets
8)
6
6
Current assets
8)
68
68
Total
8,631.457
7,583
175.457
799
— 1,924
24
74 8,631.457
Separate financial statements of
TIM S.p.A.
Note 19
Supplementary disclosures on financial
instruments
495
Amounts recognized in financial statements
Levels of hierarchy
of fair value
(millions of euros)
IFRS 9
categorie
s
notes
Carrying
amount in
financial
statement
s at
12/31/2023
Amortized
cost
Fair value
through other
comprehensive
income
Fair value
through
profit or
loss
Level 1
Level 2
Level 3
Carrying
amount
under
IFRS 16
Fair Value
at
12/31/2023
LIABILITIES
Financial liabilities measured
at amortized cost
AC/HD
27,627
27,627
—
—
—
—
—
—
27,579
Non-current liabilities
Non-current financial
payables
14)
16,955
16,955
Current liabilities
Current financial
payables
14)
5,872
5,872
Trade and miscellaneous
payables and other
current liabilities
22)
4,699
4,699
Contract liabilities
22)
101
101
Financial liabilities measured
at fair value through profit or
loss
FVTPL
820
—
—
820
— 1,235
15
—
820
Non-current liabilities
Non-hedging derivatives
14)
741
741
726
15
Current liabilities
Non-hedging derivatives
14)
79
79
79
Hedge Derivatives
HD
430
—
430
—
— 430
—
—
430
Non-current liabilities
Hedge Derivatives
14)
398
398
398
Current liabilities
Hedge Derivatives
14)
32
32
32
Liabilities for lease contracts
N/A
3,177
—
—
—
—
—
—
3,177
3,188
Non-current liabilities
14)
2,710
2,710
Current liabilities
14)
467
467
Total
32,054
27,627
430
820
— 2,900
30
3,177
32,017
Gains and losses by IFRS 9 categories - Year 2024
(million euros)
IFRS 9 categories
Net gains/(losses)
2024
of which
interest
Assets measured at amortized cost
AC
16
174
Assets and liabilities measured at fair value through profit or
loss
FVTPL
(94)
—
Assets and liabilities measured at fair value through other
comprehensive income
FVTOCI
2
—
Financial Liabilities at Amortized Cost
AC
(932)
(1,070)
Total
(1,008)
(896)
Gains and losses by IFRS 9 categories - Year 2023
(million euros)
IFRS 9 categories
Net gains/(losses)
2023
of which
interest
Assets measured at amortized cost
AC
21
191
Assets and liabilities measured at fair value through profit or
loss
FVTPL
(13)
—
Assets and liabilities measured at fair value through other
comprehensive income
FVTOCI
2
—
Financial Liabilities at Amortized Cost
AC
(1,152)
(1,070)
Total
(1,142)
(879)
Separate financial statements of
TIM S.p.A.
Note 19
Supplementary disclosures on financial
instruments
496
NOTE 20
EMPLOYEE BENEFITS
The item decreased by 310 million euros compared to December 31, 2023. The breakdown and movements are
as follows:
(million euros)
12/31/2022
Increase/
Discounting
Decrease
12/31/2023
Provision for employee severance indemnities
525
25
(78)
472
Provision for termination benefit incentives and
corporate restructuring
206
8
(213)
1
Total
731
33
(291)
473
of which:
Non-current portion
631
472
current portion (*)
100
1
(*) The current portion refers to the Provision for termination benefit incentives and corporate restructuring.
(million euros)
12/31/2023
Discontinued
operations
Increase/
Discounting
Decrease
12/31/2024
Provision for employee severance indemnities
472
(304)
3
(8)
163
Provision for termination benefit incentives and
corporate restructuring
1
—
(1)
—
Total
473
(304)
3
(9)
163
of which:
Non-current portion
472
163
current portion (*)
1
—
(*) The current portion refers to the Provision for termination benefit incentives and corporate restructuring.
The Provision for employee severance indemnities is down 309 million euros on December 31, 2023, mainly as
a result of the NetCo transaction. The decreases of 8 million euros relating to indemnities paid during the year
to employees who terminated employment or for advances.
"Increases/ Present value" of 3 million euros breaks down as follows:
(million euros)
2024
2023
(Positive)/negative effect of curtailment
—
—
Finance expenses
5
17
Net actuarial (gains) losses recognized during the year
(2)
8
Total expenses (income)
3
25
Effective return on plan assets
there are no assets servicing the
plan
The net actuarial losses recognized at December 31, 2024 amounted to 2 million euros (net actuarial gains of 8
million euros in 2023), and are essentially connected with both staff turnover and changes to the technical-
economic parameters: the inflation rate remained unchanged at 2.00%, while the discount rate increased from
3.08% used as of December 31, 2023 to 3.18% as of December 31, 2024.
According to Italian law, the amount to which each employee is entitled depends on the period of service and
must be paid when the employee leaves the company. The amount of severance indemnity due upon
termination of employment is calculated on the basis of the period of employment and the taxable
compensation of each employee. This liability is adjusted annually based on the official cost-of-living index and
legally-set interest. The liability is not associated with any vesting condition or period or any funding obligation;
accordingly, there are no assets servicing the provision. The liability is recognized net of the partial
prepayments of the provision and payments of the amounts obtained by employees for the reasons permitted
by the applicable regulations.
In accordance with IAS 19, this provision has been recognized as a “Defined benefit plan”, for the amounts due
up to December 31, 2024.
Under the regulations introduced by Italian Legislative Decree 252/2005 and Law 296/2006 (the State Budget
Law 2007), the severance indemnities accruing from 2008 are assigned to either the INPS Treasury Fund or to
supplementary pension funds and take the form of a "Defined contribution plan". However, revaluations of the
provision for the employee severance indemnities at December 31, 2006, made on the basis of the official cost-
of-living index and legally-prescribed interest, are retained in the provision for employee severance
indemnities.
Separate financial statements of
TIM S.p.A.
Note 20
Employee benefits
497
In application of IAS 19, the employee severance indemnities have been calculated using the "Projected Unit
Credit Method" according to which:
■
the future possible benefits which could be paid to each employee registered in the program in the event
of retirement, death, disability, resignation etc. have been projected on the basis of a series of financial
assumptions (cost-of-living increases, interest rate, increase in compensation etc.);
■
the average present value of future benefits has been calculated, at the measurement date, on the basis
of the annual interest rate adopted and of the probability that each benefit actually has to be paid;
■
the liability has been calculated as the average present value of future benefits that will be generated by
the existing provision at the measurement date, without considering any future accruals.
The following assumptions have been made:
FINANCIAL ASSUMPTIONS
Executives
Non-executives
Inflation rate
2.00% per annum
2.00% per annum
Discount rate
3.18% per annum
3.18% per annum
Employee severance indemnities annual increase rate
3.0% per annum
3.0% per annum
DEMOGRAPHIC ASSUMPTIONS
Executives
Non-executives
Probability of death
ISTAT 2022
ISTAT 2022
Probability of disability
INPS tables divided by age
and sex
INPS tables divided by age
and sex
Probability of resignation:
up to 40 years of age
2.00%
1.00%
From 41 to 50 years of age
2.00%
0.50%
From 51 to 59 years of age
1.00%
0.50%
From 60 to 64 years of age
None
0.50%
Aged 65 and over
None
None
Probability of retirement
100% on achievement of the AGO requirements aligned
with D.L. 4/2019
Probability of receiving at the beginning of the year an advance
from the provision for severance indemnities accrued equal to 70%
1.5%
per annum
1.5%
per annum
The application of the above assumptions resulted in a liability for employee severance indemnities of 163
million euros at December 31, 2024 (472 million euros at December 31, 2023).
Reported below is a sensitivity analysis for each significant actuarial assumption adopted to calculate the
liability as at year end; showing how the liability would have been affected by changes in the relevant actuarial
assumption that were reasonably possible at that date, stated in amounts. The weighted average duration of
the obligation is 8.9 years.
CHANGES IN ASSUMPTIONS
Amounts
(million euros)
Turnover rate:
+0.5 p.p.
-
- 0.5 p.p.
-
Annual inflation rate:
+0.5 p.p.
5
- 0.5 p.p.
(5)
Annual discount rate:
+0.5 p.p.
(6)
- 0.5 p.p.
7
The Provision for termination benefit incentives and corporate restructuring was fully utilized in 2024 as a
result of staff departures.
Separate financial statements of
TIM S.p.A.
Note 20
Employee benefits
498
NOTE 21
PROVISIONS
The item decreased by 178 million euros compared to December 31, 2023. The breakdown and movements are
as follows:
(million euros)
12/31/2023
Discontinued
operations
Increase
Taken to
income
Used directly
Reclassification
s/other changes
12/31/2024
Provision for
taxation and
tax risks
1
—
—
—
—
(1)
—
Provision for
restoration
costs
158
(95)
3
—
(2)
7
71
Provision for
legal disputes
328
—
55
—
(44)
6
345
Provision for
commercial
risks
249
—
19
—
(123)
7
152
Provision for
risks and
charges on
investments
and corporate-
related
transactions
36
—
—
—
—
(10)
26
Other provisions
7
—
—
—
—
—
7
Total
779
(95)
77
—
(169)
9
601
of which:
Non-current
portion
254
199
current portion
525
402
The non-current portion of provisions for risks and charges relates to the provision for restoration costs and
part of the provision for legal disputes and the provision for commercial risks. More specifically, in accordance
with accounting standards, the total amount of the provision for restoration costs is calculated by re-
measuring the amounts for which a probable outlay is envisaged, based on the estimated inflation rates for
the individual due dates, and subsequently discounted to the reporting date based on the average cost of debt,
taking into account cash outflow forecasts.
The provision for taxation and tax risks, which was 600 thousand euros as of December 31, 2023, decreased
and amounted to 480 thousand euros as of December 31, 2024.
The provision for restoration costs refers to the provision for the costs expected to be incurred for the
restoration of leased properties and sites used in the mobile sector. Decreased by 87 million compared to
December 31, 2023 mainly as a result of the NetCo transaction.
The provision for legal disputes increased by 17 million euros compared to December 31, 2023, following
additions partially offset by utilizations during the year. the provision includes amounts set aside for disputes
with employees (56 million euros) and third-parties (289 million euros).
The provision for commercial risks decreased by 97 million euros compared to December 31, 2023, mainly in
connection with the utilization of 112 million euros of the provision for contractual risks for onerous contracts
(IAS 37). This provision amounts to 70 million euros as of December 31, 2024, enabling the negative margins to
be nullified over the entire term of the remaining contract for a connectivity agreement. It should be noted
that, during 2024, the contract was entered into with DAZN and the related risk provision (110 million euros)
was fully used.
The provision for investment and corporate transaction risks decreased by 10 million compared to December
31, 2023, due to the reclassification to the provision for impairment of the investment in the subsidiary Olivetti
SpA Società Benefit.
Other provisions were unchanged from December 31, 2023.
Separate financial statements of
TIM S.p.A.
Note 21
Provisions
499
NOTE 22
MISCELLANEOUS PAYABLES AND OTHER NON-
CURRENT LIABILITIES
Miscellaneous payables and other non-current liabilities consisted of the following at December 31, 2024:
(million euros)
12/31/2024
12/31/2023
Miscellaneous payables (non-current)
Payables to social security agencies
368
573
Payables due to subsidiaries
—
9
Other payables to third parties
2
1
(a)
370
583
Other non-current liabilities
Deferred revenues from customer contracts (Contract liabilities)
108
94
Other deferred revenue and income
207
129
Capital grants
14
242
(b)
329
465
Total
(a+b)
699
1,048
Miscellaneous payables (non-current)
This item decreased by 213 million euros compared to December 31, 2023, and includes:
■
Payables to social security agencies amounted to 368 million euros (573 million euros at December 31,
2023): related to the debt position in respect of the INPS for the application of Art. 4 of Law no. 92 of June
28, 2012 and former Art. 41, subsection 5bis of Italian Legislative Decree no. 148/2015, as per the
agreements signed by TIM S.p.A. with the trade unions (see the Note “Employee benefits expenses” for
more details). These payables were as follows:
(million euros)
12/31/2024
12/31/2023
Non-current payables
Due from 2 to 5 years after the end of the reporting period
354
517
Due beyond 5 years after the end of the reporting period
14
56
368
573
Current payables
224
280
Total
592
853
■
Payables due to subsidiaries, zero as of December 31, 2024 (9 million as of December 31, 2023): relates to
the payables due for the adoption of the consolidated tax return in Italy;
■
Other payables to third parties, amounting to 2 million euros (1 million euros as of December 31, 2023).
Other non-current liabilities
The item, amounting to 329 million euros, fell by 136 million euros compared to December 31, 2023 and
consisted of:
■
Deferred revenues from contracts with customers (contract liabilities) of 108 million euros (94 million
euros at December 31, 2023): the item is reversed to the income statement according to the duration of
the contractual obligations between the parties, averaging 24 months; therefore, the balance as at
December 31, 2024 will be reversed to the income statement generally by 2026. The item mainly includes:
•
deferred revenues for subscription charges and rent and maintenance payments of 79 million euros;
•
deferred revenues for outsourcing charges for 26 million euros.
■
Other deferred revenues and income, amounting to 207 million euros (129 million euros as of December
31, 2023), refer to the non-current portion of deferred revenues related to the MSA with FiberCop S.p.A.,
while the balance as of December 31, 2023 included deferred revenues from contracts for the sale of
transmission capacity (operating lease assets), which were contributed as part of the NetCo transaction.
■
Capital grants of 14 million euros (242 million euros at December 31, 2023): the item represents the
component to be charged to the income statement on the basis of the useful life (estimated at around 18
years) of the assets to which the contributions themselves relate and is mainly related to the
implementation of the 5G Coverage Plan under the NRRP (13 million euros), while as of December 31, 2023
it was mainly related to the implementation of the infrastructure on the projects called Ultra Broadband-
BUL and Broadband-BL, which were contributed as part of the NetCo transaction.
Separate financial statements of
TIM S.p.A.
Note 22
Miscellaneous payables and other non-current
liabilities
500
NOTE 23
TRADE AND MISCELLANEOUS PAYABLES AND
OTHER CURRENT LIABILITIES
Trade and miscellaneous payables and other current liabilities at December 31, 2024 consisted of the
following:
(million euros)
12/31/2024
of which
Financial
Instruments
12/31/2023
of which
Financial
Instruments
Trade payables
Payables due to suppliers
2,759
2,759
3,620
3,620
Payables to other telecommunications operators
207
207
281
281
Payables due to subsidiaries
381
381
713
713
Payables to associates and joint ventures
6
6
15
15
Payables to other subsidiaries
14
14
26
26
(a)
3,367
3,367
4,655
4,655
Miscellaneous payables
Payables due to subsidiaries
55
—
92
—
Payables to associates and joint ventures
—
—
—
—
Payables to other related parties
9
—
20
—
Tax payables
34
—
71
—
Payables to social security agencies
266
—
360
—
Payables for employee compensation
113
—
232
—
Other
195
89
993
44
Employee benefits (except for employee severance
indemnities) for the current portion expected to be
settled within 1 year
—
—
1
—
Provisions for employee benefits (except for employee
severance indemnities) for the current portion
expected to be settled within 12 months
402
—
525
—
(b)
1,074
89
2,294
44
Other current liabilities
Liabilities from customer contracts (Contract liabilities)
756
99
780
101
Other deferred revenue and income
84
—
21
—
Other
—
—
35
—
(c)
840
99
836
101
Total
(a+b+c)
5,281
3,555
7,785
4,800
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
Trade payables
This item decreased by 1,288 million euros compared to December 31, 2023, mainly as a result of the NetCo
transaction and the change in bills payable.
In particular, we report:
■
trade payables to subsidiaries, amounting to 381 million euros (713 as of December 31, 2023): mainly refer
to debt positions owed to Noovle S.p.A. Società Benefit (210 million euros), Telecom Italia Sparkle S.p.A. (50
million euros) for telecommunications services, Telsy S.p.A. (42 million euros), TIM Retail S.r.l. (29 million
euros), Olivetti S.p.A. Società Benefit (18 million euros), Telecom Italia Trust Technologies S.p.A. (12 million
euros) and Telecontact Center S.p.A. (12 million euros) for supply relationships. The reduction compared to
last year is mainly attributable to the exit of FiberCop S.p.A. and Telenergia S.r.l. (a total of 420 million
euros as of December 31, 2023) from the scope of consolidation;
■
trade payables to associates, amounting to 6 million euros (15 million euros as of December 31, 2023): are
related to debt positions mainly with TIMFin S.p.A. (3 million euros);
■
trade payables to other related parties, amounting to 14 million euros (26 million euros as of December 31,
2023): refer mainly to debt positions with the Havas Group (12 million euros).
Separate financial statements of
TIM S.p.A.
Note 23
Trade and miscellaneous payables and other
current liabilities
501
Supplier finance arrangements
TIM S.p.A. makes available to suppliers the use of certain financial instruments that enable them to advance
the collection of invoices (so-called reverse factoring).
These instruments do not involve TIM S.p.A. in any modification of the payment terms contractually
established with the supplier, as they are solely available to the suppliers themselves to manage, at their
discretion, more efficiently the relationship with financial institutions.
In addition, in some cases, TIM S.p.A. negotiates extensions of payment terms with specific suppliers so as to
bring them into line with the usual payment terms of the relevant product category.
In 2024, these transactions resulted in payment terms consistent with those applied to non-agreed suppliers of
120 days. The amounts subject to agreements in 2024 are overall in line with those of the previous year and
therefore did not have a significant impact on the Company's balance sheet figures.
Miscellaneous payables
These amounted to 1,074 million euros and decreased by 1,220 million euros compared to December 31, 2023
mainly in connection with the NetCo transaction; they mainly comprise:
■
the current portion of provisions for risks and charges amounting to 402 million euros;
■
payables to social security agencies amounted to 266 million euros: these include the short-term portion
(224 million) of the payable due to the INPS for the application of Art. 4 of Law no. 92 of June 28, 2012 and
former Art. 41, subsection 5bis of Italian Legislative Decree no. 148/2015, as per the agreements signed by
TIM S.p.A. with the trade unions, as specified in the note “Miscellaneous payables and other non-current
liabilities”;
■
payables to subsidiaries of 55 million euros: include 13 million euros for tax consolidation (mainly to Noovle
S.p.A. Società Benefit, Telecom Italia Sparkle S.p.A. and TIM Retail S.r.l.) and other operating payables of 42
million euros, particularly to Noovle S.p.A. Società Benefit (24 million euros), Telecom Italia Sparkle S.p.A. (7
million euros), Telsy S.p.A. (5 million euros) and Olivetti S.p.A. Benefit Company (3 million euros);
■
advances on government grants in connection with the 5G Plan Coverage under the NRRP amounting to 53
million euros (included under Other). Compared to December 31, 2023, advances for the other two calls (1G
Plan and 5G Backhauling Plan) totaling 705 million euros as of December 31, 2023, were contributed as part
of the NetCo transaction;
■
tax payables, amounting to 34 million euros: mainly refer to the amount owed to the tax authorities for
withholdings made as withholding agent (28 million euros), as well as VAT payable (2 million euros) and
government concession tax payable (2 million euros).
Other current liabilities
Amounted to 840 million euros and increased by 4 million euros compared to December 31, 2023; they include:
■
The liability arising from contracts with customers (Contract liabilities), amounting to million euros (756
million euros as of December 31, 2023): The item shows the liabilities from customers linked to the
Company’s obligations to transfer goods and services for which received a price. Liabilities with customers,
generally with a maturity of up to 12 months, are shown below. Specifically:
•
Contract Liabilities amounting to 3 million euros (3 million euros at December 31, 2023): the item
includes bundle contracts (good and services packages) with performance obligations with different
timing for the recognition of revenues and consequent deferral of the fees originally recognized;
•
Customer-related items of 411 million euros (369 million euros at December 31, 2023): the item
includes trade payables following contractual relationships, such as the payable for prepaid traffic and
the subscription charges charged in advance;
•
Advance receipts and payments amounting to 41 million euros (47 million euros at December 31,
2023): the item includes trade payables following prepayments, such as deposits made by subscribers
for phone calls;
•
Deferred revenues from contracts with customers of 301 million euros (361 million euros at December
31, 2023): the item refers to the deferral of revenues from customers contracts and mainly includes:
–
deferred revenues for rent and maintenance of 237 million euros (194 million euros as of December
31, 2023);
–
deferred revenues related to subscription charges of 51 million euros (46 million euros as of
December 31, 2023).
The item as of December 31, 2023 also included deferred interconnection fee revenues of 111 million
euros, which were contributed as part of the NetCo transaction.
■
Other revenues and deferred income amounted to 84 million euros (21 million euros as of December 31,
2023): refer mainly to the current portion of deferred income related to the MSA with Fibercop S.p.A. The
balance as of December 31, 2023, on the other hand, mainly referred to deferred revenues from
transmission capacity transfer contracts, which were contributed as part of the NetCo transaction.
■
Others, zeroed out as of December 31, 2024 (35 million as of December 31, 2023): these were payables for
advances on network work in progress, which were contributed as part of the NetCo transaction.
Separate financial statements of
TIM S.p.A.
Note 23
Trade and miscellaneous payables and other
current liabilities
502
NOTE 24
DISPUTES AND PENDING LEGAL ACTIONS,
OTHER INFORMATION, COMMITMENTS AND
GUARANTEES
A description is provided below of the most significant judicial, arbitration and tax disputes in which TIM S.p.A.
was involved at December 31, 2024, as well as those that came to an end during the year.
The Company has posted liabilities totaling 336 million euros for those disputes described below where the risk
of losing the case has been considered probable.
It should be noted that for some disputes described below, on the basis of the information available at the
closing date of the Annual Financial Report and with particular reference to the complexity of the proceedings,
to their progress, and to elements of uncertainty of a technical-trial nature, it was not possible to make a
reliable estimate of the size and/or times of possible payments, if any. Moreover, in those cases in which
disclosure of information on a dispute could seriously jeopardize the position of TIM or its subsidiaries, only the
general nature of the dispute is described.
Lastly, as regards the proceedings with the Antitrust Authority, please note that based on Article 15, subsection
1 of Italian Law 287/1990 (“Antitrust regulations”), the Authority has the right to impose an administrative
sanction calculated on the turnover of the Company in cases of breaches considered serious.
(a) Significant disputes and pending legal actions
Golden Power Case
In August 2017 the Prime Minister's office brought proceedings against TIM (as well as Vivendi) in order to verify
the fact that TIM has an obligation to notify, pursuant to the “Golden Power” law, Vivendi’s acquisition of
corporate control of TIM and the strategic assets it holds. In September 2017, the proceedings in question
concluded by affirming that this obligation did exist for TIM with effect from May 4, 2017 (the date of the
Shareholders’ Meeting that renewed TIM’s corporate boards).
As a result of this decision by the Presidency of the Council of Ministers, new and separate administrative
proceedings started for the imposition on TIM of the financial penalty laid down by the Golden Power law for
non-compliance with the aforementioned obligation to notify. These proceedings ended on May 8, 2018 with
the imposition of a financial penalty of 74.3 million euros.
The Presidency of the Council of Ministers also exercised Golden Power under the decrees of October 16, 2017
and November 2, 2017. The Company, is convinced that it has the legal arguments to demonstrate that it was
under no obligation to notify the control exercised over it by Vivendi, filed separate extraordinary appeals to
the President of the Republic to request the abrogation of the order of September 28, 2017 for assessment of
the Special Powers Decree of October 16, 2017, and the Special Powers Decree of November 2, 2017, and before
the Lazio Regional Administrative Court (TAR) against the aforementioned order of May 8, 2018, which
imposed a financial penalty, requesting its precautionary suspension. As regards the appeal to the Lazio
Regional Administrative Court (TAR) against the provision of May 8, 2018, which imposed the financial penalty,
the TAR, in upholding in July 2018 the interim petition lodged by the Company, has suspended payment of the
penalty. Subsequently, in a non-definitive ruling dated May 2019, the Lazio Regional Administrative Court
(TAR), in view of the “originality” of the distinction in proceedings between the assessment notice of
September 28, 2017 and the penalty-imposing decree of May 8, 2018: (i) accepted TIM’s request for provisional
measures to suspend the fine conditional on the offer of the guarantee; (ii) granted the suspension of the
procedure to wait for the final judgment in the (injurious) case pending before the President of the Republic
against the assessment notice of September 28, 2017; (iii) rejected the procedural objections raised by the
defendant administrations.
It should also be noted that in May 2018 a guarantee bond for 74.3 million euros was issued in favor of the
Presidency of the Council. TIM had been requested to submit such a bond for its application to Lazio TAR for
precautionary suspension of the collection of the fine imposed for alleged breach of Art. 2 of Decree Law 21 of
March 15, 2012 (the “Golden Power” law). The guarantee bond was subsequently renewed up to November 30,
2025.
On September 13, 2023, TIM was notified that more than five years had elapsed since the appeal was filed, in
accordance with Article 82 of the Code of Civil Procedure. TIM therefore requested that a public hearing be held
to discuss the appeal. The public hearing was scheduled for January 10, 2024. Following the hearing, by way of
order 709 of January 15, 2024, the Regional Administrative Court upheld the suspension of the proceedings, as
previously dictated by non-final judgment 6310 of May 23, 2019, and upheld the suspension of the
enforcement of the measure under the conditions dictated by that ruling, all of which pending the decision in
the extraordinary proceedings against the assessment notice of September 28, 2017.
In Opinion no. 1259/2024, rendered in the extraordinary proceeding against the assessment notice of
September 28, 2017, the Council of State agreed with the opinion expressed by the Lazio Regional
Administrative Court in its non-final judgment of May 2019, finding the appeal inadmissible because the
contested notice does not qualify as a measure but qualifies as a sub-procedural act forming part of the
sanctioning procedure (appealed to the Lazio Regional Administrative Court). Hence, on December 5, 2024, TIM
applied to the Lazio Regional Administrative Court for a precautionary measure to adjourn the proceedings
against the sanctioning decree, subject to the possibility of a further suspension pending the decision of the
Council of State on the extraordinary proceedings against the still pending Special Powers Decrees, and/or
pending the decree of the Presidency of the Republic to implement the aforementioned Council of State
Opinion no. 1259/2024. The hearing before the Regional Administrative Court is set for March 19, 2025.
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Furthermore, TIM appealed before the Lazio TAR and then appealed before the Council of State against the
provision with which Consob, on September 13, 2017, affirmed Vivendi’s control over TIM. In December 2020,
the Council of State issued a final judgment upholding TIM’s appeal and canceling the provision by Consob, a
significant premise to the entire subsequent proceedings of the Presidency of the Council in relation to the
obligation to Golden Power notification as described above. On June 14, 2021, Consob submitted an
extraordinary appeal to the Court of Cassation on grounds of jurisdiction; TIM filed an appearance, objecting
that the appeal is unlawful and inadmissible. Following the hearing in chambers held on October 11, 2022, on
January 24, 2023, the order was published whereby the Court of Cassation declared that Consob’s petition was
unacceptable, consequently ordering it to pay the dispute expenses.
Antitrust Case A428
At the conclusion of case A428, in May 2013, AGCM (the Italian Competition Authority) imposed two
administrative fines of 88,182,000 euros and 15,612,000 euros on TIM for abuse of its dominant position. The
Company allegedly (i) hindered or delayed activation of access services requested by OLOs through unjustified
and spurious refusals; (ii) offered its access services to final customers at economic and technical conditions
that allegedly could not be matched by competitors purchasing wholesale access services from TIM itself, only
in those geographic areas of the Country where disaggregated access services to the local network are
available, and hence where other operators can compete more effectively with the Company.
TIM appealed against the decision before the Regional Administrative Court (TAR) for Lazio, applying for
payment of the fine to be suspended. In particular, it alleged: infringement of its rights to defend itself in the
proceedings, the circumstance that the organizational choices challenged by AGCM (the Italian Competition
Authority) and allegedly at the base of the abuse of the OLO provisioning processes had been the subject of
specific rulings made by the industry regulator (AGCom), the circumstance that the comparative examination
of the internal/external provisioning processes had in fact shown better results for the OLOs than for the TIM
retail department (hence the lack of any form of inequality of treatment and/or opportunistic behavior by TIM),
and (regarding the second abuse) the fact that the conduct was structurally unsuitable to reduce the margins
of the OLOs.
In May 2014, the judgment of the Lazio TAR was published, rejecting TIM’s appeal and confirming the fines
imposed in the original order challenged. In September 2014 the Company appealed against this decision.
In May 2015, with the judgment no. 2497/15, the Council of State found the decision of the court of first
instance did not present the deficiencies alleged by TIM and confirmed the AGCM (the Italian Competition
Authority) ruling. The company had already proceeded to pay the fines and the accrued interest.
In a decision notified in July 2015, AGCM (the Italian Competition Authority) started proceedings for non-
compliance against TIM, to ascertain if the Company had respected the notice to comply requiring it to refrain
from undertaking behaviors analogous to those that were the object of the breach ascertained with the
concluding decision in case A428 dated May 2013.
On January 13, 2017, TIM was served notice of AGCM’s final assessment, which recognized that TIM had
complied in full with the A428 decision and, as such, the conditions for the imposition of a fine for non-
compliance were not present.
AGCM (the Italian Competition Authority) recognizes, furthermore, that TIM’s behavior subsequently to the
2013 proceedings has been directed towards continuous improvement of its performance in the supply of
wholesale access services concerning not only the services which were the subject of the investigation, but also
the new Ultrabroadband access services. In assessing compliance, AGCM (the Italian Competition Authority)
recognized the positive impact of the implementation, albeit not yet completed, of TIM's New Equivalence
Model (NME). The AGCM (the Italian Competition Authority) decision orders TIM to: (i) proceed with the
implementation of the NME until its completion which is expected to be by April 30, 2017; (ii) to inform the
Authority about the performance levels of the systems for providing wholesale access services and about the
completion of the corresponding internal reorganization plan by the end of May 2017. The Company quickly
complied with both orders, and the Authority communicated its satisfaction on August 9, 2017.
Vodafone lodged an appeal with the Lazio Regional Administrative Court against the final decision in the
proceedings for non-compliance taken by AGCM (the Italian Competition Authority). TIM filed an appearance,
as in the other lawsuits filed in March 2017 by the operators CloudItalia, KPNQWest Italia and Digitel. With
judgments 311 and 312/23 respectively of January 11, 2023, the regional administrative court rejected the
appeals lodged by KPNQWest and CloudItalia. On April 11, 2023, KPNQWest (now Comm 3000) filed an appeal
the regional administrative court’s ruling before the Council of State. The public hearing before the Council of
State was held on October 24, 2024. In a ruling dated November 6, 2024, the Council of State rejected
COMM3000’s appeal on the merits, confirming the legitimacy of the AGCM order that ruled TIM to be
compliant with Order A428.
Colt Technology Services - A428
With writ of summons before the Milan Court served in August 2015, the operator Colt Technology Services
filed a damages claim based on the A428 decision, requesting compensation for alleged damages suffered
from 2009 to 2011 as a result of purportedly inefficient and discriminatory conduct by TIM in the wholesale
service supply process. The damage claimed was quantified as 27 million euros in loss of profits for the alleged
non-acquisition of new customers, or for the alleged impossibility of supplying new services to the customers it
had already acquired; the other party also formulated a request for compensation for the damages to its
image and commercial reputation. This case follows the extrajudicial claim for approximately 23 million euros,
previously advanced by Colt in June 2015, which the Company rejected in its entirety. TIM filed an appearance,
contesting all of the plaintiff’s allegations. In a judgment of February 21, 2024, the Court of Milan rejected in its
entirety Colt's claim for damages in the amount of 27 million euros.
Colt served a notice of appeal against the judgment. At the hearing in the Milan Court on February 18, 2025,
the judge rejected the opposing party's preliminary motions and remanded the case for decision. The hearing
for closing arguments was set for March 25, 2026.
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COMM 3000 S.p.A. (formerly KPNQWest Italia S.p.A.) - A428
With writ of summons before the Rome Court, COMM 3000 S.p.A.(formerly KPNQWest Italia S.p.A.) filed a
damages claim for a total of 37 million euros in compensation for alleged anticompetitive and abusive conduct
over the period 2009–2011, in the form of technical boycotting (refusals to activate wholesale services – KOs);
the claim was based on the contents of the decision of AGCM (the Italian Competition Authority) that settled
the A428 case. TIM filed an appearance, contesting all of the plaintiff’s allegations. In the judgment with ruling
in April 2019, the Court of Rome partially received the petitions of COMM 3000 S.p.A. (formerly KPNQWest Italia
S.p.A.), sentencing TIM to pay an amount significantly lower than the amount in the counterparty's damages
claim. In June 2019, TIM appealed against the judgment. In the judgment given in April 2021, the Court of
Appeal of Rome partly upheld TIM’s appeal, reducing the amount of the compensation due to COMM 3000,
which was in any case entirely covered by the relevant provision. In November 2021, TIM has appealed to the
Court of Cassation over the judgment of the Court of Appeal of Rome in. The meeting in Council Chamber took
place on June 13, 2023. By interlocutory order of July 19, 2023, the Court reinstated the case to the case
register. On October 30, 2024, a public hearing was held and the case was reserved for decision. In a ruling
dated January 28, 2025, the Supreme Court upheld the partially favorable ruling of the Rome Court of Appeal.
Eutelia and Clouditalia Telecomunicazioni (now Irideos) - A428
With a writ of summons dated May 2020, Eutelia in Extraordinary Administration and Clouditalia
Telecomunicazioni S.p.A., purchaser of Eutelia's TLC branch, brought an action against TIM before the Court of
Rome, making claims for damages, of around 40 million euros, for damages allegedly suffered, in the period
2009-2012, following the technical boycott and margin squeeze conduct, subject of AGCM (the Italian
Competition Authority) procedure A428. TIM filed an appearance, contesting the claims made by the opposing
party and formulating a counterclaim, subject to quantification of the damages incurred during the
proceedings. On April 1, 2022, AGCM (the Italian Competition Authority) deposited the opinion envisaged by
Art. 14, third subsection of Italian Legislative Decree 3/2017, whereby it: (i) proposed certain benchmarks for use
to define the counterfactual scenario on which basis to quantify the damages allegedly suffered by Eutelia and
Clouditalia; (ii) provided some additional indication and criteria to estimate the various damage items
demanded by Eutelia and Clouditalia. At the hearing held on June 15, 2022, the Investigating Judge assigned
time to the parties until July 8, 2022, by which to deposit written notes on the implications of the opinion of the
AGCM (the Italian Competition Authority) and the contents of any queries to be raised with the court appointed
expert. On October 24, 2022, the judge lifted the reservation and ordered an expert report on the an of TIM’s
conduct and the quantum of any damages suffered by Eutelia and Irideos as a result of such. On November 15,
2022, the court-appointed expert witness was sworn in. The hearing to examine the court-appointed expert,
originally scheduled for October 18, 2023, has been postponed to February 7, 2024. Following a request from
the court-appointed expert to extend the deadline for filing the final report, the Judge once again postponed
the hearing to examine the court-appointed expert to May 22, 2024. Ahead of the cross-examination of the
court-appointed expert, TIM filed a motion to renew or add to the expert’s operations. The motion was not
granted by the Judge, who set a hearing for closing arguments on September 17, 2025.
Antitrust case A514
In June 2017 AGCM (the Italian Competition Authority) started proceedings A514 against TIM, to ascertain a
possible abuse of its dominant market position in breach of article 102 of the “Treaty on the Functioning of the
European Union”. The proceedings were started based on some complaints filed in May and June 2017, by
Infratel, Enel, Open Fiber, Vodafone and Wind Tre, and concerns a presumed abuse of TIM’s dominant position
in the market for wholesale access services and for retail services using the Broadband and Ultrabroadband
fixed network. In particular, the AGCM (the Italian Competition Authority) hypothesized that TIM had adopted
conduct aimed at: (i) slowing and hindering the course of the Infratel tender processes so as to delay, or render
less remunerative the entry of another operator in the wholesale market; (ii) pre-emptively securing customers
on the retail market for Ultrabroadband services by means of commercial policies designed to restrict the
space of customer contendibility remaining for the competitor operators.
After the start of the proceedings, the Authority's officials carried out an inspection at some of TIM’s offices in
the month of July 2017. On November 2, 2017, TIM filed a defense brief in which, in support of the correctness
of its actions, it challenged all the arguments that the conduct it had allegedly engaged in, and which was the
subject of the case, was unlawful.
On February 14, 2018, AGCM (the Italian Competition Authority) resolved to extend the scope of the case to
investigate further behavior concerning TIM’s wholesale pricing strategy on the market for wholesale access to
Broadband and Ultrabroadband, and the use of the confidential information of customers of the alternative
operators.
On July 5, 2018 TIM filed proposed undertakings which, if accepted by the Authority, would close the
investigation without any offence being established or sanction being administered. The undertakings were
considered as admissible by the Authority, that market tested them in August and September.
On October 30, 2018, TIM replied to observations made by third parties and modified its proposed
undertakings. With its decision notified on December 4, 2018, AGCM (the Italian Competition Authority) once
and for all rejected the proposed series of undertakings as it considered them unsuitable in light of the
objections raised.
On March 4, 2019, TIM requested AGCM (the Italian Competition Authority) for an extension of the deadline for
closing the proceedings (initially set for May 31, 2019).
On April 10, 2019, AGCM (the Italian Competition Authority) resolved to extend the deadline for conclusion of
the proceedings until September 30, 2019. On May 17, 2019, AGCM (the Italian Competition Authority) notified
TIM of the results of the investigation (CRI). In the CRI, AGCM (the Italian Competition Authority) essentially
confirmed the case for the prosecution outlined in the start-up and extension of the proceedings orders.
On June 12, 2019 AGCM (the Italian Competition Authority) extended the deadline for deposit of TIM's final
defence to September 20, 2019 and set the final hearing for September 25, 2019.
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On September 18, 2019, AGCM (the Italian Competition Authority) resolved to further extend the deadline for
conclusion of the proceedings, which were scheduled for February 28, 2020.
On March 6, 2020, TIM was notified of the decision to close the investigation: AGCM (the Italian Competition
Authority) ruled that TIM had abused its dominant position, finding that TIM had put in place an
anticompetitive strategy designed to hinder the competitive development of investment in Ultrabroadband
network infrastructure. The fine imposed on TIM for the anti-competitive offence is 116,099,937.60 euros.
On June 25, 2020 TIM sent AGCM (the Italian Competition Authority) the so-called compliance report as
ordered in the final provision.
In May 2021, the Company in any case paid the fine.
TIM appealed the aforementioned fine before the Lazio Regional Administrative Court (TAR). By judgment
1963/2022 of February 28, 2022, TIM’s appeal was rejected; TIM has appealed to the Council of State against
the decision of the regional administrative court.
In August 2022, Irideos notified a deed of intervention ad opponendum with respect to TIM’s principal appeal.
The related hearing for oral discussion was scheduled for May 25, 2023. At the end of the hearing, the Council
of State ordered a report from a court-appointed expert on three issues regarding the profitability of the
investment in “white areas” with low population density. On October 11, 2023, the court-appointed experts
were sworn-in in the Council of State and requested an extension to the completion deadlines. Under the new
deadlines granted by the Council of State, the expert report was filed in May 2024.
At the public hearing on October 10, 2024, the case was reserved for decision; Open Fiber requested that the
operative part be published in advance. On October 25, 2024, the Council of State published the operative part
of the judgment, in which it dismissed the motions (including preliminary motions) of the parties and partially
upheld the appeal and, partially reforming of the appealed judgment, upheld the appeal at first instance only
insofar as the measurement of the penalty imposed, which is reduced by 25%; it dismissed all other parts of
the appeal and upheld the contested order from all other counterclaims. On November 13, 2024, the judgment
was published and TIM initiated the necessary procedures to obtain partial restitution of the penalty in the
amount of 29,024,984.40 euros, plus statutory interest, from the date of payment until the date of actual
restitution. On February 27, 2025, AGCM notified the Ministry of Enterprises and Made in Italy of the clearance
for payment to TIM of the aforementioned amount following the Authority's redetermination at 87,074,953.20
euros of the penalty imposed on TIM for the conduct ascertained in Order No. 28162 of February 25, 2020.
Open Fiber
In March 2020, Open Fiber (OF) sued TIM before the Court of Milan, claiming damages of 1.5 billion euros for
alleged abuse of an exclusive and dominant position in relation to OF. The alleged actions consist of: (i)
preemptive investments in FTTC networks in white areas; (ii) initiating specious legal action to obstruct Infratel
tenders; (iii) spurious repricing of certain wholesale services; (iv) commercial lock-in offers on the retail market;
(v) false disclosure to AGCOM in connection with the approval of a wholesale offer and spreading rumors about
TIM being interested in acquiring OF; (vi) discriminatory access conditions to TIM passive infrastructure. TIM
filed an appearance, contesting the arguments of OF. Enel S.p.A. intervened in the proceedings, asking that
TIM be ordered to compensate all damages suffered and being suffered by Enel and OF, without, however,
quantifying such. During the course of proceedings, Open Fiber redetermined the damage allegedly suffered,
taking it to 2.6 billion euros plus interest and monetary revaluation. Open Fiber has also clarified that it believes
such damages are still to be suffered. Enel then quantified the damages allegedly suffered as approximately
228 million euros, plus interest. On October 19, 2022, the hearing was held for admission of the evidence, after
which the judge reserved the right to deliberate. By order of July 17, 2023, the Court of Milan lifted the
reservation and deferred the hearing for delivery of the verdict until April 3, 2024. At the hearing of April 3, the
Judge ordered that Court obtain the expert witness report rendered in the appeal proceedings brought by TIM
before the Council of State against the unfavorable ruling of the Regional Administrative Court relating to fines
imposed in relation to case A514. The case was then adjourned to be heard on June 12, 2024, with the Judge
reserving the right to deliberate.
By order served on July 5, it was deemed fit – in order to adjudicate whether to stay the proceedings as
requested by TIM – to invite the Parties to make their closing arguments. For this purpose, a hearing was set for
September 18, 2024, with the Parties ordered to make their submissions in writing and invited to waive the
time limits for the filing of closing briefs. This hearing was replaced by the filing of written notes only. The Court
of Milan, in accepting the motion of TIM, ordered to stay the proceedings until the proceedings before the
Council of State are concluded.
Following the publication of the Council of State’s ruling on November 13, 2024, Open Fiber applied for the case
to be resumed on November 18, 2024, and simultaneously applied for a hearing to be set. The Board has not
yet issued any ruling in this regard.
Irideos
In January 2022, Irideos summonsed TIM to the Court of Rome, making a claim for damages allegedly suffered
as a consequence of the unlawful conduct of TIM, as sanctioned by AGCM (the Italian Competition Authority),
with the provision that concluded case A514 (“follow-on claim”). The compensation claim comes to
23,204,079.87 euros for damages caused by the anti-competitive behavior of TIM from 2017 to 2019 (with
effects also in subsequent years) on the market for services of wholesale access to the Broadband and
Ultrabroadband fixed network (the “wholesale market”) and on the market for retail telecommunications
services on the Broadband and Ultrabroadband fixed network (the “retail market”). TIM filed an appearance,
contesting the opposing party’s arguments. At the hearing held on June 1, 2022, the investigating judge (i)
assigned the parties time for depositing the briefs with terms running from February 15, 2023 and (ii) deferred
the case to the hearing of June 7, 2023. The hearing for the taking of evidence was set for October 5, 2023. The
Judge, having taken note of Irideos' request to defer the hearing and motivated by the judgment pending in
case A514 before the Council of State, deferred the hearing of the parties until October 10, 2024, which was
further postponed to March 13, 2025.
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TIM S.p.A.
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Eutelia and Voiceplus
In June 2009, Eutelia and Voiceplus asked that alleged acts of abuse by TIM of its dominant position in the
premium services market (based on the public offer of services provided through so-called Non Geographic
Numbers) be investigated. The complainants quantified their damages at a total of approximately 730 million
euros.
The case follows a precautionary procedure in which the Milan Appeal Court prohibited certain behaviours of
the Company relating to the management of some financial relations with Eutelia and Voiceplus concerning
the Non Geographic Numbers, for which TIM managed the payments from the end customers, on behalf of
such OLOs and in the light of regulatory requirements. After the ruling of the Milan Court of Appeal accepting
TIM's objections, declaring that it was not competent in this matter and referring the case to the Civil Court,
Eutelia (in extraordinary administration) and Voiceplus (in liquidation) resubmitted the matter to the Court of
Milan. The first hearing took place in March 2014. TIM filed an appearance challenging the claims of the other
parties. After the collapse of Voiceplus, the Court of Milan declared the case suspended in an order in
September 2015. The case was later resumed by Voiceplus.
In its judgment issued in February 2018, the Court of Milan accepted TIM's defence and rejected the plaintiffs’
claim for compensation, ordering them, jointly and severally, to pay the legal costs. In March 2018, Eutelia and
Voiceplus lodged an appeal against the judgment in the first instance.
TIM appealed against the claim, requesting confirmation in full of the judgment in the first instance. The
appeal of Eutelia and Voiceplus was fully rejected with the judgment of August 5, 2019. In December 2019
Eutelia and Voiceplus appealed to the Court of Cassation against the judgment of the Court of Appeal. TIM
notified a counterclaim asking confirmation of the ruling appealed against. The hearing in chambers was
scheduled for February 16, 2023. At the hearing on February 16, 2023, at the request of the applicants, it was
ordered that the case be heard in open court, with a hearing scheduled for June 12, 2024.
The Court of Cassation, in a ruling published on June 25, 2024, declared inadmissible Eutelia and Voiceplus’
appeal against the merit-based judgments which had thrown out the adversary's enormous compensation
claim.
The Court found that (i) the question of relevant market was not relevant to the ratio decidendi, and (ii) the
plaintiffs' other complaints aimed to call substantive deliberations into question.
The Court also ordered the counterparties to pay costs amounting to approximately 100,000.00 euros plus
accessories and the lump-sum reimbursement of general expenses in the maximum percentage allowed by
law.
28-day billing
AGCom resolution 121/17/CONS introduced instructions on billing intervals for telephony, prescribing, for fixed
telephony, that the interval should be monthly, or multiples thereof, and, for mobile telephony, that it should
be at least four-weekly. TIM appealed Resolution 121/17/CONS to the Regional Administrative Court. The
judgment rejecting the appeal was published in February 2018. TIM appealed this judgment to the Council of
State in June 2018. On September 23, 2020, the non-definitive ruling was published whereby the Council of
State joined the appeals submitted by TIM, Vodafone, Fastweb and Wind Tre and ordered the prejudicial
deferral to the European Union Court of Justice (EUCJ) on whether or not the Authority had the power to
regulate the frequency of renewal of the commercial offers and invoicing periods, at the same time rejecting
the other grounds of appeal submitted by the operators and suspending proceedings. On June 8, 2023, the EU
Court of Justice published its decision concluding that the Italian legislation granting AGCom the power to
impose a monthly or multi-monthly billing requirement on fixed and convergent telephone service operators
for the renewal and invoicing of such offers, is not contrary to EU law. When proceedings resumed before the
Council of State in December 2023, TIM requested that its appeal be ruled inadmissible due to a lack of
interest. On January 18, 2024, the State Council declared the right to be extinguished.
With its Resolution 499/17/CONS, having confirmed the breach of Resolution 121/17/CONS, AGCom fined TIM
1,160,000 euros, ordering it to make provision – when the billing cycle was restored to monthly intervals or
multiples thereof – to return the amounts corresponding to the fee for the number of days that, from June 23,
2017, had not been used by the users in terms of the supply of service due to the misalignment of the four-
weekly and monthly billing cycles.
In March 2018 with resolution no. 112/18/CONS AGCom (i) revoked the preceding resolution 499/17/CONS in the
part in which TIM was ordered to repay the amounts presumably lost from June 23, 2017 onwards, with the
four-weekly billing cycle, (ii) cautioned TIM, with regard to fixed-line voice services only, against postponing the
starting date of invoices issued after the return to monthly invoicing by the same number of days as those
presumably deducted starting from June 23, 2017 with the four-weekly invoicing cycle.
Under Presidential Decree 9/18/PRES, AGCom amended the provisions of Decision 112/18/CONS requiring the
deferment of billing once the billing cycle was restored to monthly intervals, or multiples thereof, while also
ordering that the timescales for complying with the order would be identified after hearings with the operators
and the main consumer protection associations.
In July 2018, AGCom issued resolution 269/18/CONS, with which it set December 31, 2018 as the date by which
the operators had to return to their fixed network customers a number of days of service equal to those eroded
as an effect of 28-day billing, or propose to the affected customers any alternative compensatory measures,
after having notified them to AGCom. TIM has appealed all of the above resolutions.
With the judgment published in November 2018, the Regional Administrative Court (TAR) canceled the
pecuniary administrative sanction of 1.16 million euros imposed with Resolution 499/17/CONS, and confirmed
the obligation of restitutio in integrum to the fixed-line customers by December 31, 2018, the grounds for the
judgment were instead published on May 10, 2019. TIM appealed the judgment to the Council of State.
In judgment 39 of January 2, 2024, the Council of State rejected TIM's main appeal, in keeping with its prior
rulings in the appeals brought by the other operators, and upheld the legitimacy of the measures adopted by
AGCom. In the same decision, the administrative court of appeal also rejected AGCom's counter-appeal aimed
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at reinstating the 1,160,000 euro sanction that had originally been imposed on TIM and was later annulled by
the Lazio Regional Administrative Court.
In August 2019, AGCom initiated a new sanctions procedure (CONT 12/19/DTC) for failing to comply with the
order to refund fixed and converged network customers for the days eroded by 28-day billing, through the
procedures established in resolutions 112/18/CONS and 269/18/CONS. At the end of this procedure, the
Authority found in Resolution 75/20/CONS that TIM had failed to comply with these resolutions and imposed a
fine of 3 million euros. In July 2020, TIM appealed the decision before the Regional Administrative Court. We
are waiting for a date to be fixed for the discussion hearing.
In the civil proceedings, by judgment published on October 14, 2021 the Court of Milan, under the scope of the
case on the merits brought by Associazione Movimento dei Consumatori in 2018 regarding the pricing and 28-
day renewal for fixed line and converging offers, confirmed the order given on June 4, 2018 by the same Court
upon closure of the complaint brought by TIM pursuant to Art. 669 terdecies of the Italian Code of Civil
Procedure and the measures set out therein, ordering TIM to fulfill the requests for repayment of prices paid as
a result of customer maneuvers - including discontinued, as indeed TIM had already been doing since 2018, at
the same time also extending the period relevant to the recognition of the reimbursement through to April 1,
2017 and therefore earlier than June 23, 2017, the date on which the operators will need to comply with
Resolution no. 121/17/CONS. TIM has appealed the judgment of the Court of Milan, at the same time filing a
request for suspension of its enforcement. With order of January 11, 2022, the Court of Appeal of Milan partially
accepted TIM’s request, suspending the charge in the judgment relating to the order to send a registered letter
to all discontinued customers that were subject to billing every 28 days to inform them of the possibility to
obtain a refund of the additional amounts paid as a result of the maneuver. By judgment published on
December 9, 2022, the Milan Court of Appeal confirmed the first instance judgment in full. On January 12, 2023,
TIM notified the appeal to the Court of Cassation and on January 16, 2023 it also filed the appeal pursuant to
Art. 373 of the Italian Code of Civil Procedure with the Milan Court of Appeal, asking that enforcement of the
ruling be suspended until the judgment pending before the Court of Cassation had been settled.
By order of February 14, 2023, the Milan Court of Appeal, in partially upholding TIM’s appeal, ordered
suspension of the judgment in connection with the order to send the recorded delivery letters to former
customers, whilst awaiting the decision of the Supreme Court. By Order published on February 15, 2024, the
Court of Cassation rejected TIM’s appeal.
On January 24, 2025, a public hearing was held on the appeal brought by TIM against Resolution no. 75/20/
Cons in which AGCom – alleging TIM to have failed to comply with previous resolutions setting out the
procedures for the restitution of “eroded days” to customers as a result of 28-day billing - had ordered the
Company to pay a fine of 3 million euros. This is the last dispute still pending on the 28-day billing issue, the
outcome of which could be influenced by the ruling of the aforementioned action brought by the Consumer
Movement Association in the civil courts. In fact, the Civil Court of Milan, having ascertained the commercial
practice introduced by TIM to be unlawful, had ordered TIM to put in place a series of restorative measures to
compensate customers for the detrimental effects of 28-day billing (all of which were punctually fulfilled) in a
decision that was upheld in full by the Court of Cassation in 2024. Consequently, the assumptions underlying
Resolution no. 75/20 regarding TIM’s alleged non-compliance are disproved by the documentary evidence
attached in the judgment of the Regional Administrative Court, which attest that TIM fully complied with the
decision-making rules of the Ordinary Judicial Authority which formed the basis of the judgment. At the
hearing on January 24, the case was reserved for judgment by the court following discussion. On February 13,
2025 the Lazio Regional Administrative Court's ruling was published rejecting the appeal filed by TIM against
Resolution No. 75/20/Cons.
Antitrust case I820
On February 19, 2018, AGCM (the Italian Competition Authority) initiated a I820 preliminary proceeding against
the companies TIM, Vodafone, Fastweb, Wind Tre and the industry association ASSTEL to investigate the
alleged existence of an agreement among the major fixed-line and mobile telephone operators to restrict
competition by coordinating their respective commercial strategies, in breach of Art. 101 of the TFUE.
The presumed coordination, according to the opening provision of the proceedings by AGCM (the Italian
Competition Authority), would take the form of the implementation of the obligation introduced by Article 19-
quinquiesdecies of Legislative Decree 148/2017 (converted by Law 172/2017) which requires operators of
electronic communication services to send out monthly (or monthly multiples) bills and renewed offers for
fixed and mobile services.
On March 21, 2018, AGCM (the Italian Competition Authority) issued a provisional precautionary measure
against all the operators involved in the proceedings with which it ordered the suspension, pending the
proceedings, of the implementation of the agreement concerning the determination of repricing
communicated to users at the time of reformulating the billing cycle in compliance with Law 172/17 and to
independently redetermine its commercial strategy. In its decision no. 27112 of April 11, 2018, AGCM (the Italian
Competition Authority) confirmed the precautionary measure.
On June 12, 2018, TIM filed an appeal with the TAR for the quashing of said measure.
On January 31, 2020, TIM was notified of the decision to close the investigation, in which AGCM (the Italian
Competition Authority) confirmed the existence of the agreement between TIM, Vodafone, Fastweb, Wind Tre,
but excluding Asstel from participation in the agreement. The fine imposed on TIM for participation in the anti-
competitive agreement was 114,398,325 euros. In April 2020, TIM also challenged the sanction order.
In a ruling published on July 12, 2021, the Lazio Regional Administrative Court upheld the petition and the
grounds added and submitted by TIM, canceling the measures taken by AGCM (the Italian Competition
Authority), including that relating to the existence of the agreement and application of the sanction.
On September 11, 2021, AGCM (the Italian Competition Authority) presented a petition to the Council of State,
requesting the cancellation of the judgment given by the regional administrative court.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
508
On July 25, 2023, the Council of State reformed the decision of the Lazio Regional Administrative Court,
upholding the validity of AGCM ((the Italian Competition Authority) measure in case I820 and referring to the
Authority to redetermine the sanction in view of the reduced duration of the infringement.
In view of the rulings of the Council of State on the quantum of the sanction, TIM – in a petition dated August
28, 2023 – asked the AGCM (the Italian Competition Authority) for the redetermination of the sanction to take
place in full adversarial proceedings between the parties as part of a special investigation procedure.
In its order of September 26, 2023, served on the Company on October 3, 2023, the AGCM (the Italian
Competition Authority) informed TIM that it had quantified the fine at 100,670,526.00 euros, holding that it had
no margins for discretion in executing the judgment of the Council of State. On October 12, 2023, TIM filed an
appeal to overturn the judgment of the Council of State; the hearing to discuss the revocation application was
set for March 6, 2025 and has subsequently been postponed to April 10, 2025. On October 13, 2023, TIM filed an
appeal before the Lazio Regional Administrative Court to annul the measure redetermining the sanction; TIM
also requested the precautionary suspension of the measure, but this was rejected by order of November 9,
2023. A hearing on the merits has yet to be set.
In a communication dated December 6, 2023, the Authority urged TIM to pay the penalty of 100,670,526.00
euros plus legal interest accrued from November 3, 2023 until the day of actual payment amounting to
5,535,913.60 euros. In a communication dated December 12, 2023, TIM contested the dueness of such interest
due to the absence of the prerequisites of liquidity and collectability required by Article 1282 of the Italian Civil
Code, as well as an error in the identification of the dies a quo for the calculation. The Authority’s Budget Office
responded on February 2, 2024, acknowledging an error in the calculation of legal interest, which was therefore
restated to the amount of 4,121,837.47 euros, but reiterating that the same is due. On March 29, 2024, TIM
lodged an appeal with the Lazio Regional Administrative Court against the communication from the Budget
Office, contesting both the error in the calculation of the interest due and a defect in the competence of the
Budget Office.
Antitrust Case I850
By decision given on December 15, 2020, AGCM (the Italian Competition Authority) started an investigation in
regard to the company Telecom Italia S.p.A., Fastweb S.p.A., Teemo Bidco S.r.l., FiberCop S.p.A., Tiscali Italia
S.p.A. and KKR & Co. Inc., to ascertain the existence of any breaches of article 101 of the TFEU in relation to the
coinvestment offer.
More specifically, the investigation regards the contracts governing the establishment and operation of
FiberCop and the supply agreements with Fastweb and Tiscali. AGCM (the Italian Competition Authority)
intends to verify that such agreements do not hinder competition between operators in the medium and long-
term and assure the rapid modernization of the country’s fixed telecommunications infrastructures.
On August 6, 2021, TIM submitted a proposal of undertakings to AGCM (the Italian Competition Authority) in
order to resolve the competition concerns subject of the investigation and close the proceedings without any
sanction being applied.
On September 7, 2021, AGCM (the Italian Competition Authority) judged these commitments to not be clearly
unfounded and ruled publication on the Authority’s website from September 13, 2021; thus market testing
began and was completed by October 13, 2021, the date by which all subjects so wishing submitted their
observations to AGCM in respect of the relevant commitments.
On December 14, 2021 AGCM (the Italian Competition Authority) extended the deadline for the conclusion of
the proceedings, initially set for December 31, 2021, to February 15, 2022.
Precisely during the meeting held on February 15, 2022, AGCM (the Italian Competition Authority) finally
resolved to approve the commitments insofar as they were considered suitable to eliminate the alleged anti-
competition aspects investigated.
As envisaged by the final ruling, on April 22, 2022, TIM sent AGCM (the Italian Competition Authority) a first
report on the measures taken to fulfill the commitments made.
On May 11, 2022, AGCM (the Italian Competition Authority) notified TIM of its acknowledgment of the
measures presented in such report.
On January 31, 2023 TIM sent AGCM (the Italian Competition Authority) a second report on the implementation
of the undertakings given.
On January 30, 2024, TIM sent AGCM (the Italian Competition Authority) the required annual report on the
implementation of the undertakings given.
By petition notified in April 2022, Open Fiber challenged the above AGCM (the Italian Competition Authority)
provision no. 3002, whereby the proceedings were closed, before the regional administrative court of Lazio; the
petitioner believes that the commitments, made mandatory by the closure, are not sufficient to remove the
anticompetitive aspects identified at the start of proceedings.
Upon completion of the interim hearing of last June 1, 2022, the regional administrative court rejected the
request and scheduled the merits hearing for January 26, 2023. At the January 26 hearing, after extensive
discussion, the judge reserved the right to deliberate. By judgment of April 14, 2023, the Regional
Administrative Court rejected as unfounded the appeal of Open Fiber, which on July 10, 2023, appealed the
Regional Administrative Court’s judgment to the Council of State.
The Council of State set a hearing to discuss this appeal on November 14, 2024, since postponed to April 10,
2025 due to the appellant’s indication that the AGCM might intervene, which could cause the interest in the
appeal of first instance to be extinguished.
On December 17, 2024, AGCM – accepting the claims of TIM and FiberCop – ruled to revoke the commitments
that were made binding by the Authority in Resolution no. 30002 of February 15, 2022 as part of these
proceedings.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
509
The Authority holds that, as of July 1, 2024. the antitrust concerns that existed under the initial hypothesis of
an agreement restricting competition have been extinguished following the unbundling of TIM’s fixed network
infrastructure.
Antitrust case I857
On July 6, 2021, AGCM (the Italian Competition Authority) started an investigation in regard to TIM and DAZN
for a possible understanding reached with a view to restricting competition in connection with the agreement
for the distribution and technological support for TV rights for Serie A football in the 2021-2024 period.
The investigation also aims to verify the restrictive nature of the understanding with reference to additional
elements regarding the possible adoption by TIM of technical solutions not available for competitor
telecommunications operators and which may effectively hinder the adoption of their own technological
solutions.
At the same time, the Authority has also initiated proceedings for the potential adoption of protective
measures.
By resolution passed on July 27, 2021, AGCM (the Italian Competition Authority) closed the interim proceedings,
considering that the initiatives and amendments to the agreement proposed by TIM and DAZN in the
meantime are presently able to prevent any serious and irreparable damage to competitors while
investigations are completed.
Indeed, said measures aim, as a whole, to avoid possible discrimination in the use of the DAZN service, due to
its activation by users using Internet connection services other than those offered by TIM. In addition, the
agreement between TIM and DAZN has been amended to guarantee DAZN complete freedom in applying
discounts and promotions. TIM has also undertaken to provide DAZN with a sufficient number of white label
set-top-boxes to also guarantee DAZN customers the viewing of matches over digital terrestrial TV, in the
event of connection problems.
Finally, TIM has undertaken to supply wholesale services to OAOs interested therein to manage traffic peaks
deriving from live data transmissions, regardless of the type of content transmitted.
On October 29, 2021 TIM submitted a proposal for undertakings to AGCM (the Italian Competition Authority)
with a view to resolving the competitive concerns that were the subject of the investigation and closing the
proceedings without the finding of any infringement and therefore without any sanction being applied.
On December 14, 2021, AGCM (the Italian Competition Authority) approved the publication of the
aforementioned proposal for undertakings on the Authority's website, as these undertakings, taken as a whole,
do not appear to be manifestly unfounded and are capable of removing the restrictions to competition
hypothesized in the measure initiating the investigation in question.
On January 5, 2022, with the publication on the AGCM (the Italian Competition Authority) website, market
testing began.
The deadline for rebuttal arguments and proposing any accessory amendments to the commitments
presented by TIM and DAZN is scheduled for March 7, 2022.
On February 23, 2022, TIM and DAZN were convened separately to the AGCM (the Italian Competition
Authority) offices. During the hearing, the Offices informed TIM – and thereafter confirmed this in the hearing
meetings – that in a hearing held on February 15, the Board deemed it necessary to make certain “accessory”
changes in order to approve the commitments submitted.
On March 4, 2022, TIM and DAZN requested an extension of the deadline for the submission of observations,
also in view of the new aspects that had emerged on February 23. The new deadline was set as March 23,
2022.
On March 22, 2022, TIM informed the Authority that the additional changes considered necessary by the Board
to approve the commitments would have entailed a complete overhaul of the contents and economic balance
of the agreements signed by TIM and DAZN, such as to make it no longer possible to pursue the hypothesized
business model. At the same time, TIM informed the Authority of the start of negotiations with DAZN possibly
concerning the revision of the distribution exclusivity clause, which was the main object of the Authority’s
investigation. Considering the complexity of negotiations, TIM requested an extension of another 30 days for
submission of observations. The extension was authorized and the new deadline set as April 23, 2022.
On April 20, 2022, in consideration of the extension of negotiations, also due to the complexity and economic
relevance of that being negotiated, DAZN and TIM requested an additional extension. The new deadline was
set as May 9, 2022.
On May 9, 2022, TIM informed the Authority that it had declared willing to DAZN to waive the exclusivity of the
distribution of Serie A football rights, as currently regulated by the Deal Memo, with DAZN consequently having
the faculty to distribute such rights also through third party operators and that, in exchange for the willingness
to waive this right, the Parties had begun negotiations for a review of the contracted economic commitment
envisaged by TIM.
On June 7, 2022, the Authority ruled on the rejection of the commitments submitted, which “would appear,
both where considered comprehensively and individually, to be unable to eliminate the anticompetitive
aspects identified in the resolution that started the proceedings, insofar as they do not resolve the competition
concerns highlighted in the initial proceedings, where not translated into shared contractual amendments
such as to eliminate the critical competition issues” highlighted by the Authority.
Again on June 7, 2022, the Authority ruled on the deferral of the deadline for the conclusion of proceedings to
March 31, 2023.
On August 2, 2022, TIM informed the Antitrust Authority that it had reached a new agreement with DAZN,
under which the latter has the faculty to distribute football rights through any third party, surpassing the
previous system of exclusivity in TIM’s favor.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
510
On January 20, 2023, notification was given of the investigation results (CRI).
AGCM (the Italian Competition Authority) believes that the agreement reached on January 27, 2021 (the “Deal
Memo”) had contents and resulted in effects that reduced competition for its entire duration (and therefore
until stipulation of the new agreement on August 3, 2022).
On January 31, 2023, AGCM (the Italian Competition Authority) resolved to extend the deadline for conclusion
of the proceedings until May 31, 2023.
TIM filed its statement of defense March 28, 2023, and the final hearing with the Authority was held on April 4,
2023.
On April 18, 2023, AGCM (the Italian Competition Authority) decided to again extend the deadline for the
conclusion of the proceedings to June 30, 2023, due to the complexity of the defence put forward by the
Parties in their pleadings.
On June 28, 2023, AGCM (the Italian Competition Authority) ruled that the conduct of TIM and DAZN
constitutes an agreement restricting competition in breach of Article 101 TFEU (the “AGCM Measure”).
Yet the arrangement – in particular regarding exclusivity – only lasted for approximately one month and its
potentially restrictive effects on competition were neutralized by the Authority’s timely initiation of the
investigation procedure on July 6, 2021.
Indeed, the precautionary sub-proceedings instigated at the start of the first football season of the three-year
period 2021-2024 actually prevented the effects of the arrangement from occurring, as at the beginning of
August 2021 TIM and DAZN discontinued the application of the disputed contractual clauses through their own
voluntary action. The original agreement was then replaced by a new contract, entered into in August 2022, in
which any exclusivity was completely eliminated, thus rooting out the antitrust concerns about exclusivity of
distribution.
Consequently, and in light of the mitigating circumstances recognized, AGCM (the Italian Competition
Authority) imposed a fine of 760,776.82 euros on TIM and a fine of 7,240,250.84 euros on DAZN.
On September 20, 2023, TIM paid the fine with reservations in view of the appeal brought by the Company with
the Lazio Regional Administrative Court against the decision against it.
On May 11, 2024, the Lazio Regional Administrative Court threw out the appeals of TIM and DAZN for the
annulment of the AGCM Measure and, without annulling the AGCM Measure (which will therefore continue in
effect until any amendment by the AGCM itself), declared that the AGCM (the Italian Competition Authority)
has a duty to resume the measure in accordance with the Lazio Regional Administrative Court's ruling.
In a nutshell, the Lazio Regional Administrative Court has valued the following reason, which is common to the
appeals of both Sky and Fastweb: According to the CRI, the prohibited agreement had market effects from
January 27, 2021 to August 4, 2022, whereas the AGCM Measure reduced the duration of the violation from
July 1, 2021 – when the marketing of the rights under Deal Memo commenced – up to the implementation of
voluntary measures adopted by TIM and DAZN as part of the precautionary sub-proceedings at the beginning
of August 2021. Therefore, the AGCM Measure appeared to contradict the investigation results (CRI), with the
Board having failed to adequately justified its decision to depart from the preliminary findings. At this point,
AGCM (the Italian Competition Authority) could reopen the investigation or appeal against the ruling of the
Lazio Regional Administrative Court. The TIM are considering its options for taking action against the ruling of
the Lazio Regional Administrative Court, which could include an appeal. TIM has decided to proceed with the
appeal, which has been served on all parties involved. By order published on October 4, 2024, the Council of
State rejected TIM’s petition to stay the proceedings. The hearing on the merits is awaiting scheduling.
On November 12, 2024, following Judgment no. 09315/2024 of the Regional Administrative Tribunal rendered
on May 11 which found that the initial decision of the AGCM was lacking in grounds, the Authority ruled to
initiate proceedings under Article 14 of Law no. 287/1990 (I857C) with the aim of redetermining the duration of
the infringement referred to in the I857 proceedings.
The proceedings must be completed by June 30, 2025.
Wind Tre S.p.A. – I857
By writ of summons brought before the Court of Milan and served in January 2024, operator Wind Tre S.p.A.
requested that TIM S.p.A. and DAZN limited be ordered to compensate, jointly and severally, Wind Tre S.p.A.
for the damage allegedly suffered by it as a result of the defendants' alleged violation of art. 102 of the TFEU
(abuse of a dominant position) due to having signed a mutual agreement in January 2021 (the “Deal Memo”)
which – in the claimant's opinion – would result in damage quantifiable in 69,803,012.00 euros.
In addition, Wind Tre S.p.A. is requesting that TIM S.p.A. be ordered to pay 10,266,377.00 euros in compensation
for the damage allegedly resulting from advertising campaigns which were intended, according to the
claimant, to suggest to customers that subscribing to TIM's FTTH service, or subscribing to TIMVISION's offer,
was the only way to access DAZN service content.
On April 29, 2024, TIM entered an appearance and counterclaim in which it called for Wind's claims to be
thrown out and for the proceedings to be suspended pending the Lazio Regional Administrative Court’s ruling
on TIM and DAZN’s application to annul the measure adopted by AGCM (the Italian Antitrust Authority) on
June 28, 2023 (in which AGCM resolved that the conduct of TIM and DAZN in signing the Deal Memo
constituted an agreement restricting competition). The preliminary hearing was initially scheduled for July 8,
2024, but has since been moved to March 11, 2025. In an Order dated February 28, 2025, the Court of Milan ex
officio ordered that the first hearing be further moved to September 10, 2025.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
511
Antitrust case I874
On December 17, 2024 AGCM ruled to initiate a preliminary investigation proceeding to assess the possible
anti-competitiveness of certain clauses contained in the current Master Service Agreement between TIM and
FiberCop regulating the relations between those entities following the transfer of fixed network activities from
TIM to FiberCop.
The proceedings must be concluded by January 31, 2026.
Universal Service
In a decision published in July 2015, the Council of State rejected the appeal lodged by AGCom and TIM against
the judgment of the Lazio Administrative Court (TAR) on the financing of the universal service obligations for
the period 1999–2003. With this judgment the judge had granted the appeals by Vodafone, annulling AGCom
decisions 106, 107, 109/11/CONS on the renewal of the related proceedings, which included Vodafone among
the subjects required to contribute, for a sum of approximately 38 million euros. Essentially, the judgment
confirms that the Authority has not demonstrated the particular degree of "replaceability" between fixed and
mobile telephony for mobile operators to be included among the subjects required to repay the cost of the
universal service, which means that AGCom needs to issue a new ruling. TIM has filed an application with
AGCom to renew the proceedings, and an appeal against the judgment of the Court of Appeal to the Court of
Cassation (which subsequently ruled that the appeal was inadmissible).
In April 2016 Vodafone appealed against the Ministry of Economic Development (MISE) and TIM to the Council
of State, for non-compliance with the judgment of the Council of State. This appeal referred to AGCom
decision 109/11/CONS (2003 yearly payment, on the basis of which Vodafone had paid the sum of
approximately 9 million euros as contribution, restitution of which was requested).
In its judgment of November 2016, the Council of State rejected the appeal, referring to the Regional
Administrative Court (TAR) the decision on the methods of compliance. In February 2017, Vodafone presented
the Lazio Regional Administrative Court with four new appeals against the Ministry of Economic Development
and TIM regarding observance of the ruling, upheld on appeal, countermanding the resolutions for the years
1999–2003 and repayment of the aforesaid amounts of around 38 million euros already paid to the Ministry of
Economic Development as a contribution.
With a judgment issued in June 2018, the TAR rejected all of Vodafone's appeals for observance, and, as
requested by TIM, expressly affirmed that AGCom must renew the proceedings, particularly with regard to the
determination of the degree of replaceability between fixed and mobile telephony. Vodafone challenged the
four judgments before the Council of State, which, with a decision of October 2019, upheld Vodafone's appeal
and confirmed the restitutory obligation of the sums in question applicable to TIM.
With resolution no. 263/20/CIR, AGCom started proceedings to renew the investigation into the iniquity of the
net cost of the universal service for 1999-2009 and the allocation of contribution expenses. Vodafone has
challenged this resolution before the Regional Administrative Court. The renewal proceedings concluded with
resolution 18/21/CIR, which substantively confirmed the draft order. This same resolution has only been
challenged before the regional administrative court by TIM for the years 1999 and 2000, while Vodafone, Wind
and Fastweb have challenged the resolution for all years concerned with opposite grounds. By judgments
published in February 2022, resolution 18/21/CIR was partially canceled; indeed, the regional administrative
court has rejected the main complaint reporting the lack of power of renovation and upheld only the grounds
hinged on the alleged unreasonable nature of the threshold envisaged by AGCom for the analysis of iniquity
second facie. Fastweb, Vodafone, Wind, AGCom and TIM appealed the judgment of the Regional
Administrative Court with the Council of State; The hearings on the merits were set for April 4 and April 27,
2023. At the end of the hearing on April 4, 2023, the case was reserved for judgment. On April 18, 2023, the
Council of Ministers issued a collegial order referring several issues to the EU Court of Justice for a preliminary
ruling.
The EU Court of Justice, in a ruling published on September 19, 2024, upheld the arguments of TIM's defense
and rejected Vodafone's arguments, ruling that: (i) proof of a certain degree of fixed/mobile substitutability is
not required for mobile operators to participate in the unfair burden sharing mechanism; (ii) it is up to Member
States to establish the criteria for assessing burden unfairness. The hearing on the cases stayed in the Council
of State pending the decision of the Court of Justice has been set for May 8, 2025.
Dispute relating to “Adjustments on license fees” for the years
1994-1998
With regard to the judgments sought in previous years concerning the Ministry of Communications' request for
payment of the balance of the amounts paid in concession charges for the years 1994-1998 (for a total of 113
million euros), the Lazio Regional Administrative Court (TAR) rejected the Company’s appeal against the
request for adjustment of the license fee for 1994 in the amount of approximately 11 million euros, 9 million
euros of which against turnover not received due to bad debts. TIM lodged an appeal. On the outcome of
proceedings, with the ruling of December 2019, the Council of State partially accepted TIM's position,
establishing the principle, according to which, the receivables referring to 1994 not collected for reasons not
attributable to the operator, could have been deducted from the tax base for calculating the concession fee. As
the Ministry of Economic Development has not followed up on TIM’s requests aimed at obtaining fulfillment of
the judgment, TIM has submitted a further petition to the Council of State for failure to execute the judgment,
but with judgment given in April 2022, the request for compliance brought by TIM was rejected. TIM appealed
for revocation of this judgment to the Council of State. This appeal was declared inadmissible in judgment
3318/2023.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
512
With two further judgments the Lazio Regional Administrative Court (TAR), reiterating the reasons expressed
previously, also rejected the appeals in which the Company challenged the requests for payment of
outstanding balances of license fees for the years 1995 and 1996-1997-1998, in the amount of approximately
46 million euros. TIM has appealed before the Council of State also against these judgments. By judgment
published in April 2022, the Council of State stressed the principles already set for 1994, namely that
receivables that have become uncollectable for reasons not the fault of the operator, correctly handled in the
accounts, on the financial statements and in terms of tax, can be deducted from the tax base for calculating
the concession fee.
With reference to the 1998 fee adjustment (equal to about 41 million euros), the Lazio TAR, by TAR order of
December 2018, suspended the judgment, raising preliminary questions with the EU Court of Justice on the
correct scope of EC Directive no. 97/13 (in the matter of general authorizations and individual licenses in the
field of telecommunications services on the basis of the currently pending litigation on the 1998 license fee,
currently pending before the Rome Court of Appeal and illustrated in a subsequent paragraph).
The referred questions were based, inter alia, on the question posed to the Court of Justice on the possible
conflict between the aforementioned EC Directive 97/13 and national law, which extended the obligation for
telecommunications license-holders to pay the license fee for 1998 (commensurate with a portion of turnover),
despite the liberalization process underway. In its judgment of March 2020, the EU Court of Justice held that
the EU regulatory system must be interpreted as not allowing national legislation to extend to 1998 the
obligation imposed on a telecommunications undertaking that was previously the concession holder (such as
TIM) to pay a fee calculated on the basis of turnover and not only the administrative costs connected with the
granting, management, control and implementation of the general authorizations and individual licenses
scheme. The Court held, inter alia, that the Council of State – having held in its judgment 7506/2009 that the
fee imposed for 1998 on TIM, the holder of an authorization existing on the date of entry into force of Directive
97/13, was due – interpreted national law in a way that was incompatible with EU law, as interpreted by the
Court in its judgment of February 21, 2008. Following the judgment of the EU Court of Justice, the opinion on
the final calculation of the 1998 charges was summarized before the Lazio Regional Administrative Court,
which, in a judgment given last February, declared TIM’s appeal as unacceptable for procedural reasons,
namely due to the prevalence of the formal ruling consisting of judgment no. 7506/09; in substantive terms, on
the other hand, the judgment of the EU Court of Justice once again ascertained the European Community
unlawful nature of the credit claim by the Public Administration to obtain payment of the 1998 charges and,
consequently, the final balance. The company has challenged the judgment of the Lazio Regional
Administrative Court to the Council of State.
The Council of State, following the public hearing of December 4, 2024, reserved judgment until after the ruling
on the application brought in the Court of Cassation by the Presidency of the Council of Ministers to annul the
ruling of the Rome Court of Appeals upholding TIM’s claim (in relation to the 1998 concession fee).
Brazil - Opportunity arbitration
In May 2012, TIM and Telecom Italia International N.V. (now merged in Telecom Italia Finance) were served
with a notice of arbitration proceedings brought by the Opportunity group, claiming compensation for
damages allegedly suffered for presumed breach of a settlement agreement signed in 2005. Based on the
claimant’s allegations, the damages relate to circumstances that emerged in the criminal proceedings pending
before the Milan Court regarding, inter alia, unlawful activities engaged in by former employees of TIM.
The investigatory phase having been completed, the hearing for oral discussion took place in November 2014,
after which the parties filed their concluding arguments in preparation for the decision on the case.
In September 2015, the Board of Arbitration declared the proceedings closed, as the award was going to be
filed.
In September 2016 the ICC Court notified the parties of its judgment, based on which the Court of Arbitration
rejected all the claims made by the Opportunity group and decided that the legal costs, administrative costs
and costs for expert witnesses should be split between the parties (the “2016 Arbitration Award”).
In April 2017 the Opportunity group filed an appeal against the 2016 Arbitration Award before the Paris Court of
Appeal.
In November 2017, TIM and Telecom Italia Finance received from the Secretariat of the ICC’s International
Court of Arbitration notice of a Request for Revision of the 2016 Arbitration Award, filed by the Opportunity
group, asking for a new award. A Board of Arbitration was subsequently established.
In October 2018, TIM and Telecom Italia Finance requested proceedings with the Paris Court of Appeal to be
suspended, in the light of proceedings pending with the Court of Arbitration of the International Chamber of
Commerce to review the same 2016 Arbitration Award. In November 2018, the Paris Court of Appeal
suspended the proceedings until the decision is taken by the Court of Arbitration in the review proceedings.
As regards the proceedings to review the 2016 Arbitration Award, in October 2019 the ICC held the discussion
hearing in Paris. In August 2020, the Arbitration Court issued the award rejecting the Request for Revision
presented by the Opportunity Group (the “2020 Arbitration Award”). In December 2020, the Opportunity group
filed an appeal against the 2020 Arbitration Award before the Paris Court of Appeal. In May 2021 the
Opportunity group asked the Paris Court of Appeal to summarize the proceedings brought against the 2016
Arbitration Award. Thereafter, the Opportunity Group, TIM and Telecom Italia Finance filed their briefs in the
two proceedings pending before the Paris Court of Appeal, respectively against the 2016 Award and the 2020
Award. On January 8, 2024, both appeal proceedings were heard before the Paris Court of Appeal.
In its decision of May 2, 2024, the Paris Court of Appeal quashed the 2016 Arbitration Award on the grounds
that the Court considered one of the members sitting on the arbitration panel to be affected by a conflict of
interest. In a separate decision issued on the same date, the Court ordered the reopening of the proceedings
on the 2020 Arbitration Award.
On June 20, 2024, TIM and Telecom Italia Finance lodged an appealed with the Court of Cassation against the
judgment quashing the 2016 Arbitration Award.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
513
On June 24, 2024, observations were submitted on the consequences that the quashing of the 2016 Arbitration
Award may have in relation to the appeal against the 2020 Arbitration Award. Proceedings are still pending.
On September 3, 2024, the Paris Court of Appeal rejected Opportunity’s petition to set aside the 2020 Award
following the annulment of the 2016 Award. The proceedings have therefore been stayed until the outcome of
the case initiated in the Court of Cassation, with the 2020 Award remaining in effect.
On December 19, 2024, TIM and Telecom Italia Finance filed a statement of defense in the proceedings before
the Supreme Court, aimed at overturning the decision of the Paris Court of Appeals to quash the 2016
Arbitration Award.
Iliad (winback)
By writ of summons served during the first quarter of 2020, Iliad Italia S.p.A. sued TIM before the Court of Milan
for alleged anti-competitive conduct, including through the Kena Mobile brand, which was allegedly aimed at
hindering its entry to and consolidation in the mobile phone market in Italy, seeking damages of at least 71.4
million euros.
TIM filed an appearance, fully disputing the requests of Iliad Italia S.p.A.; and, in turn, submitting a
counterclaim in accordance with Art. 2598 of the Italian Civil Code, with reference to the denigration
implemented by Iliad Italia S.p.A. in regard to TIM and formulating a symmetrical claim for damages. In the
first preliminary brief, Iliad updated its claim for damages, taking it to 242.8 million euros, and later to 292.8
million euros.
The proceedings ended in a judgment of September 25, 2023, which did not award Iliad any damages; TIM's
counterclaim was declared inadmissible.
In its notice of appeal served on December 15, 2023, Iliad requested that the first-instance judgment be
partially overturned, requesting, among other things, that TIM be ordered to pay full compensation of not less
than 292.8 million euros for the pecuniary and non-pecuniary damage suffered by Iliad.
On April 17, 2024, TIM entered an appearance in court and lodged a counterappeal. At the hearing of May 8,
2024, the Judge reserved the right to decide on the preliminary applications. The Judge, in an order of May 29,
2024 rendering the judgment that had been reserved at the hearing of May 8, 2024, having found that the
appellant in its appeal had once again offered as evidence part of the documents offered in the first instance
solely on a USB stick and that said USB stick could still not be consulted in that it was protected by a password
that had not been communicated, ruled that the password must be obtained and the USB stick accessed as a
result in the adversarial proceedings between the parties, thus postponing the hearing of the parties until
September 11, 2024. At the hearing of September 11, 2024, the Judge reserved the right to decide on the
preliminary requests.
In an order of October 14, 2024, a hearing was set for April 30, 2025 for case to be remitted for decision.
Iliad (restrictions on duration and termination costs)
By writ of summons notified in September 2021, Iliad Italia S.p.A. summonsed TIM before the Court of Milan for
the alleged application to customers of unlawful contractual conditions in terms of time limits and economic
costs for withdrawal with reference to mobile and fixed telephone offers, with a consequent petition to order
TIM to compensate damages, currently quantified as 120.4 million euros.
The hearing for closing arguments, originally set for May 28, 2024, was postponed to June 10, 2025.
Fastweb (Ethernet ATM migration)
By writ of summons notified in December 2021, TIM summonsed Fastweb before the Court of Milan, asking
that it be ascertained and declared that Fastweb had not achieved the minimum objectives of migration from
ATM bitstream technology to Ethernet bitstream technology in any of the 30 Collection Areas into which the
national territory is divided by the deadline envisaged by industry regulation and the migration plan agreed by
the parties; and therefore that it ascertain and declare that TIM is entitled to: (a) reverse the economic benefits
relating to this migration granted retroactively from April 12, 2016 to Fastweb and (b) obtain from Fastweb the
prices for the ATM bandwidth envisaged by the contract stipulated by the parties and the current Reference
Offers in force ratione temporis; (c) therefore declare and order Fastweb to pay TIM the total amount of
79,240,329.47 euros (or other amount, potentially greater, as may be assessed during the course of
proceedings).
Fastweb filed an appearance and submitted a counterclaim for abuse of a dominant market position and
breach of contract. Fastweb’s application is essentially based on alleged delays in the development of Ethernet
coverage. The counterparty complains of damages of around 81.4 million euros. Having noted that the
counterclaim made by Fastweb would appear to go beyond the profile of breach of contract and that, in this
case, the specialized business chambers may be competent to judge the matter, the investigating judge has
returned the case to the Chambers President for due consideration. The Chambers President has submitted
the case to the President of the specialized business chambers. The first hearing was held on December 14,
2022. The hearing for the admission of the preliminary motions has been postponed to June 13, 2023.
Subsequent to the filing of the preliminary motions, Fastweb re-quantified damage allegedly suffered as a
result of TIM's unlawful conduct at approximately 101.1 million euros (of which 13.2 million euros is subject to
the acceptance of TIM's main claim).
At the hearing of June 13, 2023, the investigating judge reserved judgment. To dissolve this reservation, the G.I.
ordered an expert report to be prepared by a court-appointed expert, who was to be appointed and sworn in
on November 21, 2023. The public hearing for the examination of the court-appointed expert witness has been
scheduled for June 17, 2025.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
514
Iliad (INWIT)
By writ of summons served in July 2022, Iliad Italia S.p.A. summonsed Telecom, Vodafone and Infrastrutture
Wireless Italiane S.p.A. (“INWIT”) before the Court of Milan to assess the alleged unlawful conduct of INWIT,
Telecom and Vodafone, consisting of refusal to allow Iliad to upgrade its mobile telephone transmission
systems installed on INWIT-owned infrastructures. As a result of this conduct, Iliad has asked that Telecom be
ordered, together with INWIT and Vodafone, to compensate the damages allegedly suffered, which it has
reserved the right to quantify during the course of proceedings. The initial hearing took place on April 5, 2023,
with the Judge reserving judgment on the objection as to the invalidity of the writ of summons brought by TIM.
The initial hearing was deferred to October 11, 2023, following the admittance of the objection as to the
invalidity of the writ of summons brought by TIM. At the hearing, the Judge set three dates for the exchange of
pleadings between the parties: November 10, 2023, December 11, 2023, and January 2, 2024. At the end of the
hearing of September 24, 2024 concerning the admission of evidence, the Judge adjourned the discussion of
the same to the hearing on January 21, 2025.
VAS (Value Added Services) - Seizure by the Public Prosecutor’s Office
of Milan
On April 24, 2024, the hearing was heard before the Court of Review of Milan. The Court of Review was called
upon to rule on the appeal lodged by TIM S.p.A. against the seizure order made against it by the investigating
judge of the Court of Milan.
After hearing the case, the Court of Review upheld the appeal, entering a decision on April 26, 2024 which:
■
ordered the seizure order for 248,941,282.30 euros against TIM S.p.A. to be quashed; and
■
ordered everything previously seized from TIM S.p.A. to be returned.
In particular, the events that led to the seizure by the Milan Public Prosecutor’s Office are summarized below.
On February 29, 2024, TIM S.p.A. had been notified of a seizure order issued on February 8, 2024 by the Judge
for Preliminary Investigations of Milan, which had ordered the preventive seizure of the sums held in the
current accounts in the Company's name, for a total amount of 248,941,282.30 euros.
The measure concerned an alleged computer fraud (Article 640-ter of the Criminal Code) in the field of the so-
called “VAS” (i.e. Value Added Services) provided by third-party companies called CSPs (i.e. “Content Service
Provider”).
TIM S.p.A. is not under investigation in the proceedings in question, and that the offence in dispute is not
among those that, pursuant to Legislative Decree no. no. 231 of 2001, could theoretically constitute a
prerequisite for administrative offences, attributable to the Company.
With specific reference to TIM S.p.A., evidence of a possible fraudulent phenomenon in the sector emerged
only in 2019, due to the significant number of disavowals of VAS services recorded in that year.
During that period, the Company reported these events to the Public Prosecutor's Office of Rome, in whose
proceedings, currently being dismissed, the Company's role as a victim of the crime was confirmed.
In addition, the Company promptly carried out all the necessary actions aimed at neutralizing the
phenomenon of illicit activations of VAS services.
(b) Other information
Vivendi S.E.
On December 15, 2023, TIM S.p.A. was served an ordinary writ of summons from the shareholder Vivendi,
contesting the legitimacy of the board resolution of November 5, 2023 approving the sale of TIM’s fixed
network assets and the investments held in FiberCop S.p.A. and Telenergia S.r.l. (“NetCo”) by Optics BidCo
S.p.A. (a subsidiary of KKR). Vivendi did not make any application for precautionary injunction, nor did it
request an urgent halt to executing the resolution and the consequent negotiations. The Company appeared in
the proceedings to contest the merits of the arguments and requests made by Vivendi, confirming the
legitimacy of the resolutions adopted by the Board of Directors and the agreements signed with Optics BidCo.
The Court of Milan, in its ruling of January 14, 2025, declared the application brought by Vivendi to be
inadmissible due to a lack of interest in the action and a lack of standing, and ordered the plaintiff to pay TIM
costs of approximately 40,000 euros.
Dispute concerning the license fees for 1998
TIM has summoned the Prime Minister’s Office to appear in a civil suit for compensation for damages caused
by the Italian State through appeal ruling 7506/09, handed down by the Council of State in breach, in the view
of the Company, of Community law.
The main claim which the proceedings are founded on is based on community jurisprudence that recognizes
the right to assert the responsibility of the State in relation to violation of rights recognized in community law
and injured by a judgment that has become definitive, in respect of which no other remedy may be applied.
The judgment of the Council of State definitively denied TIM the right to obtain restitution of the concession
charge for 1998 (totaling 386 million euros for Telecom Italia and 143 million euros for the former TIM
Company, plus interest), already denied by the Lazio regional administrative court despite the favorable and
binding opinion of the European Court of Justice in February 2008. This judgment concerned the conflict
between EC Directive 97/13 on general authorizations and individual licenses in the telecommunications
services industry, and the national regulations that had deferred, for 1998, the obligation to pay the fee
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
515
payable by telecommunications concession holders, despite the intervening deregulation process. The
Company then proposed an alternative compensation claim, within the sphere of the same proceedings, for
tort pursuant to art. 2043 of the Italian Civil Code. The compensation claimed has been quantified as
approximately 529 million euros, plus legal interest and revaluation. The Avvocatura di Stato filed an
appearance and submitted a counterclaim for the same sum. The case is subject to eligibility analysis by the
Court, which declared the inadmissibility of TIM's main claim (case for damages for manifest breach of
community law pursuant to law 117/88). However, this decision was amended in favor of the Company on
appeal. In March 2015 the Rome Court issued its judgment in the first instance, declaring the Company's
application inadmissible.
In 2015, TIM has appealed the decision, and the case is now pending the hearing specifying the nature of the
forms of order sought. The Court of Appeal has scheduled the hearing for closing arguments for April 2, 2019.
Thereafter, without any new procedural activities having taken place, the Court of Appeal incontrovertibly
deferred the hearing for closing arguments first to 2020 and then to 2021 (from when the terms for conclusion
and replies shall run, which will be followed shortly thereafter by the issue of the judgment). These deferrals
were followed by the latest, of January 15, 2021, scheduling the new hearing for January 25, 2022.
On the matters underlying the case, the following must be noted:
■
on the considered lack of jurisdiction of the Court of Rome (concerned by the judgment of the Court of
Rome appealed by TIM) to judge the liability of the Italian government for the work of senior magistrates
(in the case in point, the Council of State), which would have led to the declared inadmissibility of the claim
in accordance with Art. 5, law no. 117/1978 (old text) - the United Chambers of the Court of Cassation ruled
with judgment no. 14842 on June 7, 2018, confirming the jurisdiction of the Court of Rome and, therefore,
the correctness of TIM’s choice to base its lawsuit in the Court of Rome;
■
on the unlawful nature of the conduct of the Italian government – and, therefore, on the liability of the
State-Court in accordance with Law no. 117/1998 – once again, the EU Court of Justice has ruled, deciding
on the prejudicial matter raised by the Lazio TAR in other, connected proceedings, in its judgment given on
March 4, 2020 in C-34/19, stressing that TIM was not required to pay the charges demanded by the State
for 1998 and, therefore, confirming the clear violation by the Council of State of European Community law
(also because in clear conflict with the decision already given by the EU Court of Justice on February 21,
2008 in C-296/06, as, moreover, already ruled by the Court of Appeal of Rome, Chambers I, in Decree of
January 31, 2012, which sanctioned the procedural admissibility of TIM’s lawsuit);
■
on the matter of the right to repeat the charges paid for 1998 - the Court of Cassation ruled in its judgment
no. 18603 given on September 7, 2020, rejecting the appeal brought by the Presidency of the Council
against the judgment whereby the Court of Appeal of Rome had upheld the claim for compensation made
by Vodafone (payment of charges for 1998) for the same title in separate proceedings.
In short, the company paid the charges disputed in 1998; it promptly challenged the administrative provision
that had unfairly required said payment, before the administrative court; the administrative proceedings
before the Council of State concluded negatively in 2009 (despite the recalled opposite judgment of the
European Court of Justice); the civil proceedings of first instance concluded in March 2015 with a judgment of
rejection for grounds of admissibility (then solved in the sense indicated by the company with the referenced
judgment of Cassation in United Chambers no. 14842/18) and for more than 6 years after the first instance
judgment – going from deferral to deferral - the appeal judgment was not issued.
The company is examining the various scenarios and legal claims (national, European Community, etc.) that
could contribute towards defining the appeal dispute. It is considered, in fact, that the principles of the
reasonable duration of the trial, in accordance with subsection 2 of article 111 of the Constitution and in
accordance with article 6 of the European Convention on Human Rights, are violated by these events,
considering: (i) the year in which payment was made of the undue charges is 1998; (ii) the value of these
charges is approximately 529 million euros plus interest from that date; (iii) the very long trial process that did
not lead to an appeal ruling for years (the initiation of which is from the year 2015); (iv) the circumstance that
the legal matter appears to be readily able to be settled, as not one but two judgments have already been
given by the EU Court of Justice declaring payment of the charges to be incompatible with European
Community legislation (judgments that have currently been ignored by the national court).
As part of these analyses aimed at deciding the appeal, on January 25, 2021 the company filed a request with
the Court of Appeal in Rome to bring forward the hearing (postponed as mentioned to January 25, 2022). This
is to avoid the umpteenth adjournment of the case, which concerns the failure to comply with two inter-partes
decisions rendered in the matter by the EU Court of Justice for a manifest violation of European law by the
State-Judge. With a ruling on February 8, 2021, the Rome Court of Appeal (second section specializing in
corporate matters) deemed it could grant the request for an advance ruling, setting the hearing for November
30, 2021. On that date the case was taken to decision with the assignment of the legal terms for closing
statements and replies. By order of February 22, 2022, having acknowledged that one of its members had
chosen to abstain, the Board re-submitted the case, arranging for the deeds to be sent onto the President of
the Court of Appeal. On March 4, 2022, the case was reassigned to another judge. By judgment of March 31,
2022, the Board scheduled the hearing for December 1, 2022 for closing arguments. The Board deferred the
case to the hearing of January 19, 2023 for verbal discussion. Following the request made by the State
advocacy, the case was again deferred until March 9, 2023. At the hearing on December 13, 2023, the Board
granted the parties time to submit their closing statements and replies.
In its judgment no. 2320/2024 entered on April 3, 2024, the Court of Appeal of Rome upheld the claim brought
by the Company, thus overturning the judgment against TIM and ordering the Presidency of the Council of
Ministers to pay 528,711,476 euros, adjusted for inflation and plus the statutory interest accrued since the date
the appeal was files, with costs awarded to the Company in the amount of 550,000.00 euros plus ancillary
charges.
On October 14, 2024, the Presidency of the Council of Ministers served notice of the appeal to the Court of
Cassation. On November 19, 2024, the Presidency of the Council of Ministers filed a motion to stay the ruling in
the Rome Court of Appeals, which, at a hearing held on December 16, 2024, postponed the hearing to January
20, 2025. The Court of Appeals, in its order published on January 22, 2025, rejected the application of the
Presidency of the Council of Ministers for an injunction against the enforceable effects of the Court of Appeals’
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
516
ruling. The public hearing of the Presidency of the Council appeal before the Supreme Court has been set for
May 27, 2025.
Other assets/liabilities related to the sale of assets and shareholdings
As part of agreements for the sale of assets and companies, TIM S.p.A. has undertaken guarantees to
indemnify the buyers for liabilities mainly connected with legal, tax, social security, and labor law issues, for an
amount normally set as a percentage of the purchase price.
Against the aforementioned contingent liabilities, for only those cases in which an outlay of resources was
deemed probable, a corresponding provision was made for risks.
It should also be noted that under some asset and/or equity sale contracts signed by TIM S.p.A., there are usual
post-closing price adjustment mechanisms as well as earn-out mechanisms in favor of TIM.
(c) Commitments and guarantees
Personal guarantees provided, totaling 3,834 million euros, refer mainly to guarantee financing provided by TIM
on behalf of Subsidiaries (including 1,925 million euros for Telecom Italia Capital, 787 million euros for Telecom
Italia Finance, 198 million euros for Telecom Italia Sparkle, 197 million euros for Noovle, and 41 million euros for
Olivetti.
Significant purchase commitments outstanding at December 31, 2024 for long-term contracts forming part of
TIM S.p.A.’s business operations, totaling 1,071 million euros, mainly related to the commitments undertaken
by the Company for information technology services.
The guarantees provided by third parties to TIM companies, amounting to 3,154 million euros, refer for 1,721
million euros to the related to guarantees provided by banks and other financial institutions as a guarantee of
the proper performance of contractual obligations and for 1,433 million euros to insurance guarantees. In
particular, we report:
■
the insurance guarantees mainly refer to guarantee financing required of TIM in applying legal provisions
for contracts of Public Administrations and similar bodies;
■
TIM had bank guarantees issued in favor of INPS in support of the application – also for some Group
companies – of Article 4, paragraph 1, of Law no. 92 of June 28, 2012 and Article 41, paragraph 5bis, of
Legislative Decree no. 148/2015 for the voluntary redundancy of employees meeting the requirements; the
total amount of guarantees is 1,119 million euros (of which 1,053 million euros for TIM, 30 million euros for
Telecom Italia Sparkle, 18 million euros for Noovle and 9 million euros for Olivetti).
In particular, TIM Group had bank guarantees of 90 million euros issued by MPS in favor of INPS in support of
the application of Article 4 of Italian Law 92 of June 28, 2012, for the voluntary redundancy of employees
meeting the requirements. At the same time, on October 25, 2023, a pledge was established over government
bonds in favor of the guarantor bank – specifically, BTP 15/07/2028 – which TIM had borrowed from Telecom
Italia Finance S.A. on October 19, 2023. In accordance with IAS/IFRS accounting standards, the securities are
recorded only in the financial statements of Telecom Italia Finance S.A., which remains the holder of the risk
and benefits deriving from the position.
Furthermore, in May 2018, TIM issued a surety to the Prime Minister’s Office for 74 million euros to secure an
appeal to the Lazio Administration Court for a provisional stay of the administrative fine levied on TIM following
the preliminary investigation connected with the penalty proceeding initiated under Article 2 of Decree Law 21
of 3/15/2012 (the “Golden Power” law).
As of December 31, 2024, the undrawn portion of intercompany credit lines granted by TIM to subsidiaries
amounted to 115 million euros.
The loan guarantees are described in the Note 15 “Non-current and current financial liabilities”.
Separate financial
statements of
TIM S.p.A.
Note 24
Disputes and pending legal actions, other information, commitments
and guarantees
517
NOTE 25
REVENUES
These increased by 251 million euros compared to 2023. The breakdown is as follows:
(million euros)
2024
2023
Equipment sales
769
779
Services
8,449
8,188
Total
9,218
8,967
Revenues from services are mainly represented by voice and data services on fixed and mobile networks for
Retail customers amounting to 7,505 million euros (7,353 million euros in FY 2023) and for other Wholesale
operators amounting to 165 million euros (2,107 million euros in FY 2023).
Revenues are shown before fees to be paid to other operators amounting to 417 million euros (475 million
euros in fiscal year 2023), included in "Costs of services."
NOTE 26
OTHER INCOME
This item increased by 103 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Late payment fees charged for telephone services
19
23
Recovery of employee benefit expenses, purchases and services rendered
34
21
Capital and operating grants
15
12
Damages, penalties and recoveries connected with litigation
2
21
Estimate revisions and other adjustments
96
40
Income for special training activities
1
2
Services related to the MSA in place with FiberCop S.p.A.
42
—
Other
24
11
Total
233
130
Separate financial statements of
TIM S.p.A.
Note 25
Revenues
518
NOTE 27
PURCHASE OF RAW MATERIALS AND SERVICES
This item increased by 805 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Purchase of raw materials and goods
(a)
707
724
Costs of services
Revenues due to other TLC operators
417
475
Costs for telecommunications network access services
107
77
Commissions, sales commissions and other selling expenses
1,530
1,354
Advertising and promotion expenses
112
120
Professional and consulting services
85
100
Utilities
200
91
Maintenance costs
152
61
Outsourcing costs for other services
375
364
Mailing and delivery expenses for telephone bills, directories and other
materials to customers
26
26
Distribution and logistics
—
1
Travel and lodging costs
4
3
Insurance
15
13
Other service expenses
1,646
1,295
(b)
4,669
3,980
Lease and rental costs
Rent and leases
7
2
Other lease and rental costs
752
624
(c)
759
626
Total
(a+b+c)
6,135
5,330
In application of IFRS 16, leased asset costs mainly included rental fees for contracts relating to intangible
assets (752 million euros, mainly for software licenses).
The item Other service expenses mainly includes network access charges and hosting fees related to radio
base stations.
Separate financial statements of
TIM S.p.A.
Note 27
Purchases of raw materials and services
519
NOTE 28
EMPLOYEE BENEFITS EXPENSES
This item decreased by 442 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Ordinary employee expenses
Wages and salaries
545
605
Social security expenses
207
231
Employee Severance Indemnities
—
—
Other employee benefits
79
64
(a)
831
900
Costs and provisions for agency contract work
(b)
—
—
Miscellaneous expenses for employees and other labor-related services
rendered
Expenses for corporate restructuring and termination benefit incentives
68
448
Other
11
4
(c)
79
452
Total
(a+b+c)
910
1,352
“Ordinary employee expenses” decreased by 69 million euros, mainly due to the contraction of the average
salaried workforce by -1,783 units on average, partially offset by the lower impact caused by the reduction in
hours under the “Solidarity contract” signed on April 12, 2024 as compared to the prior Expansion agreement
signed in 2022 and terminated on February 28, 2024 (+847 average units compared to 2023).
“Expenses for corporate restructuring and termination benefit incentives” amounted to 68 million euros
(448 million euros in 2023) and are mainly related to wage supplementation related to Solidarity Agreements
and individual redundancy plans, as stipulated in the labor union agreement signed with the trade unions.
The average salaried workforce stood at 11,228 units at December 31, 2024 (12,164 at December 31, 2023). A
breakdown by category is as follows:
(number of units)
2024
2023
Executives
230
267
Middle Managers
2,082
1,962
White collars
8,916
9,935
Blue collars
—
—
Employees on payroll
11,228
12,164
Agency contract workers
—
—
Total headcount
11,228
12,164
As of December 31, 2024, the workforce numbered 12,951 (32,951 as of December 31, 2023), a decrease of
20,000, mainly due to the spin-off of NetCo.
Separate financial statements of
TIM S.p.A.
Note 28
Employee benefits expenses
520
NOTE 29
OTHER OPERATING EXPENSES
This item decreased by 133 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Write-downs and expenses in connection with credit management
92
104
Provision charges
36
56
TLC operating fees and charges
19
21
Indirect duties and taxes
28
25
Penalties, settlement compensation and administrative fines
9
24
Subscription dues and fees, donations, scholarships and traineeships
6
6
Sundry expenses
44
131
Total
234
367
of which, included in the supplementary disclosure on financial instruments
92
104
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
NOTE 30
CHANGE IN INVENTORIES
Was positive by 14 million euros (negative by 12 million euros as of December 31, 2023) and mainly attributable
to a trend of lower consumption on the Mobile segment.
In 2024, write-downs of inventories amounted to 4 million euros.
NOTE 31
INTERNALLY GENERATED ASSETS
They amounted to 144 million euros and decreased by 19 million euros compared to 2023. They consist solely
of tangible and intangible capitalizations on labor costs and specifically:
■
for 100 million euros (-16 million euros compared to 2023) relating to “intangible assets with a finite useful
life”, mainly relating to development of software and network solutions, applications and innovative
services;
■
for 44 million euros (-3 million euros compared to 2023) relating to the “tangible assets” connected with
design, construction and testing of network infrastructure and systems.
Separate financial statements of
TIM S.p.A.
Note 29
Other operating expenses
521
NOTE 32
DEPRECIATION AND AMORTIZATION
This item increased by 9 million euros compared to 2023. The figure breaks down as follows:
(million euros)
2024
2023
Amortization of intangible assets with a finite useful life
Industrial patents and intellectual property rights
640
650
Concessions, licenses, trademarks and similar rights
320
321
Other intangible assets
1
1
(a)
961
972
Depreciation of tangible assets owned
Buildings (civil and industrial)
1
1
Plant and equipment
451
476
Manufacturing and distribution equipment
—
—
Other
42
44
(b)
494
521
Amortization of rights of use assets
Rights of use Concessions, Licenses, Trademarks and Similar Rights
—
—
Property
40
34
Plant and equipment
146
106
Other
6
5
(c)
192
145
Total
(a+b+c)
1,647
1,638
For further details refer to Note 4 "Intangible assets with a finite useful life", Note 5 "Tangible assets" and Note
6 "Rights of use assets".
Separate financial statements of
TIM S.p.A.
Note 32
Depreciation and amortization
522
NOTE 33
GAINS/(LOSSES) ON DISPOSALS OF NON-
CURRENT ASSETS
This item was broken down as follows:
(million euros)
2024
2023
Gains on disposals of non-current assets
Gains on the retirement/disposal of intangible, tangible and rights of use
assets
4
3
(a)
4
3
Losses on disposals of non-current assets
Losses on the retirement/disposal of intangible, tangible and rights of use
assets
11
20
(b)
11
20
Total
(a-b)
(7)
(17)
NOTE 34
IMPAIRMENT REVERSALS (LOSSES) ON NON-
CURRENT ASSETS
The item was negative by 14 million euros (almost zero in 2023) due to the write-down of the residual value of
certain network asset components related to work in progress ("plant inventory").
In accordance with IAS 36, goodwill is not subject to amortization, but is tested for impairment on at least an
annual basis, when preparing the company’s separate financial statements.
Further details are provided in the Note 3 "Goodwill".
Separate financial statements of
TIM S.p.A.
Note 33
Gains/(losses) on disposals of non-current assets
523
NOTE 35
INCOME (EXPENSES) FROM INVESTMENTS
Details are as follows:
(million euros)
2024
2023
Dividends
15
1,087
Net gains on disposals of investments
26
—
Other income from investments
—
—
Capital losses and impairment losses on financial assets
(311)
(176)
Sundry expenses from investments
—
—
Total
(270)
911
of which, included in the supplementary disclosure on financial instruments
2
2
Further details on Financial Instruments are provided in Note 19 "Supplementary disclosures on financial
instruments".
In particular, we report:
■
Dividends related to the companies Daphne 3 S.p.A. (11 million euros) and Fin. Priv. S.r.l. (2 million euros)
and to the subsidiary Telecom Italia S. Marino (2 million euros). In 2023, dividends mainly related to the
subsidiaries Telecom Italia Finance S.A. (988 million euros) and FiberCop S.p.A. (84 million euros) and to
associate company Daphne 3 S.p.A. (12 million euros).
■
The net capital gain on disposal of investments related to the sale of investments in associates Daphne 3
S.p.A. (16 million euros), Nordcom S.p.A. (6 million euros) and Italtel S.p.A. (4 million euros). In 2023, this
item was nil.
■
Capital losses and reductions in the value of financial assets refer to the write-down of investments in the
subsidiaries Telecom Italia Sparkle S.p.A. and Olivetti S.p.A. Società Benefit. With regard to Telecom Italia
Sparkle S.p.A., it should be noted that on February 12, 2025, the Directors of TIM S.p.A. accepted the
binding offer for the sale of the entire stake (100%) held in Telecom Italia Sparkle. Therefore, in the 2024
Financial Statements, in addition to fully incorporating the loss for 2024 reported by the Telecom Italia
Sparkle group (70 million euros), the recoverability of the value of the investment was verified in
accordance with the offer, and an additional write-down of 230 million euros was recorded. With regard to
Olivetti S.p.A. Società Benefit, a write-down of 11 million euros was recognized.
In 2023, capital losses and impairments related to: the impairment (144 million euros) of the investments in
subsidiaries Telecom Italia Sparkle S.p.A. and Olivetti S.p.A. Società Benefit and in associate Italtel S.p.A;
provisions for investment-related expenses concerning subsidiaries Olivetti S.p.A. Società Benefit and TI
Latam Participações e Gestão Administrativa Ltda (12 million euros); and the disposal of the investment in
Tim Servizi Digitali S.p.A. (20 million euros).
Separate financial statements of
TIM S.p.A.
Note 35
Income/(expense) from investments
524
NOTE 36
FINANCE INCOME AND EXPENSES
Finance income (expenses) showed a net expense of 937 million euros, which breaks down as follows:
(million euros)
2024
2023
Finance income
1,003
997
Finance expenses
1,940
2,066
Total net finance income (expenses)
(937)
(1,069)
The items break down as follows:
(million euros)
2024
2023
Interest expenses and other finance expenses
Interest expenses and other costs relating to bonds
(353)
(462)
Interest expenses relating to subsidiaries
(305)
(363)
Interest expenses relating to associates
—
—
Interest expenses to banks
(198)
(255)
Finance expenses on lease liabilities
(39)
(39)
Interest expenses to others
(22)
(11)
(917)
(1,130)
Commissions
(59)
(45)
Other finance expenses (*)
(155)
(109)
(214)
(154)
Interest income and other finance income:
Interest income
11
7
Interest income from subsidiaries
26
17
Interest income from associates
—
—
Income from financial receivables, recorded in Non-current assets
5
1
Income from financial receivables from subsidiaries, recorded in Non-current
assets
116
164
,
assets
—
—
,
assets
—
—
,
(*)
5
5
Miscellaneous finance income
22
24
185
218
Total net finance interest/(expenses)
(a)
(946)
(1,066)
Other components of finance income and expenses:
Net exchange gains and losses
3
(1)
Net result from derivatives
3
(14)
Net fair value adjustments to fair value hedge derivatives and underlying
instruments
—
—
Net fair value adjustments to non-hedging derivatives
3
12
Total other components of finance income and expenses:
(b)
9
(3)
Total net finance income (expenses)
(c)=(a+b)
(937)
(1,069)
of which, included in the supplementary disclosure on financial instruments
(919)
(1,040)
(*) of which IFRS9 impact, nil on 2024 and 2023.
Further details on financial instruments are provided in Note 19 "Supplementary disclosure on financial
instruments".
Separate financial statements of
TIM S.p.A.
Note 36
Finance income and expenses
525
For greater clarity of presentation, the net effects relating to derivative financial instruments are summarized
in the following table:
(million euros)
2024
2023
Foreign currency conversion gains
54
47
Exchange losses
(51)
(48)
Net exchange gains and losses
3
(1)
Income from fair value hedge derivatives
—
—
Charges from fair value hedge derivatives
—
—
Net result from fair value hedge derivatives
(a)
—
—
Positive effect of the reversal of the Reserve of cash flow hedge
derivatives to the income statement (interest rate component)
101
166
Negative effect of the reversal of the Reserve of cash flow hedge
derivatives to the income statement (interest rate component)
(98)
(154)
Net effect of the Reversal of the Reserve of cash flow hedge derivatives
to the income statement (interest rate component)
(b)
3
12
Income from non-hedging derivatives
361
410
Charges from non-hedging derivatives
(361)
(436)
Net result from non-hedging derivatives
(c)
—
(26)
Net result from derivatives
(a+b+c)
3
(14)
Positive fair value adjustments to fair value hedge derivatives
—
—
Negative fair value adjustments relating to financial assets and liabilities
underlying fair value hedge derivatives
—
—
Net fair value adjustments
(d)
—
—
Positive fair value adjustments to Underlying financial assets and liabilities
of fair value hedge derivatives
—
—
Negative fair value adjustments relating to fair value hedge derivatives
—
—
Net fair value adjustments
(e)
—
—
Net fair value adjustments to fair value hedge derivatives and
underlying instruments
(d+e)
—
—
Positive fair value adjustments to non-hedging derivatives
(f)
302
156
Negative fair value adjustments to non-hedging derivatives
(g)
(299)
(144)
Net fair value adjustments to non-hedging derivatives
(f+g)
3
12
Separate financial statements of
TIM S.p.A.
Note 36
Finance income and expenses
526
NOTE 37
RELATED-PARTY TRANSACTIONS
The following tables show the balances relating to related-party transactions and the impact of those amounts on the
separate income statement, statement of financial position and statement of cash flows of TIM S.p.A..
Pursuant to Art. 5, paragraphs 8 and 9, of Consob Regulation no. 17221 of March 12, 2010 concerning "Related-party
transactions" and subsequent amendments, in the 2024 financial year there are no transactions of greater
importance, as defined by the Art. 4, paragraph 1, letter. a) of the aforementioned regulation which have significantly
influenced the financial situation or results of TIM S.p.A..
In addition, there were no transactions concluded in 2024 that significantly impacted the equity position or results of
TIM S.p.A., nor were there any changes or developments with respect to the related-party transactions described in the
2023 Report on Operations which had a significant effect on the financial position or on the performance of TIM S.p.A.
in 2024.
It should also be noted that on October 4, 2024, at the same time as receiving the first non-binding offer for the
purchase of Telecom Italia Sparkle S.p.A., the Board of Directors identified the Ministry of Economy and Finance (MEF)
as a related party of TIM S.p.A.. For the purpose of the 2024 financial statements, as required by IAS 24 paragraph 26, a
qualitative analysis was carried out on existing relationships with MEF subsidiaries. This analysis showed that these
relationships are mainly related to purchases of goods and services (energy, transportation, postal services) that are
conducted at normal market conditions.
Related-party transactions, when not dictated by specific laws, were conducted at arm’s length. They were performed
in compliance with the internal procedure, which sets forth rules designed to ensure the transparency and fairness of
the transactions in accordance with Consob Regulation 17221/2010. The current procedure is available on the website
gruppotim.it, under the Group - Governance - Governance Tools - Other Codes and Procedures section.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
527
The effects of related-party transactions on the line items of the separate income statements for 2024 and 2023 are as
follows:
SEPARATE INCOME STATEMENT LINE ITEMS 2024
(million euros)
Total
Related Parties
Subsidiarie
s
Associates,
subsidiaries of
associates and
joint ventures
Other
related
parties (*)
Pension
funds
Key managers
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Revenues
9,218
835
155
79
—
—
1,069
677
392
4.3
Other income
233
46
1
—
—
—
47
11
36
15.5
Acquisition of goods and
services
6,135
1,772
7
59
—
—
1,838
456
1,382
22.5
Employee benefits expenses
910
9
—
—
45
14
68
17
51
5.6
Other operating expenses
234
4
—
—
—
—
4
4
—
—
Depreciation and
amortization
1,647
9
—
—
—
—
9
4
5
0.3
Gains/losses on disposals of
non-current assets
(7)
—
—
—
—
—
—
—
—
—
Income (expenses) from
investments
(270)
2
11
—
—
—
13
—
13
(4.8)
Finance income
1,003
485
—
1
—
—
486
—
486
48.5
Finance expenses
1,940
670
4
—
—
—
674
—
674
34.7
Profit/(loss) from
Discontinued operations /
Non-current assets held for
sale
(666)
248
—
1
(17)
—
232
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti Group and its subsidiaries; Ministry of Economy and
Finance (MEF); other related parties through Directors, Statutory Auditors and Key Managers.
SEPARATE INCOME STATEMENT LINE ITEMS 2023
(million euros)
Total
Related Parties
Subsidiarie
s
Associates,
subsidiaries of
associates and
joint ventures
Other
related
parties (*)
Pension
funds
Key managers
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Revenues
8,967
1,562
38
118
—
—
1,718
1,479
239
2.7
Other income
130
46
1
—
—
—
47
21
26
20.0
Acquisition of goods and
services
5,330
2,495
43
66
—
—
2,604
952
1,652
31.0
Employee benefits expenses
1,352
7
—
—
64
16
87
38
49
3.6
Other operating expenses
367
2
—
—
—
—
2
2
—
—
Depreciation and
amortization
1,638
15
—
—
—
—
15
11
4
0.2
Gains/losses on disposals of
non-current assets
(17)
—
—
—
—
—
—
—
—
—
Income (expenses) from
investments
911
1,073
12
—
—
—
1,085
—
1,085
119.1
Finance income
997
528
—
1
—
—
529
—
529
53.1
Finance expenses
2,066
642
4
—
—
—
646
—
646
31.3
Profit/(loss) from
Discontinued operations /
Non-current assets held for
sale
(1,427)
445
(1)
87
(35)
—
496
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti Group and its subsidiaries; other related parties through
Directors, Statutory Auditors and Key Managers.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
528
The effects of related-party transactions on the line items of the statements of financial position as at December 31,
2024 and December 31, 2023 are as follows:
STATEMENT OF FINANCIAL POSITION LINE ITEMS AT DECEMBER 31, 2024
(million euros)
Total
Related Parties
Subsidiarie
s
Associates,
subsidiaries of
associates and
joint ventures
Other
related
parties (*)
Pension
funds
Total related
parties
% of financial
statement item
(a)
(b)
(b/a)
NET FINANCIAL DEBT
Non-current financial assets
1,593
1,115
—
—
—
1,115
70.0
of which: Non-current financial
assets for lease contracts
14
9
—
—
—
9
64.3
Securities other than
investments (current assets)
—
—
—
—
—
—
—
Financial receivables and other
current financial assets
472
414
—
24
—
438
92.8
of which: Current financial assets
for lease contracts
26
2
—
24
—
26
100.0
Cash and cash equivalents
820
87
—
—
—
87
10.6
Current financial assets
1,292
501
—
24
—
525
40.6
Non-current financial liabilities
8,009
2,455
—
—
—
2,455
30.7
of which: Non-current financial
liabilities for lease contracts
644
16
—
—
—
16
2.5
Current financial liabilities
5,056
1,620
1
—
—
1,621
32.1
of which: Current financial
liabilities for lease contracts
231
4
—
—
—
4
1.7
Total net financial debt
10,180
2,459
1
(24)
—
2,436
23.9
OTHER STATEMENT OF
FINANCIAL POSITION LINE
ITEMS
Rights of use assets
1,513
19
—
—
—
19
1.3
Miscellaneous receivables and
other non-current assets
1,552
155
—
—
—
155
10.0
Trade and miscellaneous
receivables and other current
assets
3,139
304
186
9
—
499
15.9
Miscellaneous payables and
other non-current liabilities
699
1
—
—
—
1
0.1
Trade and miscellaneous
payables and other current
liabilities
5,281
437
6
14
9
466
8.8
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti Group and its subsidiaries; Ministry of Economy and
Finance (MEF); other related parties through Directors, Statutory Auditors and Key Managers.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
529
STATEMENT OF FINANCIAL POSITION LINE ITEMS AT DECEMBER 31, 2023
(million euros)
Total
Related Parties
Subsidiarie
s
Associates,
subsidiaries of
associates and
joint ventures
Other
related
parties (*)
Pension
funds
Total related
parties
% of financial
statement item
(a)
(b)
(b/a)
NET FINANCIAL DEBT
Non-current financial assets
3,892
3,121
—
1
—
3,122
80.2
of which: Non-current financial
assets for lease contracts
6
—
—
1
—
1
16.7
Securities other than
investments (current assets)
—
—
—
—
—
—
—
Financial receivables and other
current financial assets
1,100
463
—
1
—
464
42.2
of which: Current financial assets
for lease contracts
68
1
—
1
—
2
2.9
Cash and cash equivalents
598
38
—
—
—
38
6.4
Current financial assets
1,698
501
—
1
—
502
29.6
Non-current financial liabilities
20,804
4,641
—
—
—
4,641
22.3
of which: Non-current financial
liabilities for lease contracts
2,710
21
—
—
—
21
0.8
Current financial liabilities
6,450
1,930
2
—
—
1,932
30.0
of which: Current financial
liabilities for lease contracts
467
38
—
—
—
38
8.1
Total net financial debt
21,664
2,949
2
(2)
—
2,949
13.6
OTHER STATEMENT OF
FINANCIAL POSITION LINE
ITEMS
Rights of use assets
3,271
152
—
2
—
154
4.7
Miscellaneous receivables and
other non-current assets
1,795
300
2
—
—
302
16.8
Trade and miscellaneous
receivables and other current
assets
4,561
1,251
48
25
—
1,324
29.0
Miscellaneous payables and
other non-current liabilities
1,048
14
—
18
—
32
3.1
Trade and miscellaneous
payables and other current
liabilities
7,785
809
15
32
20
876
11.3
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti Group and its subsidiaries; other related parties through
Directors, Statutory Auditors and Key Managers.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
530
The effects of related-party transactions on the significant line items of the statements of cash flows for 2024 and
2023 are as follows:
STATEMENT OF CASH FLOWS LINE ITEMS 2024
(million euros)
Total
Related Parties
Subsidiaries
Associates,
subsidiaries of
associates
and joint
ventures
Other
related
parties (*)
Pension
funds
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Purchase of intangible, tangible
and rights of use assets on an
accrual basis
1,235
24
—
12
—
36
—
36
2.9
Dividends paid
—
—
—
—
—
—
—
—
—
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti Group and its subsidiaries; Ministry of Economy and
Finance (MEF); other related parties through Directors, Statutory Auditors and Key Managers.
STATEMENT OF CASH FLOWS LINE ITEMS 2023
(million euros)
Total
Related Parties
Subsidiaries
Associates,
subsidiaries of
associates
and joint
ventures
Other
related
parties (*)
Pension
funds
Total
related
parties
Discontinued
Operations
relationships
Total
related
parties net
of Disc.Op.
% of
financial
statement
item
(a)
(b)
(b/a)
Purchase of intangible, tangible
and rights of use assets on an
accrual basis
1,190
25
37
1
—
63
—
63
5.3
Dividends paid
—
—
—
—
—
—
—
—
—
(*) Vivendi Group and companies belonging to the group that it belongs to; Cassa Depositi e Prestiti Group and its subsidiaries; other related parties through
Directors, Statutory Auditors and Key Managers.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
531
Transactions with subsidiaries
The major values in the transactions with subsidiaries are summarized in the following tables.
It should be noted that TIM S.p.A. sold its controlling stakes in FiberCop S.p.A. and Telenergia S.r.l. as part of the NetCo
transaction on July 1, 2024, the date on which these companies ceased to be related parties; therefore, at December
31, 2024 the financial position line items concerning the company are zero, and the income statement line items for
the 2024 financial year reflect the transactions carried out up to the date of sale.
SEPARATE INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
Type of contract
Revenues
FiberCop S.p.A.
661
1,360 Commissioned construction of secondary copper and fiber
network
developments;
ordinary
and
extraordinary
maintenance services on the secondary copper and fiber
network; administrative services related to the IRU
acquisition and transfer of secondary access network
installation infrastructure; provision of Erp, separation,
Desktop Management, TSA, SDI-AM services; voice services
TIM Retail S.r.l.
69
80 Supply of products intended for public sale; voice services,
data transmission, MPLS connectivity, advanced hosting
and ICT services for corporate use; property leases
Telecom Italia Sparkle S.p.A.
33
41 Customized voice and data transmission services, services
relating to the interconnection between Telecom Italia
Sparkle and TIM communications networks with particular
reference to accesses and international traffic, dual IMSI
services,
sale
of
IRU
dark
fiber
and
installation
infrastructures, property leasing and facility services, Oracle
software maintenance, royalties
TIM S.A.
29
31 Roaming services; assistance and provision of licenses in the
field of network, information technology, marketing & sales
activities; Royalties Trademark License Agreement
Noovle S.p.A. Società Benefit
26
27 Voice services, supply of ICT products, real estate and
operating services, facility services, security services
Olivetti S.p.A. Società Benefit
5
5 Fixed and mobile telephony services and equipment sales,
MPLS and fiber connectivity services for the national data
network,
property
leases,
HP
system
hardware
maintenance, dimensional upgrade of the APN Shared
platform, functional evolution of the Capillary Network and
Capnet platform for provisioning and managing equipment
Telecontact Center S.p.A.
3
4 Lease of properties and facility management services,
supply of fixed and mobile network and IP connectivity
telecommunications products and services, security services
Telecom Italia Trust
Technologies S.r.l.
2
3 Voice services, management and supply of ICT Security &
Risk Management services, property leasing, Spid activation
service
Telsy S.p.A.
3
3 Fixed and mobile telephony services and supply of products
and licenses, property leases and facility management
services
TIM Servizi Digitali S.p.A.
—
3 Fixed and mobile telephony services, sale of materials to be
used to develop the FTTH network
Telenergia S.r.l.
1
2 Outsourcing for company business, supply of operative
assistance services
Telecom Italia S.Marino S.p.A.
2
2 Connection
and
telecommunications
services
(interconnection contracts for the sale of data services such
as bitstream; IRU transfer of dark fiber connections and
installation infrastructures; ULL; Shared Access; DSLAM
devices; SUBLOOP FTTC), voice services and equipment
l
Telefonia Mobile Sammarinese
S.p.A.
1
1 Mobile voice services and equipment sales
Total revenues
835
1,562
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
532
(million euros)
2024
2023
Type of contract
Other income
Noovle S.p.A. Società Benefit
35
34 Recovery of seconded personnel costs, refunds of costs of
centralized services, other income
Telecom Italia Sparkle S.p.A.
2
2 Refunds of costs for centralized services, other income
FiberCop S.p.A.
3
2 Fees for corporate office, penalties
Telecontact Center S.p.A.
2
2 Refunds of costs for centralized services, other income
TIM Servizi Digitali S.p.A.
—
1 Penalties for contractual breaches, recovery of seconded
personnel costs, other income
TIM Retail S.r.l.
1
1 Recovery of seconded personnel costs, other income
Olivetti S.p.A. Società Benefit
1
1 Recovery of seconded personnel costs, refunds of costs of
centralized services, other income
Other minor companies
2
3
Total other income
46
46
Acquisition of goods and
services
FiberCop S.p.A.
591
1,191 Fee for use of the secondary access network for the
provision of copper and fiber access services to Operators;
costs for failure to achieve the Special Commitment
2021-23 required under the MSA; travel costs
Noovle S.p.A. Società Benefit
501
421 Minimum
commitment
fee
for
operating
services;
professional IT services; customized services by TIM to end
customers; supply of ICT products; colocation service for
security and judiciary systems in Noovle data centers; GCP
use, professional services, Azure use, on-premise services;
cloud use on Google, Azure and Amazon Web Services
consoles; infrastructure costs for the Tim Cloud and Consip
project; Google license reselling (G Suite); colocation service
on Noovle data center, revenue-share payment as part of
offers to TIM end customers
Telenergia S.r.l.
140
354 Electricity supply
Telecom Italia Sparkle S.p.A.
152
167 Portion to be paid for telecommunications services and
interconnection
costs,
telephone
services,
data
transmission; maintenance of undersea cables
TIM Retail S.r.l.
110
117 Services for acquisition of new customers, information
activities and post-sales support for TIM customers,
activities for the promotion of TIM's image and distinctive
brands through point-of-sale windows
Telsy S.p.A.
139
77 Customized services and purchase of products for resale
and lease as part of TIM offerings for end customers; ICT
security solutions and services; maintenance services and
software licenses; services for the National Strategic Hub
and for participating User Administrations
Telecontact Center S.p.A.
58
63 Customer care services for TIM customers and public
administration; call-center and back office services related
with technical and commercial public telephone front end
data management
Olivetti S.p.A. Società Benefit
45
44 Cloud printing service; customized services and purchase of
products for resale and lease as part of TIM offerings for end
customers; ICT services; supply, installation and assistance
of ICT products; after-sales assistance as part of TIM offers
for end customers; development upgrades of projects and
platforms; licenses for use of software platforms, software
upgrades;
Cloud
enabling
services
for
Public
Administrations; end-to-end solutions on the Jasper and
intermediate platform by TIM under the contract for the
development, management and commercialization of
Machine to Machine and Internet of Things services; services
for the National Strategic Hub and for participating User
Administrations
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
533
Telecom Italia Trust
Technologies S.r.l.
31
29 Certification Authority service for TIM and as part of offers
to TIM end customers; regulation-compliant storage of PECs
from
TIM's
institutional
mailbox;
management
and
substitute storage services for administrative-accounting
documentation; Digital Identity management services
through the SPID platform; cloud computing, security
services,
website
creation
and
online
services
and
application cooperation for public administrations; payment
prompting services to TIM customers; digital signature
certificates; services for the National Strategic Hub and for
participating User Administrations
Tim Servizi Digitali S.p.A.
—
28 Tender contract for network works (assurance activities,
delivery, network construction)
TIM S.A.
2
2 Roaming services
Staer Sistemi S.r.l.
—
1 Services for the National Strategic Hub and for participating
User
Administrations
application
management
and
database monitoring and protection platform
Other minor companies
3
1
Total acquisition of goods and
services
1,772
2,495
Employee benefits expenses
9
7 Costs to Noovle, Telecontact and Olivetti for seconded
l
Other operating expenses
4
2 Costs for penalties to FiberCop S.p.A. and operating costs
for guarantees of origin to Telenergia S.r.l.
Amortization of rights of use
assets
FiberCop S.p.A.
5
11 Amortization of rights of use for secondary access network
installation
infrastructures
(underground
and
aerial),
acquired in IRU for the sale for exclusive use of the same
infrastructures to Operators
Noovle S.p.A. Società Benefit
4
4 Amortization of rights of use on buildings
Total amortization of rights of
use assets
9
15
Income (expenses) from
investments
Telecom Italia Finance S.A.
—
988 Dividends
FiberCop S.p.A.
—
84 Dividends
Telecom Italia S.Marino S.p.A.
2
1 Dividends
Total income (expenses) from
investments
2
1,073
Finance income
Telecom Italia Capital S.A.
298
281 Income from derivatives
FiberCop S.p.A.
83
142 Interest
income
on
financial
receivables,
financial
commission income
Telecom Italia Finance S.A.
33
43 Income from securities, income from derivatives
Noovle S.p.A. Società Benefit
44
40 Interest income on financial receivables
Telecom Italia Sparkle S.p.A.
23
16 Interest income on financial receivables
Telenergia S.r.l.
1
3 Interest
income
on
financial
receivables,
financial
commission income
Telsy S.p.A.
2
2 Interest income on financial receivables
Other minor companies
1
1
Total finance income
485
528
Finance expenses
Telecom Italia Capital S.A.
478
419 Interest expense on financial payables, charges on
derivatives
Telecom Italia Finance S.A.
191
222 Interest expense on financial payables, charges on
derivatives
Noovle S.p.A. Società Benefit
1
— Interest expense associated with rights of use on buildings
Other minor companies
—
1
Total finance expenses
670
642
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
534
STATEMENT OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
Type of contract
Net financial debt
Non-current financial assets
FiberCop S.p.A.
—
2,080 Loan
Noovle S.p.A. Società Benefit
892
884 Financing and lease contracts
Telecom Italia Finance S.A.
72
73 Derivative assets
Telecom Italia Sparkle S.p.A.
111
60 Loan
Telsy S.p.A.
39
24 Loan
Other minor companies
1
—
Total non-current financial
assets
1,115
3,121
Financial receivables and
other current financial assets
Telecom Italia Sparkle S.p.A.
387
358 Short-term financial receivables
Telecom Italia Finance S.A.
2
54 Derivative assets
Telecom Italia Capital S.A.
15
29 Derivative assets
Telsy S.p.A.
—
12 Short-term financial receivables
Staer Sistemi S.r.l.
—
4 Short-term financial receivables
Noovle S.p.A. Società Benefit
5
4 Short-term financial receivables and receivables from lease
contracts
Olivetti S.p.A. Società Benefit
5
— Short-term financial receivables
FiberCop S.p.A.
—
1 Short-term financial receivables
Other minor companies
—
1
Total financial receivables
and other current financial
assets
414
463
Cash and cash equivalents
Treasury current accounts
Noovle S.p.A. Società Benefit
87
28
Telenergia S.r.l.
—
10
Total Cash and cash
equivalents
87
38
Non-current financial
liabilities
Telecom Italia Capital S.A.
1,633
3,429 Hedging derivatives and financial payables
Telecom Italia Finance S.A.
806
1,191 Hedging derivatives and financial payables
Noovle S.p.A. Società Benefit
16
21 Non-current financial liabilities related to the recognition of
rights of use for building lease liabilities
Total Non-current financial
liabilities
2,455
4,641
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
535
(million euros)
12/31/2024
12/31/2023
Type of contract
Current financial liabilities
Telecom Italia Finance S.A.
898
1,147 Financial payables, payables for current accounts, derivative
liabilities
Telecom Italia Capital S.A.
443
485 Hedging derivatives, derivative liabilities
TIM Retail S.r.l.
66
65 Payables for current account transactions
Telecom Italia Ventures S.r.l.
61
57 Payables for current account transactions
Telecom Italia Sparkle S.p.A.
61
52 Payables for current account transactions
Telecontact Center S.p.A.
36
44 Payables for current account transactions
FiberCop S.p.A.
—
36 Payables for current account transactions and financial
liabilities connected with rights of use
Olivetti S.p.A. Società Benefit
7
12 Payables for current account transactions
Telecom Italia Trust
Technologies S.r.l.
15
11 Payables for current account transactions
TIM My Broker S.r.l.
12
9 Payables for current account transactions
Telsy S.p.A.
17
8 Payables for current account transactions
Noovle S.p.A. Società Benefit
4
4 Financial rights of use liabilities
Tim Servizi Digitali S.p.A.
—
— Payables for current account transactions
Total Current financial liabilities
1,620
1,930
Other statement of financial
position line items
Rights of use assets
FiberCop S.p.A.
—
128 Rights of use for secondary access network installation
infrastructures (underground and aerial), acquired in IRU for
the sale for exclusive use of the same infrastructures to
Operators
Noovle S.p.A. Società Benefit
19
24 Rights of use on buildings
Total rights of use assets
19
152
Miscellaneous receivables and
other non-current assets
155
300 Deferred contractual and other deferred costs mainly for
transactions with Telecontact (customer care services) and
TIM
Retail
(new
activations),
receivables
for
tax
consolidation
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
536
(million euros)
12/31/2024
12/31/2023
Type of contract
Trade and miscellaneous
receivables and other current
assets
FiberCop S.p.A.
—
944 Carrying
out
of
works
on
behalf
of
FiberCop
on
developments of secondary copper and fiber network,
ordinary and extraordinary maintenance services on the
secondary copper and fiber network, fee income for
administrative services connected with the IRU transfer and
acquisition of secondary access network installation
infrastructures,
supply
of
ERP,
separation,
desktop
management, TSA, SDI-AM and voice services; Receivables
for tax consolidation
Noovle S.p.A. Società Benefit
155
160 Trade receivables for voice services, supply of ICT products,
property and operating services, facility services, security
services, recovery of seconded personnel costs, refunds of
centralized services; Deferred costs
TIM Retail S.r.l.
63
53 Trade receivables for supply of products for sale to the
public, voice and data transmission services, MPLS
connectivity, advanced hosting and ICT services for
company use, property leasing; Deferred contract costs;
Receivables for tax consolidation
TIM S.A.
24
26 Roaming services, license support and provision as part of
network operations, information technology, marketing &
sales, Royalties Trademark License Agreement
Telecontact Center S.p.A.
21
25 Trade receivables for lease of properties and facility
management services, supply of fixed and mobile network
and IP connectivity telecommunications products and
services, security services Deferred contract costs
Telecom Italia Sparkle S.p.A.
16
15 Customized voice and data transmission services, services
relating to the interconnection between Telecom Italia
Sparkle and TIM communications networks with particular
reference to accesses and international traffic, sale of IRU
dark fiber and installation infrastructures, property leasing
and facility services, Oracle software maintenance, royalties
Telsy S.p.A.
12
11 Deferred costs; Trade receivables for the provision of
equipment and licenses, as part of TIM offerings to end
customers, property leases and facility management
services
Olivetti S.p.A. Società Benefit
6
5 Fixed and mobile telephony services and equipment sales,
MPLS and fiber connectivity services for the national data
network,
property
leases,
HP
system
hardware
maintenance, dimensional upgrade of the APN Shared
platform, functional evolution of the Capillary Network and
Capnet platform for provisioning and managing equipment
Telenergia S.r.l.
—
4 Outsourcing for company business, supply of operative
assistance services; Receivable for tax consolidation
Telecom Italia Trust
Technologies S.r.l.
4
4 Trade
receivables
for
voice
outsourcing
services,
management and supply of ICT Security & Risk Management
services,
property
leasing,
Spid
activation
service,
administrative outsourcing; Deferred costs
Telecom Italia Capital S.A.
1
1 Commission on the provision of surety
Telecom Italia S.Marino S.p.A.
1
1 Connection
and
telecommunications
services
(interconnection contracts for the sale of data services such
as bitstream; IRU transfer of dark fiber connections and
installation infrastructures; ULL; Shared Access; DSLAM
devices; SUBLOOP FTTC), voice services and equipment
sales
Telecom Italia Finance S.A.
—
— Commission on the provision of surety
Other minor companies
1
2
Total trade and miscellaneous
receivables and other current
assets
304
1,251
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
537
Miscellaneous payables and
other non-current liabilities
Telecom Italia Sparkle S.p.A.
1
7 Deferred revenues from interconnection contracts, payables
for tax consolidation
Noovle S.p.A. Società Benefit
—
5 Payables for tax consolidation
Olivetti S.p.A. Società Benefit
—
1 Payables for tax consolidation
Telecom Italia S.Marino S.p.A.
—
1 Deferred revenues for connection and telecommunications
services contracts
Total miscellaneous payables
and other non-current liabilities
1
14
Trade and miscellaneous
payables and other current
liabilities
FiberCop S.p.A.
—
368 Trade payables for the use of the secondary access network
for the provision of copper and fiber access services to
Operators, for failure to achieve the Special Commitment
2021-23 required under the MSA, travel costs; VAT and tax
consolidation payables
Noovle S.p.A. Società Benefit
239
147 Trade payables for operating service minimum commitment
charge, customized TIM offer services to end customers,
supply of ICT products, colocation service of security and
judiciary systems in Noovle data center, GCP consumptions,
professional services, Azure consumptions, on-premise
services; cloud use on Google, Azure and Amazon Web
Services consoles, infrastructure costs for the Tim Cloud and
Consip project, reselling of Google licenses (G Suite);
colocation services on Noovle data center, revenue-share
payment as part of offers to TIM end customers; payables
for tax consolidation
Telenergia S.r.l.
—
92 Trade payables for electricity supply; VAT payables
Telecom Italia Sparkle S.p.A.
59
64 Trade
payables
for
the
portion
to
be
paid
for
telecommunications services and interconnection costs,
telephone services, data transmission and maintenance of
undersea cables; payables for tax consolidation
Telsy S.p.A.
47
50 Customized services and purchase of products for resale and
rental as part of TIM offerings to end customers, ICT
solutions and security services for TIM, maintenance services
and software licenses, services for the National Strategic
Hub and for participating User Administrations
TIM Retail S.r.l.
34
33 Trade payables for services for acquisition of new
customers, information activities and post-sales support for
TIM customers, activities for the promotion of TIM's image
and distinctive brands through point-of-sale windows; tax
consolidation payable
Olivetti S.p.A. Società Benefit
23
27 Trade payables for cloud printing service, customized
services and purchase of products for resale and hire as part
of TIM offerings to end customers, purchase of IT services,
ICT product supply, installation and assistance, after-sales
support, as part of TIM offerings to end customers,
evolutionary developments of projects and platforms,
software platform licenses, software developments, cloud
enabling services for public administrations, end-to-end
solutions on Jasper platform and intermediated by TIM,
under the scope of the contract for the development,
management and marketing of machine to machine
services and Internet of Things; services for the National
Strategic Hub and for participating User Administrations
Telecom Italia Trust
Technologies S.r.l.
14
14 Certification authority service for TIM and within the TIM
customer offering, archiving service according to certified
email rules for the TIM Certified Electronic Mail box,
administrative and accounting documentation services,
digital identity management services by means of SPID
platform, cloud computing services, security services,
creation of portals and online services and application
cooperation for public administrations; services for payment
prompting to TIM customers, digital signature certificates,
services for the National Strategic Hub and for participating
User Administrations
(million euros)
12/31/2024
12/31/2023
Type of contract
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
538
Telecontact Center S.p.A.
14
11 Trade payables for Customer Care services for TIM
customers and public administration, call-center and back
office services related with technical and commercial public
telephone front end data management; tax consolidation
payable
Other minor companies
7
3
Total trade and miscellaneous
payables and other current
liabilities
437
809
(million euros)
12/31/2024
12/31/2023
Type of contract
STATEMENT OF CASH FLOWS LINE ITEMS
(million euros)
2024
2023
Type of contract
Purchase of intangible, tangible
and rights of use assets on an
accrual basis
Telsy S.p.A.
18
19 Purchase of ICT security solutions and services, supplies for
network infrastructure
Noovle S.p.A. Società Benefit
4
3 License acquisitions
Olivetti S.p.A. Società Benefit
1
1 Investments in platform development and implementation
Telecom Italia Trust
Technologies S.r.l.
1
1 Investments in Digital Identity and Certification Authority
Tim Servizi Digitali S.p.A.
—
1 Acquisition of network infrastructure jobs
Total purchases of intangible,
tangible and rights of use
assets on an accrual basis
24
25
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
539
Transactions with associates, subsidiaries of associates and joint
ventures
The most significant values of the transactions with associates, subsidiaries of associates and joint ventures are
summarized in the tables below.
It should be noted that TIM S.p.A. sold its stakes in Italtel S.p.A., Nordcom S.p.A. and Daphne 3 S.p.A. on July 4, 2024,
July 15, 2024 and November 29, 2024, respectively. As of these dates, these companies ceased to be related parties, so
the asset values as of December 31, 2024 toward these companies are zeroed out, and the economic values for 2024
reflect the transactions up to the date of sale.
SEPARATE INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
Type of contract
Revenues
Polo Strategico Nazionale S.p.A.
183
72 Supply
of
software
and
related
installation
and
configuration services; security services; cloud services,
Data Center spaces, connectivity, design
ITALTEL S.p.A.
1
2 Fixed and mobile telephony services including equipment,
licenses and outsourcing services
NordCom S.p.A.
—
1 Fixed and mobile telephony services including equipment,
Microsoft maintenance and licenses, network connections
and outsourcing
TIMFin S.p.A.
(29)
(37) Mobile and fixed voice services, outsourcing services and
fees; costs related to financing transactions recorded as a
reduction in revenues
Total revenues
155
38
Other income
1
1 Recovery of seconded personnel costs, recovery of
centralized expenses
Acquisition of goods and
services
ITALTEL S.p.A.
—
33 Supply of equipment and software licenses and related
professional
services;
hardware
and
software
maintenance services linked to TIM offers to end
customers; network and security equipment maintenance
services for a period of 24 months linked to the TIM offer
for the customer Poste Italiane; supplies for the expansion
of TIM's fiber network
W.A.Y. S.r.l.
7
9 Supply, installation and technical assistance services for
geolocation equipment provided as part of offers to TIM
customers, software development
Other minor companies
—
1
Total acquisition of goods and
services
7
43
Income (expenses) from
investments
Daphne 3 S.p.A.
11
12 Dividends
Total income (expenses) from
investments
11
12
Finance expenses
TIMFin S.p.A.
4
4 Finance expenses for commission and other finance
Total finance expenses
4
4
STATEMENT OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
Type of contract
Net financial debt
Current financial liabilities
TIMFin S.p.A.
1
2 Financial liabilities for expenses on the transfer of
receivables
Total Current financial
liabilities
1
2
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
540
(million euros)
12/31/2024
12/31/2023
Type of contract
Other statement of financial
position line items
Miscellaneous receivables and
other non-current assets
—
2 Prepayment (non-current portion) of costs to Italtel S.p.A.
Trade and miscellaneous
receivables and other current
assets
Polo Strategico Nazionale S.p.A.
185
45 Supply of products, software installation and configuration
services, cloud servers, Data Center spaces, connectivity
and design
ITALTEL S.p.A.
—
2 Supply of fixed and mobile telephone services including
equipment, Microsoft licenses and outsourcing services;
prepayment (current portion) of costs
W.A.Y. S.r.l.
—
1 Deferred costs for software developments and for supply,
installation
and
technical
assistance
services
for
geolocation equipment provided as part of offers to TIM
customers
Other minor companies
1
—
Total trade and miscellaneous
receivables and other current
assets
186
48
Trade and miscellaneous
payables and other current
liabilities
ITALTEL S.p.A.
—
7 Supply
contracts
connected
with
investment
and
operation
TIMFin S.p.A.
3
5 Miscellaneous costs for loans
W.A.Y. S.r.l.
3
2 Supply, installation and technical assistance services for
geolocation equipment provided as part of offers to TIM
customers, software development
Other minor companies
—
1
Total trade and miscellaneous
payables and other current
liabilities
6
15
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
541
STATEMENT OF CASH FLOWS LINE ITEMS
(million euros)
2024
2023
Type of contract
Purchase of intangible, tangible
and rights of use assets on an
accrual basis
ITALTEL S.p.A.
—
37 Software development, FTTH design for FiberCop works,
supply of hardware and software, installations of hardware
and engineering services for the network platforms;
supplies for the expansion of TIM's fiber network
Total purchases of intangible,
tangible and rights of use
assets on an accrual basis
—
37
TIM S.p.A. has issued guarantees on behalf of subsidiaries, associates and joint ventures for a total of 3,313 million
euros, net of back-to-back guarantees received (5,614 million euros at December 31, 2023).
In particular, the following is noted: 1,925 million euros on behalf of Telecom Italia Capital S.A. (3,620 million euros at
December 31, 2023); 787 million euros on behalf of Telecom Italia Finance S.A. (1,172 million euros at December 31,
2023); 198 million euros on behalf of Telecom Italia Sparkle S.p.A. (191 million euros at December 31, 2023); 197 million
euros on behalf of Noovle S.p.A. (125 million euros at December 31, 2023); 111 million euros related to Olivetti S.p.A.
Società Benefit (104 million euros as of December 31, 2023). Guarantees in the interest of FiberCop S.p.A. were also
included as of December 31, 2023. (256 million euros) and Telenergia S.r.l. (89 million euros), which left the scope of
consolidation as a result of the NetCo transaction.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
542
Transactions with other related parties (through directors, statutory
auditors and key managers, as well as participants in shareholder
agreements pursuant to Article 122 of the Consolidated Law on
Finance)
Details are provided below of the transactions with:
■
Vivendi Group and the companies of the group that it belongs to;
■
Cassa Depositi e Prestiti Group and Group subsidiaries;
■
Ministry of Economy and Finance (MEF);
■
Companies related through Directors, Statutory Auditors and Key Managers with strategic responsibilities.
It should be noted that, as explained above, the MEF became a related party as of October 4, 2024, so the income
statement and balance sheet values as of December 31, 2024 reflect transactions made as of October 4, 2024, while
the income statement values for 2023 are zeroed out.
SEPARATE INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
Type of contract
Revenues
Cassa Depositi e Prestiti Group
79
118 IRU transfer of rights to use dark fiber installation and
infrastructures; housing services, dark fiber maintenance
and dedicated GEA/GigaNet connectivity; fixed and mobile
telephony services including equipment; application
outsourcing services, cloud services, equipment
maintenance services
Total revenues
79
118
Acquisition of goods and
services
Havas Group
52
61 Service & advisory activities in the purchase of media space
by TIM; study and implementation of advertising campaigns
for the TIM and KENA brands, editorial management
services for TIM brands on social media and TIM data room
management services
Vivendi group
6
6 Operational management of TIM's “TIM I Love Games”
online store platform and related developments; TIM cloud
gaming (TIMGAMES) service in SaaS mode; use of My Canal
platform licenses
Cassa Depositi e Prestiti Group
1
(1) Concession
of
the
installation
of
sheaths
for
telecommunication cables along the motorway segments
(occupation of soil and movement of cables); maintenance
of the Open Fiber network in Milan and Genoa (primary
network share)
Total acquisition of goods and
services
59
66
Finance income
1
1 Interest income on trade receivables to Cassa Depositi e
Prestiti Group
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
543
STATEMENT OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
Type of contract
Net financial debt
Non-current financial assets
—
1 Non-current financial payables to the Cassa Depositi e
Prestiti Group for the IRU transfer of rights of use to
installation and dark fiber infrastructure
Financial receivables and other
current financial assets
24
1 Current financial payables to the Cassa Depositi e Prestiti
Group for the IRU transfer of rights of use to installation
and dark fiber infrastructure
Other statement of financial
position line items
Rights of use assets
—
2 Rights to the Cassa Depositi e Presiti Group for the use of
the Open Fiber network in Milan and Genoa
Trade and miscellaneous
receivables and other current
assets
Cassa Depositi e Prestiti Group
9
25 Housing services, dark fiber maintenance and dedicated
GEA/GigaNet connectivity; fixed and mobile telephony
services including equipment; application outsourcing
services, cloud services, equipment maintenance services
Total trade and miscellaneous
receivables and other current
assets
9
25
Miscellaneous payables and
other non-current liabilities
Cassa Depositi e Prestiti Group
—
18 Deferred income on deferred fees
Total miscellaneous payables
and other non-current liabilities
—
18
Trade and miscellaneous
payables and other current
liabilities
Havas Group
12
24 Service & advisory activities in the purchase of media
space by TIM; study and implementation of advertising
campaigns for the TIM and KENA brands, editorial
management services for TIM brands on social media and
TIM data room management services
Cassa Depositi e Prestiti Group
1
6 Concession
of
the
installation
of
sheaths
for
telecommunication cables along the motorway segments
(occupation
of
soil
and
movement
of
cables);
maintenance of the Open Fiber network in Milan and
Genoa (primary network share)
Vivendi group
1
2 Operational management of TIM's “TIM I Love Games”
online store platform and related developments; TIM cloud
gaming (TIMGAMES) service in SaaS mode; use of My
Canal platform licenses
Total trade and miscellaneous
payables and other current
liabilities
14
32
STATEMENT OF CASH FLOWS LINE ITEMS
(million euros)
2024
2023
Type of contract
Purchase of intangible and
tangible assets on an accrual
basis
12
1 Investments in intangible and tangible assets (supplier:
Open Fiber), in relation to the 5G Coverage Plan under
the NRRP
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
544
Transactions with pension funds
The most significant amounts are summarized as follows:
SEPARATE INCOME STATEMENT LINE ITEMS
(million euros)
2024
2023
Type of contract
Employee benefits expenses
Contributions to pension funds
Fontedir
6
7
Telemaco
39
57
Total Employee benefits
45
64
STATEMENT OF FINANCIAL POSITION LINE ITEMS
(million euros)
12/31/2024
12/31/2023
Type of contract
Trade and miscellaneous
payables and other current
liabilities
Payables for contributions to pension funds
Fontedir
1
2
Telemaco
8
18
Total trade and miscellaneous
payables and other current
liabilities
9
20
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
545
Remuneration to Key Managers with Strategic Responsibilities
In 2024, the total remuneration recorded on an accrual basis by TIM S.p.A. in respect of key managers amounted to 14
million euros (16 million euros at December 31, 2023). The figure breaks down as follows:
(million euros)
2024
2023
Short-term remuneration
13
14
Long-term remuneration
—
—
Employment termination benefit incentives
—
—
Share-based payments (*)
1
2
Total
14
16
(*) These refer to the fair value, accrued to December 31, of rights under the incentive plans of TIM S.p.A. (Long Term Incentive and Stock Options Plan).
Short-term remuneration is paid during the reference year, and, at the latest, within the six months following the end
of that period.
It bears noting that the remuneration for the 2024 financial year does not include the negative difference of -0.4
million euros between the actual disbursement and the remuneration established in the 2023 financial year. Likewise,
it does not include the taxable amount of the shares of the LTI Plan 2021-2023 assigned during the first half of 2024,
equal to 0.5 million euros.
In 2024, the contributions paid in to defined contribution plans (Assida and Fontedir) by TIM S.p.A. on behalf of key
managers, amounted to 232 thousand euros (231 thousand euros at December 31, 2023).
With regard to the remuneration to Directors and Statutory Auditors due for the 2024 financial year, we refer you
(pursuant to art. 2427, n.16 of the Civil Code) to the Remuneration Report, which is available at the Company's
headquarters and on the website www.gruppotim.it/gruppo/governance/remuneration/report.html.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
546
In 2024, "Key managers", i.e. those who have the power and responsibility, directly or indirectly, for the planning,
direction and control of the operations of the TIM Group, including directors, were the following:
Directors:
Pietro Labriola
Managing Director and Chief Executive Officer of TIM S.p.A.
General Manager of TIM S.p.A.
Managers:
Alberto Maria Griselli
Diretor Presidente TIM S.A.
Adrian Calaza Noia
(1)
Chief Financial Officer
Paolo Chiriotti
(2)
Chief Human Resources & Organization Officer
Simone De Rose
(3)
Chief Procurement & Logistics Officer
Giampaolo Leone
(4)
Chief Procurement & Logistics Officer
Massimo Mancini
(5)
Chief Enterprise Market Officer
Roberto Mazzilli
(6)
Chief IT Group Officer
Giovanni Gionata Massimiliano Moglia
(7)
Chief Regulatory Affairs Officer
Agostino Nuzzolo
(8)
Chief Legal, Regulatory & Tax Officer
Claudio Giovanni Ezio Ongaro
(9)
Chief Strategy, Business Development & Wholebuy Officer
Elisabetta Romano
(10)
Chief Network, Operations & Wholesale Officer
Andrea Rossini
Chief Consumer, Small & Medium and Mobile Wholesale Market Officer
Eugenio Santagata
(11)
Chief Public Affairs, Security and International Business Officer
Elio Schiavo
Chief Enterprise and Innovative Solutions Officer
(1) From November 24, 2023 to June 30, 2024, also Interim Head of Administration, Finance & Control in the Chief Network, Operations & Wholesale Office.
(2) From November 24, 2023, to June 30, 2024, also Interim Head of Human Resources and Organization in the Chief Network, Operations & Wholesale Office.
(3) Until October 23, 2024. From November 24, 2023, to June 30, 2024, also Interim Head of Procurement in the Chief Network, Operations & Wholesale Office.
(4) Since October 24, 2024.
(5) Until March 6, 2024.
(6) Since September 27, 2024.
(7) Until June 30, 2024. From November 24, 2023, also Interim Head of Regulatory Affairs in the Chief Network, Operations & Wholesale Office.
(8) Head of Legal & Tax until September 27, 2024 and Head of Legal, Regulatory & Tax since September 28, 2024. From November 24, 2023, to June 30, 2024,
also Interim Head of Legal & Tax in the Chief Network, Operations & Wholesale Office.
(9) From November 24, 2023, to June 30, 2024, Interim Head of Strategy & Business Development in the Chief Network, Operations & Wholesale Office.
(10) Until June 30, 2024.
(11) Head of Public Affairs & Security Office until September 27, 2024. From November 24, 2023 to June 30, 2024, also Interim Head of Public Affairs & Security
in the Chief Network, Operations & Wholesale Office.
Separate financial statements of
TIM S.p.A.
Note 37
Related-party transactions
547
NOTE 38
EQUITY COMPENSATION PLANS
The Shareholders’ Meeting of April 23, 2020 approved the launch of the rolling and equity based long-term
incentive plan called LTI 2020-2022.
The Plan envisaged three incentive cycles, connected with the performance three-year periods 2020-2022,
2021-2023, 2022-2024; over time, two of the three incentive cycles have been launched: 2020-2022, 2021-2023.
On April 7, 2022, the Shareholders’ Meeting approved, after acknowledging the changes in scenario, the
obsolescence of the 2020-2022 Long Term Incentive Plan and replaced the third cycle of this plan with the new
2022-2024 Stock Option Plan described below, which completed its vesting period on December 31, 2024.
For more details on the 2020-2022 LTI and 2021-2023 LTI Plans, see the Financial Statements of TIM S.p.A. as
at December 31, 2022 and December 31, 2023.
Description of stock option plans
TIM S.p.A. 2022-2024 Stock Option Plan
The Shareholders’ Meeting held on April 7, 2022, approved the one-shot 2022-2024 Stock Option Plan with the
aim of attracting, retaining and providing long-term incentives for Group managers, who are the Plan’s
beneficiaries.
The final results of the objectives tied to this Plan were approved by the TIM S.p.A. Board of Directors on March
5, 2025.
It should be noted that these plans do not have a significant impact on profit and loss or the balance sheet as
of December 31, 2024.
The Plan has a strike price of 0.4240 euros, a three-year vesting period (1.1.2022-12.31.2024) and a two-year
exercise period (from approval of the 2024 financial statements and through to the next two years).
The following performance conditions are also envisaged for the three-year period 2022-2024:
■
Cumulative (reported) Economic-financial indicator (EBITDA-CapEx) with a weight of 70%;
■
ESG indicators with a total weight of 30%, structured into:
•
percentage of women in positions of responsibility (15%);
•
percentage of consumption of renewable energies (15%).
The level of achievement of the indicators determines the accrual of option rights over an interval that ranges
from -10% to +10% with respect to the target number allocated per bracket.
At December 31, 2024, there were a total of 142 addressees and the number of options assigned at target is
196,144,979.
For further details, see the Information Document on the initiative at
https://www.gruppotim.it/content/dam/gt/investitori/doc---avvisi/anno-2022/ita/Doc-informativo-Piano-
stockoption-22-24.pdf.
Calculation of fair value measurement of the granted options
and rights
Parameters used to determine the fair value
Plans/Parameters
Exercise
price
(euros)
Nominal
value
(euros)
(1)
Volatility
(2)
Duration
Expected
dividends
(euros)
(3)
Risk-free
interest rate
(4)
SOP 2022-2024
0.424
—
34.6%
3 years
0.02
0.479% at 3
years
(1)
Arithmetic mean of the official prices of the Shares recognized starting from the stock market trading day prior to that of assignment until
the thirtieth previous ordinary calendar day (both included) on the Electronic Stock Exchange organized and managed by Borsa Italiana
S.p.A., calculated using only the days to which the prices taken as the basis of calculation refer as the divisor, cut off at the second decimal.
(2)
Based on the performance objectives of the plan, the TIM share volatility values were considered and, if necessary, also those of the securities
of the major companies of the telecommunications sector (“peer basket”).
(3)
Dividends have been estimated on the basis of Bloomberg data.
(4)
The risk-free interest rate refers to the rate of government bonds of the Federal Republic of Germany (market benchmark for transactions in
euros) on the valuation date with a maturity consistent with the reporting period.
Separate financial statements of
TIM S.p.A.
Note 38
Equity compensation plans
548
Effects on the income statement and statement of financial position
Equity compensation plans which call for payment in equity instruments are recorded at fair value which
represents the cost of such instruments at the grant date and is recorded in the separate income statements
under “Employee benefits expenses” over the period between the grant date and the vesting period with a
contra-entry to the equity reserve (“Other equity instruments”). For the portion of the plans that provide for
the payment of compensation in cash, the amount is recognized in liabilities as a contra-entry to “Employee
benefits expenses”. Equity compensation plans which call for payment in equity instruments did not have
significant impacts either on the income statements or the statements of financial position or of cash flows of
TIM S.p.A at December 31, 2024.
Separate financial statements of
TIM S.p.A.
Note 38
Equity compensation plans
549
NOTE 39
SIGNIFICANT NON-RECURRING EVENTS AND
TRANSACTIONS
The impact of non-recurring events and transactions on equity, profit, net financial debt and cash flows is set
out below in accordance with Consob Communication DEM/6064293 dated July 28, 2006:
(million euros)
Equity
Profit (loss) for
the year
Net financial
debt
Cash flows
(*)
Carrying amount
(a)
12,103
(1,242)
9,915
—
Other income - Contingent gain
55
55
—
—
Acquisition of goods and services - Expenses
related to agreements and the development of
non-recurring projects and other expenses
(24)
(24)
24
(24)
Employee benefits expenses - Charges connected
to corporate reorganization/restructuring and
other costs
(80)
(80)
438
(438)
Other operating expenses - Expenses related to
disputes and regulatory sanctions and potential
liabilities related to them, other provisions and
charges
(40)
(40)
167
(167)
Gains (losses) on disposals of non-current assets
3
3
(1)
1
Income/(expenses) from investments
26
26
(269)
269
Finance income
3
3
—
—
Finance expenses
(28)
(28)
—
—
Total non-recurring effects
(b)
38
38
359
(359)
Income / (Expenses) relating to Discontinued
operations
(c)
123
123
(11,644)
4,169
Figurative amount – financial statements
(a-b-c)
11,942
(1,403)
21,200
(3,810)
(*) Cash flows refer to the increase (decrease) in Cash and cash equivalents during the year.
Separate financial statements of
TIM S.p.A.
Note 39
Significant non-recurring events and transactions
550
The impact of non-recurring items on the separate income statement line items is as follows:
(million euros)
2024
2023
Operating revenues and other income
55
—
Other income - Contingent gain
55
—
Acquisition of goods and services, Change in inventories
(24)
(35)
Acquisition of goods and services - Expenses related to agreements and the
development of non-recurring projects and other expenses
(24)
(35)
Employee benefits expenses
(84)
(466)
Expenses related to corporate reorganization/restructuring and other costs
(84)
(466)
Other operating expenses
(44)
(132)
Expenses related to disputes and regulatory sanctions and potential liabilities related to
them, other provisions and charges
(44)
(132)
Impact on Operating profit (loss) before depreciation and amortization, capital gains
(losses) and impairment reversals (losses) on non-current assets (EBITDA)
(97)
(633)
Gains (losses) on disposals of non-current assets
3
2
Gains on disposals of non-current assets
3
2
Impact on Operating profit (EBIT)
(94)
(631)
Income / (expenses) from investments
26
(15)
Net gain/(loss) on disposal of investments
26
(15)
Finance income
3
—
Other finance income
3
—
Finance expenses
(28)
(34)
Other finance expenses
(28)
(34)
Impact on profit (loss) before tax from continuing operations
(93)
(680)
Income tax expense on non-recurring items
8
13
Income / (Expenses) relating to Discontinued operations
123
(6)
Impact on profit (loss) for the year
38
(673)
Separate financial statements of
TIM S.p.A.
Note 39
Significant non-recurring events and transactions
551
NOTE 40
POSITIONS OR TRANSACTIONS RESULTING
FROM ATYPICAL AND/OR UNUSUAL
OPERATIONS
In accordance with Consob Communication DEM/6064293 of July 28, 2006, a statement is made to the effect
that in 2024 no atypical and/or unusual transactions, as defined by that Communication, were pursued.
NOTE 41
OTHER INFORMATION
Research and Development
Costs for research and development activities are represented by external costs, dedicated employee benefits
expenses and depreciation and amortization. Details are as follows:
(million euros)
2024
2023
Research and development costs expensed during the year
35
39
Capitalized development costs
468
511
Total research and development costs (expensed and capitalized)
503
550
The reduction of 47 million euros compared to fiscal year 2023 can be attributed partly to the time
rescheduling of some projects (IPCEI, Public Safety) and partly to the reduction of spending related
toinformation technology as a result of efficiency and rationalization of suppliers.
In the 2024 separate income statement, depreciation/amortization charges totaling 520 million euros were
recorded for development costs capitalized during the year and in prior years.
Research and development activities conducted by TIM S.p.A. are detailed in the Report on Operations
("Innovation, Research and Development" section).
Lease income
TIM has entered into lease agreements for land and buildings for office use and industrial use, infrastructure
sites for the mobile network and network infrastructures; at December 31, 2024, the lease installments at
nominal value still to be collected totaled:
(million euros)
12/31/2024
12/31/2023
Within next year
58
112
From 1 to 2 years after the end of the reporting period
20
62
From 2 to 3 years after the end of the reporting period
18
57
From 3 to 4 years after the end of the reporting period
17
54
From 4 to 5 years after the end of the reporting period
15
53
Beyond 5 years after the end of the reporting period
11
50
Total
139
388
Separate financial statements of
TIM S.p.A.
Note 40
Positions or transactions resulting from atypical
and/or unusual operations
552
Public Funds
Italian Law 124/2017 requires that information on subsidies, contributions, paid assignments and economic
benefits of any kind received from public administrations be provided. In relation to this, funds received are
shown in the following table:
Distributing entity
Area of intervention
Received in 2024
(million euros)
Received in 2023
(million euros)
Fondimpresa/
Fondirigenti
training
2
3
Infratel
construction of network infrastructure
7
758 (*)
Ministry of Enterprises
and Made in Italy
(MIMIT)(1)
research and innovation
32
3
ANPAL
training
1
3
Other (2)
research
1
1
Total
43
768
(*) include 488 million euros collected on January 2, 2024; 705 million euros were disbursed to FiberCop on July
1, 2024.
(1) 2024 - includes the Tim Edge & Cloud Continuum, TIMONE, CADUCEO Projects
2023 - includes the ChAALenge and TIMONE Projects
(2) 2024 - MUR and the Lombardy Region, Sector affected: research
2023 – MUR; Sector affected: research
In 2024, TIM S.p.A. received an advance of 31.2 million euros on non-repayable grants for the Tim Edge & Cloud
Continuum project, targeted at research and development of a next-generation Edge and Cloud environment.
These benefits were granted by the Ministry of Enterprises and Made in Italy under the IPCEI Fund, in
accordance with Article 5 of the Decree of April 21, 2021.
With regard to the Investment Project for the implementation of broadband infrastructure in the Tuscany
Region (PNLB), TIM received non-repayable grants in the amount of 7 million euros in 2024. The Project falls
under Aid Scheme no. SA.33807(2011/N) concerning the implementation of the "National Broadband Italy
Plan," authorized by the European Commission in Decision C(2012) 3488 of May 24, 2012. In January 2015, TIM
S.p.A. was admitted to the benefit scheme of Infratel Italia S.p.A. The scheme began on March 11, 2015, and it
finished being implemented on October 30, 2017.
TIM also received non-repayable grants of EUR 0.7 million euros in 2024 and EUR 0.9 million euros in 2023 in
relation to the "TIMONE - TIM Oss for Network Evolution" research and development project (Scheme no.
F/140007/00/X39). TIM was admitted to the benefit scheme of the Italian facilities by the Ministry of Economic
Development (now Ministry of Enterprises and Made in Italy) in June 2020 (M.D. 0002324 - 06/03/2020). The 6
Goals of the TIMONE scheme were target at OSS transformation and evolution activities in the areas of
Network Creation & Inventory, Fulfillment, Assurance and AI/CC/ML. The Project, which has been operational
since October 1, 2019, ended in implementation activities on September 30, 2022.
TIM was admitted to the benefits scheme introduced by the Ministerial Decree of March 5, 2018, of the Ministry
of Enterprise and Made in Italy (MIMIT) for two R&D projects concerning technological innovation in the health
sector: ChAALenge (Scheme no. F/180016/01-05/X43) and CADUCEO (Scheme no. F/180025/01-05/X43 - “Cloud
plAtform for intelligent prevention and Diagnosis sUpported by artifiCial intelligEnce solutiOns"). The
ChAALenge project’s “Smart Everything Everywhere” model aims to improve the quality of life of frail people in
every environment by building an integrated system to support frailty and aging. The project was rolled out on
January 1, 2021 and wrapped up on December 31, 2023. TIM received non-repayable grants of 0.4 million euros
in 2023. No disbursements were made in FY2024. The CADUCEO project aims to create an advanced cloud
platform supported by AI-based solutions for intelligent prevention and diagnosis in the field of health. The
project’s core concept is to harness the power of AI and cloud computing to improve medical diagnosis and
prevention strategies. The project was rolled out on January 11, 2021 and wrapped up on December 31, 2024.
TIM received non-repayable grants of 0.2 million euros in 2024.
Summary schedule of fees due to the audit firm and other
firms in its network
The following schedule reports the fees due to EY S.p.A. for the audit of the 2024 financial statements, and the
fees referring to the year 2024 for other audit and review services, and for other services besides audit
rendered to TIM by EY and other firms in the EY network. The out-of-pocket expenses incurred for these
services in 2024 are also shown.
Separate financial statements of
TIM S.p.A.
Note 41
Other information
553
TIM S.p.A.
(in euro thousands)
EY S.p.A.
Other firms
of the EY
network
Total EY
network
Audit services:
audit of the separate financial statements
1,074
1,074
audit of the consolidated financial statements
222
222
audit of the internal control system that supervises the process of
preparation of the consolidated financial statements and limited statutory
audit of the financial disclosure as at March 31 and September 30
1,108
1,108
limited audit of the half-year consolidated financial statements
224
224
other
787
787
Audit services with the issue of certification
479
479
Certification of compliance of the Consolidated Non-Financial Statement
360
360
Other services
—
—
Total 2024 fees due for auditing and other services to the EY network
4,254
—
4,254
Out-of-pocket expenses
39
39
Total
4,293
—
4,293
Separate financial statements of
TIM S.p.A.
Note 41
Other information
554
NOTE 42
EVENTS AFTER DECEMBER 31, 2024
TIM S.p.A.: the BoD approved MEF and Retelit's bid for Sparkle
On February 12, 2025, TIM's Board of Directors reviewed the binding offer for the purchase of TIM's 100% stake
in Telecom Italia Sparkle S.p.A., sent the previous day by the Ministry of Economy and Finance (MEF) and
Retelit S.p.A.
The Board, at the outcome of an extensive and thorough review, conducted with the assistance of leading
financial and legal advisors, unanimously approved, and with the favorable opinion of the Related Parties
Committee, the purchase offer submitted by the MEF and Retelit, which valued Telecom Italia Sparkle S.p.A. at
700 million euros.
Contracts will be signed by April 11, 2025, and the sale is expected to be finalized by the first quarter of 2026,
once preparatory activities, including obtaining Antitrust and Golden Power approvals, have been completed.
Separate financial statements of
TIM S.p.A.
Note 42
Events after December 31, 2024
555
NOTE 43
LIST OF INVESTMENTS IN SUBSIDIARIES,
ASSOCIATES AND JOINT VENTURES
(thousands of
euros)
Reg. office
Share
capital
(1)
Equity
(1) (2)
Profit/
(loss) (1)
% Ownership
Share of equity
(A) (3)
Carrying
amount
(B) (4)
Difference
(B-A)
Investments in subsidiaries
CD FIBER S.r.l.
Rome
Euro
50
38
(5)
100.00 %
38
37
(1)
NOOVLE S.p.A.
Società Benefit
Milan
Euro
1,000
899,003
(36,193)
100.00 %
899,003
1,079,904
180,901
OLIVETTI S.p.A.
Società Benefit
Ivrea (TO)
Euro
11,000
8,179
(2,052)
100.00 %
8,179
8,232
53
TELECOM ITALIA
CAPITAL S.A.
Luxembourg
Euro
2,336
118,917
53,623
100.00 %
118,917
2,388
(116,529)
TELECOM ITALIA
FINANCE S.A.
Luxembourg
Euro
1,818,692
6,511,464
159,482
100.00 %
6,511,464
5,914,971
(596,493)
TELECOM ITALIA
LATAM PARTIC. E
GESTÃO ADMIN.
SanPaolo (Brazil)
R$
219,360
4,243
(14,166)
Euro
34,098
660
(2,202)
100.00 %
660
(5)
15,995
15,335
TELECOM ITALIA
SAN MARINO
S.p.A.
San Marino
Euro
1,808
12,053
2,405
100.00 %
12,053
7,565
(4,488)
TELECOM ITALIA
SPARKLE S.p.A.
Rome
Euro
200,000
211,912
(70,485)
100.00 %
211,912
(6)
181,130
(30,782)
TELECOM ITALIA
VENTURES S.r.l.
Milan
Euro
10
89,393
4,090
100.00 %
89,393
63,635
(25,758)
TELECONTACT
CENTER S.p.A.
Naples
Euro
3,000
36,587
(3,644)
100.00 %
36,587
12,654
(23,933)
TELSY S.p.A.
Turin
Euro
5,390
41,984
5,302
100.00 %
41,984
19,522
(22,462)
TIM BRASIL
SERVIÇOS E
PARTICIPAÇÕES
Rio de Janeiro (Brazil)
R$
8,227,357
7,296,977
1,083,914
Euro
1,278,894
1,134,272
168,488
0.00000001 %
—
—
—
TIM MY BROKER
S.r.l.
Rome
Euro
10
9,728
1,912
100.00 %
9,728
10
(9,718)
TIM RETAIL S.r.l.
Milan
Euro
2,402
96,581
562
100.00 %
96,581
15,143
(81,438)
7,321,186
(715,313)
Separate financial statements of
TIM S.p.A.
Note 43
List of investments In Subsidiaries, Associates and
Joint Ventures
556
(thousands of
euros)
Reg. office
Share
capital
(1)
Equity
(1) (2)
Profit/
(losses)
(1)
%
Ownership
Share of equity
(A) (3)
Carrying
amount
(B) (4)
Difference
(B-A)
Investments in associates and joint ventures
AREE URBANE
S.r.l. (in liquidation)
Milan
Euro
100
(114,180)
(3,757)
32.62 %
(37,246)
—
37,246
POLO STRATEGICO
NAZIONALE S.p.A.
Rome
Euro
3,000
38,405
(12,395)
45.00 %
17,282
31,500
14,218
TIGLIO I S.r.l. (in
liquidation)
Milan
Euro
100
89
(28)
47.80 %
43
—
(43)
TIMFIN S.p.A.
Turin
Euro
40,000
61,227
(708)
49.00 %
30,001
36,750
6,749
68,250
58,170
(1) Calculated from the last approved financial statements. For Subsidiaries, the data were used in accordance with IFRS principles, prepared for
consolidation.
(2) Including profit/(loss).
(3) Net of any dividends to be distributed.
(4) Including capital deposits in investments.
(5) Covered by the investment provision.
(6) Data derived from the consolidated financial statements.
Separate financial statements of
TIM S.p.A.
Note 43
List of investments In Subsidiaries, Associates and
Joint Ventures
557
CERTIFICATION OF THE FINANCIAL STATEMENTS
FOR THE YEAR PURSUANT TO ARTICLE 81-TER
OF CONSOB REGULATION 11971 DATED MAY 14,
1999, AS AMENDED
1.
We, the undersigned, Pietro Labriola, as Chief Executive Officer, and Adrian Calaza Noia, as Manager
responsible for preparing TIM S.p.A. financial reports, certify, having also considered the provisions of Article
154-bis, subsections 3 and 4, of Italian Legislative Decree 58 of February 24, 1998:
–
the adequacy in relation to the characteristics of the company and
–
the effective application of the administrative and accounting procedures used in the preparation of
the financial statements for the 2024 fiscal year.
2.
TIM has adopted the Internal Control – Integrated Framework Model (2013), issued by the Committee of
Sponsoring Organizations of the Treadway Commission, as its framework for the establishment and
assessment of its internal control system, with particular reference to the internal controls for the
preparation of the financial statements.
3.
The undersigned also certify that:
3.1 The Financial Statements for the year ending December 31, 2024:
a)
have been prepared in compliance with the international accounting standards adopted by the
European Union pursuant to Regulation (EC) 1606/2002 of the European Parliament and Council of
July 19, 2002 (International Financial Reporting Standards – IFRS), as well as the legislative and
regulatory provisions in force in Italy, in particular Article 154-ter of Italian Legislative Decree 58 of
February 24, 1998 and the measures enacted for the implementation of Article 9 of Italian
Legislative Decree 38 of February 28, 2005;
b)
agree with the results of the accounting records and entries;
c)
provide a true and fair view of the financial condition, the results of operations and the cash flows
of the Company;
3.2 The Report on Operations contains a reliable operating and financial review of the Company, as well as
a description of its exposure to the main risks and uncertainties. The Report on Operations also
contains a reliable analysis of information concerning significant related-party transactions.
March 5, 2025
TIM S.p.A.
Separate Financial
Statements
Certification of the Financial Statements 558
INDEPENDENT AUDITORS' REPORT
TIM S.p.A.
Separate Financial Statements
Independent Auditors’ Report
559
EY S.p.A.
Sede Legale: Via Meravigli, 12 – 20123 Milano
Sede Secondaria: Via Lombardia, 31 – 00187 Roma
Capitale Sociale Euro 2.975.000 i.v.
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998
A member firm of Ernst & Young Global Limited
EY S.p.A.
Via Meucci, 5
10121 Torino
Tel: +39 011 5161611
Fax: +39 011 5612554
ey.com
Independent auditor’s report pursuant to article 14 of Legislative
Decree n. 39, dated 27 January 2010 and article 10 of EU Regulation
n. 537/2014
(Translation from the original Italian text)
To the Shareholders of
TIM S.p.A.
Report on the Audit of the Financial Statements
Opinion
We have audited the separate financial statements of TIM S.p.A. (the Company), which comprise the
statement of financial position as at December 31,2024, and the separate statement of income, the
statement of comprehensive income, statement of changes in equity and statement of cash flows for
the year then ended, and notes to the separate financial statements, including material accounting
policy information.
In our opinion, the separate financial statements give a true and fair view of the financial position of
the Company as at December 31,2024, and of its financial performance and its cash flows for the
year then ended in accordance with IFRS accounting standards issued by International Accounting
Standards Board as adopted by the European Union and with the regulations issued for implementing
art. 9 of Legislative Decree n. 38/2005.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the regulations and standards on ethics and independence applicable to audits of
financial statements under Italian Laws. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the separate financial statements of the current period. These matters were addressed in
the context of our audit of the separate financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
We identified the following key audit matters:
Key Audit Matter
Audit Response
Discontinued operations
On July 1, 2024, in accordance with the
Transaction Agreement executed between TIM
and Optics S.p.A., a company controlled by
Kohlberg Kravis Roberts & Co. L.P., the
subsidiary Fibercop S.p.A., to which the
business comprising the primary network assets
and laying infrastructure had been previously
contributed, has been disposed.
The loss of control resulting from the disposal of
the interest in Fibercop S.p.A. led to the
recognition of the related economic and
financial effects.
The gain on disposal amounted to approximately
Euro 0.1 billion, net of the related costs to sell
and after the allocation of the portion of
goodwill attributable to the disposed entity.
The economic results of the disposed entity,
attributable to TIM S.p.A. up to the date of the
Transaction, have been classified as
Discontinued Operations, in compliance with
IFRS 5.
Considering its complexity and relevance, as
well as due to the level of judgment required in
estimating certain elements which impact its
result — such as the definition of certain
components of the consideration received and
the attribution of the goodwill — the Transaction
has been considered as a key audit matter.
Disclosure related to the Transaction are
provided in Note 13 “Non-current assets held
for sale/Discontinued operations”.
Our audit procedures in response to this key
audit matter included, among others:
►obtaining an understanding of the
Transaction by participating in meetings with
the Company’s management and analyzing
the Transaction Agreement and its Annexes;
►the assessment of the methodology adopted
by the Company to define the perimeter of
the Transaction, with particular regard to the
assumptions used in the process of allocating
the goodwill to the disposed entity;
►the evaluation of the reasonableness of the
assumptions underlying the definition of the
consideration received, with specific
attention to those components whose
valuation required high level of judgment,
such as the rights of use on P2P connections;
►the detailed testing of the identification and
quantification of the costs to sell related to
the Transaction;
►the analysis and assessment of the
compliance of the accounting treatment of
the Transaction, as well as of its presentation
within the Financial Statements with IFRS 5;
►the review of the adequacy of the disclosures
provided in the notes to the separate
financial statements with regards to the
Transaction.
Impairment test of goodwill
As of December 31, 2024, goodwill amounts to
Euro 8,814 million and refers entirely to the
Domestic cash generating unit ("CGU").
The Company determined the portion of
goodwill to be allocated to the disposed entity.
The processes and methodologies used by the
Group to evaluate and determine the
recoverable amount of each CGU, are based on
Our audit procedures in response to the key
audit matter included, among others:
►the assessment of the processes
implemented by the Group management with
reference to the criteria and methodology of
the impairment test;
►the validation of the CGUs perimeter taking
into account the disposal of Fibercop and the
assumptions that are in some cases complex
and that, due to their nature, imply the use of
judgement by Management, in particular with
reference to the forecast of future cash flows
and to the estimate of the long-term growth and
discount rates applied to the future cash flow
forecasts.
Considering the level of judgment required and
the complexity of the assumptions applied in
estimating the recoverable amount of goodwill,
we considered this area a key audit matter.
Disclosures related to the assessment of
goodwill are reported in note 3 "Goodwill" and
in note 2 "Accounting policies" in the
paragraphs “Intangible assets - Goodwill”,"
Impairment of intangible, tangible and rights of
use assets - Goodwill" and "Use of estimates".
attribution of goodwill to disposed entity;
►the assessment of the reasonableness of the
future cash flows forecasts, including
comparisons with sector data and forecasts,
utilized in the fair value determination;
►the assessment of the consistency of the
future cash flows forecasts of each CGU with
the Group business plan;
►the assessment of forecasts in light of their
historical accuracy;
►the assessment of the reasonableness of
long-term growth rates and discount rates.
The procedures referred to in the previous
points also concerned the analysis of the
assessments performed by the independent
experts appointed by the Group.
In performing our analysis, we involved our
experts in valuation techniques, who performed
an independent recalculation and carried out
sensitivity analyses on the key assumptions in
order to determine which changes in the
assumptions could materially affect the
recoverable amount.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the separate
financial statements with regards to the
valuation of goodwill.
Revenue recognition
TIM Group’s revenues amounted to Euro 9,218
million as of December 31, 2024, and refer
almost entirely to the telecommunications
services rendered to retail and enterprise
customers.
Procedures over the accounting of revenues
required significant focus in the context of our
audit procedures due to (i) a highly complex
accounting process due to the number of
commercial offers, the number of underlying
application systems and the related
reconciliation processes, (ii) the presence of
certain manual phases in the revenue
recognition process, in particular for services
provided to large customers and (iii) the
complexity in estimating commitments
Our audit procedures in response to the key
audit matter included, among others:
►an understanding of the processes underlying
the revenue recognition;
►the understanding and verification of the
design and operating effectiveness of the
relevant controls over the revenue
recognition process;
►the analysis of the application systems
supporting the revenue recognition process;
►the assessment that the accounting policy
adopted for the main commercial offers is
consistent with the provisions of the
reference accounting standard;
►the analysis, on a sample basis, of some
connected to certain contracts.
The Group provides the relative disclosures in
Note 25 "Revenues" of the separate financial
statements.
significant transactions relating to invoices
issued and invoices to be issued, in order to
verify that the contractual data and the
evidence supporting the actual service
rendered and / or goods transferred were
consistent with the accounting policy
adopted;
►the analysis of the valuation of certain
contracts identified as onerous contracts;
►the analysis of the reconciliation of the
management accounts with the accounting
records in connection with the main balance
sheet items related to customer relations;
►the analysis of the manual journal entries.
We also required external confirmations for a
sample of customers and transactions.
Lastly, we reviewed the adequacy of the
disclosure provided in the notes to the separate
financial statements with regards to the revenue
recognition process.
Regulatory disputes
As of December 31, 2024, TIM Group is
involved in several regulatory disputes in
progress, many of which are characterized by
significant counterparty requests.
The main disputes concern (i) the 28-day billing
proceeding, in which AGCOM ordered TIM to
reimburse customers for unused service days,
(ii) the I820 proceeding in which AGCM fined
TIM for a conduct restricting market
competition, (iii) the I857 proceeding for a
possible agreement restricting market
competition in connection with the partnership
with DAZN and (iv) the A514, and the related
“follow-on” proposed by some other OLOs,
procedure in which the AGCM charged TIM with
conduct aimed at hindering the entry on the
market of a new operator.
In 2024, the Italian Competition Authority
(AGCM) initiate an investigation pursuant to
Article 14 of Law No. 287/1990 against
FiberCop S.p.A. and Telecom Italia S.p.A. to
assess potential violations of Article 101 TFEU,
or to verify whether any condition occurred that
may prevent or restrict competition in the
Our audit procedures in response to the key
audit matter included, among others:
►an understanding of the process put in place
by Management for assessing disputes,
accompanied by test of the effectiveness of
the internal controls relevant for this
process;
►inquiries with Management regarding the
main assumptions made in connection with
disputes;
►testing of the "Legal Suite" database in order
to assess the completeness of the
proceedings in which the company is
involved;
►the analysis of the legal opinions prepared by
external consultants, based on which
Management has based its assessments;
►the analysis of the responses received from
external lawyers following our external
confirmations procedures.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the separate
context of the execution of the Master Service
Agreement signed upon completion of the
disposal of Fibercop.
The assessment of the disputes was carried out
by Management, as of 31 December 2024,
based on the opinion of the external lawyers, as
well as considering the latest information
available.
The estimation of the risks connected to the
disputes in which the Group is involved, requires
a high degree of judgment by the management
and, also considering the complexity of the
regulatory framework, we considered this area a
key audit matter.
Disclosures related to the assessment of the
risks relating to the regulatory disputes in which
the Group is involved is reported in note 24
"Disputes and pending legal actions, other
information, commitments and guarantees".
financial statements.
Recoverability of deferred tax assets
As of December 31, 2024, deferred tax assets
amount, net of impairment, to Euro 299 million
in the separate financial statements.
Deferred tax assets refer to the temporary
deductible differences between the book and
fiscal values of assets and liabilities in the
financial statements.
The recoverability of the carrying amount of the
deferred tax assets is subject to management’s
evaluation and is based on the estimations of
the future taxable income expected in the years
in which they will be reversed.
The processes and methodologies used to
evaluate and determine the recoverable amount
of these assets, are based on assumptions that
are in some cases complex and that, due to
their nature, imply the use of judgement by
Management, in particular with reference to the
consistency of the forecasts of future taxable
income expected by the Group with those
included in the business plan.
Considering the level of judgment required and
the complexity of the assumptions applied in
estimating future taxable amount used to
Our audit procedures in response to the key
audit matter included, among others:
►the assessment of the reasonableness of the
assumptions underlying the estimation of
future taxable income and the reconciliation
with the figures included in the Group's
business plan;
►the assessment of the reasonableness of the
accuracy of the forecasts compared with
prior periods;
►the assessment of the Management
calculations.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the separate
financial statements with regards to the
recoverability of deferred tax assets.
determine the recoverability of the deferred tax
assets, we considered this area a key audit
matter.
Disclosures related to the assessment of
recoverability of deferred tax assets are
reported in note 2 "Accounting policies" in the
paragraphs “Income tax expense (current and
deferred)" and "Use of estimates" and in note
10 “Income tax expense (current and
deferred)".
Responsibilities of Directors and Those Charged with Governance for the Separate
Financial Statements
The Directors are responsible for the preparation of the separate financial statements that give a true
and fair view in accordance with IFRS accounting standards issued by International Accounting
Standards Board as adopted by the European Union and with the regulations issued for implementing
art. 9 of Legislative Decree n. 38/2005, and, within the terms provided by the law, for such internal
control as they determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
The Directors are responsible for assessing the Company’s ability to continue as a going concern and,
when preparing the separate financial statements, for the appropriateness of the going concern
assumption, and for appropriate disclosure thereof. The Directors prepare the separate financial
statements on a going concern basis unless they either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
The statutory audit committee (“Collegio Sindacale”) is responsible, within the terms provided by the
law, for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the separate financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these separate financial statements.
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we have
exercised professional judgment and maintained professional skepticism throughout the audit. In
addition:
we have identified and assessed the risks of material misstatement of the separate financial
statements, whether due to fraud or error, designed and performed audit procedures
responsive to those risks, and obtained audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
we have obtained an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control;
we have evaluated the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Directors;
we have concluded on the appropriateness of Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going
concern;
we have evaluated the overall presentation, structure and content of the separate financial
statements, including the disclosures, and whether the separate financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
We have communicated with those charged with governance, identified at an appropriate level as
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We have provided those charged with governance with a statement that we have complied with the
ethical and independence requirements applicable in Italy, and we have communicated them all
matters that may reasonably be thought to bear on our independence, and where applicable, the
actions taken to eliminate relevant risks or the safeguard measures applied.
From the matters communicated with those charged with governance, we have determined those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We have described these matters in our auditor’s report.
Additional information pursuant to article 10 of EU Regulation n. 537/14
The shareholders of TIM S.p.A., in the general meeting held on March 29, 2019, engaged us to
perform the audits of the separate and consolidated financial statements for each of the years ending
December 31, 2019 to December 31, 2027.
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU
Regulation n. 537/2014, and that we have remained independent of the Company in conducting the
audit.
We confirm that the opinion on the separate financial statements included in this report is consistent
with the content of the additional report to the audit committee (Collegio Sindacale) in their capacity
as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/2014.
Report on compliance with other legal and regulatory requirements
Opinion on the compliance with Delegated Regulation (EU) 2019/815
The Directors of TIM S.p.A. are responsible for applying the provisions of the European Commission
Delegated Regulations (EU) 2019/815 for the regulatory technical standards on the specification of a
single electronic reporting format (ESEF – European Single Electronic Format) (the “Delegated
Regulation”) to the separate financial statements as of December 31, 2024, to be included in the
annual financial report.
We have performed the procedures under the auditing standard SA Italia n. 700B, in order to express
an opinion on the compliance of the separate financial statements as at December 31, 2024 with the
provisions of the Delegated Regulation.
In our opinion, the separate financial statements as at December 31, 2024 have been prepared in the
XHTML format and have been marked-up, in all material aspects, in compliance with the provisions of
the Delegated Regulation.
Opinion and statement pursuant to article 14, paragraph 2, subparagraph e), e-bis)
and e-ter) of Legislative Decree n. 39 dated 27 January 2010 and pursuant to
article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998
The Directors of TIM S.p.A. are responsible for the preparation of the Report on Operations and of the
Report on Corporate Governance and Ownership Structure of TIM S.p.A. as at December 31, 2024,
including their consistency with the related separate financial statements and their compliance with
the applicable laws and regulations.
We have performed the procedures required under audit standard SA Italia n. 720B, in order to:
express an opinion on the consistency of the Report on Operations and of specific
information included in the Report on Corporate Governance and Ownership Structure as
provided for by article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February
1998, with the separate financial statements;
express an opinion of the compliance with the laws and regulations of the Report on
Operations, excluding the section related to the consolidated sustainability information, and
the above mentioned specific information included in the Report on Corporate Governance
and Ownership Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n.
58, dated 24 February 1998;
issue a statement on any material misstatement in the Report on Operations and in certain
specific information contained in the Report on Corporate Governance and Ownership
Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24
February 1998.
In our opinion, the Report on Operations and the specific information contained in the Report on
Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of
Legislative Decree n. 58, dated 24 February 1998, are consistent with the separate financial
statements of TIM S.p.A. as at December 31, 2024.
Furthermore, in our opinion, the Report on Operations, excluding the section related to the
consolidated sustainability information, and the specific information contained in the Report on
Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of
Legislative Decree n. 58, dated 24 February 1998, comply with the applicable laws and regulations.
With reference to the statement required by art. 14, paragraph 2, subparagraph e-ter), of Legislative
Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and
its environment obtained through our audit, we have no matters to report.
Our opinion on compliance with applicable laws and regulations does not extend to the section of the
Report on Operations related to consolidated sustainability information. The conclusion on the
compliance of this section with the applicable standards governing its preparation criteria and the
compliance with the disclosure requirements pursuant to article 8 of (EU) Regulation 2020/852 are
formulated by us in the attestation report pursuant to article 14-bis of Legislative Decree No. 39
dated 27 January 2010.
Turin, March 24, 2025
EY S.p.A.
Signed by: Ettore Abate, Auditor
As disclosed by the Directors, the accompanying separate financial statements of TIM S.p.A.
constitute a non-official version which is not compliant with the provisions of the Commission
Delegated Regulation (EU) 2019/815. This independent auditor’s report has been translated into the
English language solely for the convenience of international readers. Accordingly, only the original
text in Italian language is authoritative.
INFOR
MA
TION
GLOSSARY
The following explanations are not intended as technical definitions, but are to support the reader in
understanding some of the terms used in this Annual Report.
2G (Second-Generation Mobile System)
Second-generation digital mobile systems, including GSM, D-AMPS (TDMA) and CDMA. 2G networks are
currently used throughout Europe and in other parts of the world. These protocols support voice services,
limited data communication, and ancillary services such as fax and SMS.
3G (Third-Generation Mobile System)
The third-generation mobile system is designed to provide high-speed and continuous-access data services
and higher-capacity voice services. 3G technology enables the transfer of traditional personal communication
services (telephony, messaging) and data (such as downloading online information, email exchange and
instant messaging). The high data speeds (measured in Mbps) are significantly higher than 2G and allow video-
viewing and high speed internet access on mobiles. 3G technology standards include UMTS, which is based on
WCDMA technology (the two terms are often used interchangeably), and CDMA2000. TIM switched off its 3G
system in 2023.
3GPP (Third-Generation Partnership Project)
The 3rd Generation Partnership Project (3GPP) brings together seven telecommunications standards
organizations (ARIB, ATIS, CCSA, ETSI, TSDSI, TTA, TTC), known as “Organizational Partners”, to provide their
members with a stable environment to produce the reports and specifications defining 3GPP technologies.
3GPP specifications cover cellular telecommunications technologies, including radio access, core network, and
service capabilities, which provide a complete description of the mobile telecommunications system.
3GSO (Third Generation Switch Off)
The switch-off of the 3G system, which has already been carried out by various operators around the world.
TIM did so in 2023. The frequencies used have been made available to the newest systems to ensure greater
coverage and capacity, while at the same time respecting electromagnetic limits.
4G (Fourth-Generation Mobile System)
Fourth-generation mobile systems are designed to provide a variety of devices, such as laptops with wireless
modems, smartphones, tablets and other mobile devices, with all previous services plus ultra-broadband
mobile internet access. Current and potential applications include web access, IP telephony, games, high-
definition TV, video conferencing, Internet of Things, and cloud computing applications. 4G standards include
LTE and LTE-A (LTE-Advanced) systems. LTE enables a download transmission speed of up to 150 Mbit/s per
cell (on 20 MHz bandwidth) with greatly improved latency values; LTE enables services highly interactive
services (e.g. gaming, videoconferencing). The upgrade to LTE, which is called “LTE Advanced” and is already
in use, allows for even greater transmission speeds.
4K or UHD (Ultra High Definition)
4K, also known as Ultra HD (a name coined by the Blu-ray Disc Association), is a digital television, digital
cinema and computer graphics resolution standard. 4K refers to a television resolution of 3,840 x 2,160 pixels.
This is four times the resolution of a Full-HD television; The higher pixel density produces a clearer, cleaner, and
better-defined image, with greater detail and texture. This will be followed by 8K, which will be 4 times higher.
5G (Fifth-Generation Mobile System)
The term 5G indicates the set of fifth-generation mobile technology standards that are significantly more
evolved than 4G/IMT-Advanced technology. Its global distribution began in 2019. The main characteristics of
the 5G network are:
■
higher bit-rates on larger bandwidths than previous systems (capacities up to tens of Gbit/s on hundreds of
MHz) to ensure higher-quality performance for innovative services such as Virtual Reality, Industry 4.0 etc;
■
very low latency, in the order of milliseconds;
■
ability to simultaneously connect hundreds of thousands of objects within the Internet of Things: from
wearable technologies to automatic traffic control systems, from assisted vehicle driving to home
automation.
■
ability to connect from high-speed moving vehicles.
5G Core
This is the core segment of 5G networks, which is designed to be cloud-native. The interaction paradigm
between its components (Network Function) is based on service exposure in a similar way to what happens for
Web Services. The new 5G Core also introduces new orchestration capabilities and new features such as
Network Slicing, support for edge computing and the service exposure to third parties.
5G NR (5G New Radio)
The new 5G radio access technology (RAT) ensures better performance. See 5G SA and 5GNSA.
Other information
Glossary
570
5G NSA (5G Non-Stand-Alone)
5G Non-Stand-Alone (NSA). Non-Stand-Alone (NSA) mode refers to a 5G NR deployment option in which NR
works collaboratively with LTE access.
5G SA (5G Standalone)
5G standalone (SA). Standalone mode (SA) refers to a 5G deployment option based on a single 5G radio access
technology (i.e. NR or LTE), without cooperation with a second access technology, connected to a 5G Core
Network.
6G
6G is the next generation of mobile networks, designed to offer ultra-high speeds, extremely low latency and
ubiquitous connectivity. 6G will support advanced applications such as distributed artificial intelligence,
extended reality (XR) and immersive communications, revolutionizing sectors such as health, industry and
entertainment.
Access Charge
Amount charged by national operators for the use of their network by operators of other networks, also known
as an “interconnection fee”.
ABR (Adaptive Bitrate) Streaming
Adaptive bitrate streaming or ABR streaming, sometimes abbreviated as ABS, is a technique for dynamically
adjusting the compression level and video quality of a stream to match bandwidth availability.
ADS (American Depositary Shares) / ADR (American Depositary Receipt)
Instruments used for the listing of shares on the New York Stock Exchange (NYSE).
ADSL (Asymmetric Digital Subscriber Line)
Technology which, via a modem, transforms traditional wire-pair telephone lines into a high-speed digital
connection line for the transfer of multimedia data. ADSL is used to achieve asymmetric broadband
transmission.
Availability (or Reliability) (A)
The probability of an object performing a required function under certain operating conditions and at a given
instant of time.
AGCOM (Italian Communications Authority)
Agile
In software engineering, “agile” mode (or agile software development) refers to a set of software development
methods that are opposed to traditional models such as waterfall models; Agile methods propose a less
structured approach aimed at delivering working, quality software to the customer quickly and frequently. The
practices promoted by agile methods, now generally referring to the Project Management of not exclusively
software products, include the formation of small, multi-functional and self-organized development teams,
iterative and incremental development, adaptive planning, and the direct and continuous involvement of the
customer in the product development process.
AON (Active Optical Network)
An optical distribution network based on active devices. This was used for the first optical networks in the
2000s and then replaced by PON.
API (Application Programming Interface)
APIs (Application Programming Interfaces) are programming interfaces consisting of software libraries
available for a given programming language, which are used to interact with other programs and extend
platform functionality, making them interoperable and open to different implementations.
AR (Augmented Reality)
The reality that surrounds us, enriched with additional content such as images, videos, 3D models, and so on,
viewed through mobile devices.
ASN (Autonomous System Number)
ASN is a globally available unique identifier that allows an autonomous system to exchange routing
information with other systems.
White / Gray / Black Areas
The distinction between white, gray and black areas is important for assessing State aid supporting the
development of ultra broadband networks and the compatibility of the aid with Community legislation. This
classification is contained in the European Union Guidelines:
■
White areas are areas without ultra broadband networks, where private investors do not intend to invest in
the next three years;
■
Gray areas are areas where an ultra broadband network is present or will be developed in the next three
years by a single private operator.
■
Black areas are areas where at least two ultra Broadband networks of different operators are present or
will be developed over the next three years.
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ATM (Asynchronous Transfer Mode)
The network protocol through which data is transferred by encapsulating data in units, called cells, of fixed
length (53 bytes) instead of in variable-length packets as is the case in packet-switching networks.
Avatar
The digital representation of a person which, in XR, allows them to interact with the environment and with
other people.
Automation
Automation identifies technologies which automatically manage equipment, systems and processes, reducing
the need for human intervention and facilitating network setup and operation activities.
Broadband
This comprises network technologies that allow a transmission speed of at least 2 Mbit/s to be achieved. These
speeds are made available both on the fixed copper network, starting with ADSL technology, and on the
mobile network starting with 3G systems. Broadband services include both data and voice services. Data
services include fast Internet access, the ability to download audio and video files, point-to-point and multi-
point interactive video services (video call and video conference), video on demand and (download and
streaming) television programs.
Ultra Broadband
This comprises all network technologies enabling connectivity to be offered from 30 Mbit/s to Gbit/s. The
definition is linked to the characteristics of the fixed and mobile access network. By increasing capacity and
speed, ultra broadband allows users to access the content available on the network more quickly (and from
several users at the same time) and to take advantage of video services up to ultra HD quality and interactive
gaming.
■
Fixed Ultra Broadband: comprises optical fiber access technologies, known as FTTx.
■
Mobile Ultra Broadband: refers to the use of the HSPA mobile network (evolution of the 3G network), LTE
and its upgrades, and the 5G network.
Backhauling
The interface between the radio access node and the core network.
Backbone
The backbone is the part of the telecommunications network that supports long-distance connections, which
aggregate large amounts of traffic and from which the branches of the network necessary to serve certain
local areas extend.
Big Data
Big data is a term used to describe the set of technologies and methods for analyzing mass data. The term
indicates the ability to extrapolate, analyze and interrelate an enormous amount of heterogeneous, structured
and unstructured data to discover the links between different phenomena and predict future ones.
Bitstream Access
A wholesale interconnection service that consists in the supply by the dominant telecommunications operator
(the incumbent) of the access transmission capacity between an end customer’s station and an
interconnection point of another OLO operator.
Blockchain
Blockchain is an innovative data and information structuring technology with network sharing; a blockchain
system is similar to a distributed database or virtual register, structured as a chain of blocks (hence the term
blockchain) containing transactions; the blockchain is validated by a consensus mechanism distributed on all
the nodes of the network participating in the chain. The main characteristics of blockchains are the
immutability of the chain, the traceability of transactions and security based on advanced cryptographic
techniques that are robust to cyberattacks. Blockchain technologies are currently used to support global supply
chains, financial transactions (e.g. Bitcoin), accounting assets and distributed social networks.
BRAS (Broadband Access Server) - BNG (Broadband Network Gateway)
Also referred to as BNG, this is a device that manages fixed broadband users’ access sessions or authenticates
users, acts as a termination of logical connections originated by user devices, produces taxation data, and can
apply management rules (policies) and techniques for QoS.
Broadcast
Simultaneous transmission of information and content to all nodes or devices of a network.
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BSC (Base Station Controller)
A 2G radio access network control node and an interface with the MSC switching system. The BSC supervises
and controlling radio resources both during call or data connection and during the call or data maintenance
phase.
BSS (Business Support System)
The system used by network operators to manage business processes such as invoicing, sales management,
customer service management and customer databases.
BTS (Base Transceiver Station)
A base radio station that transmits and receives GSM radio signals through appropriate antennas, providing
coverage in an area organized in one or more “cells” through one or more radio transmitters (TRX). Commonly
known as a “repeater”, in reality it does not “repeat” any signal as would be the case of radio bridges, but
generates the signal and transmits it in ether. BTS also encrypts GSM communications.
Bundle
A commercial offer characterized by several telecommunications services (e.g. telephony, broadband internet
access, television services over IP protocol, others) being jointly proposed by an operator with a single
commercial brand. A Dual Play bundle refers to when the bundle combines a fixed telephone service and
broadband internet access; A Triple Play bundle is where the Dual Play bundle is integrated with IP protocol
television content (IPTV); A Quadruple Play bundle is where integrated mobile phone services are added to the
Triple Play bundle.
Bypass
Unlike COLT, these are circuits currently devoid of active equipment for collecting NGAN customers, which in
long-term plans may be abandoned (after migrating the legacy customers collected there).
CaaS (Container as a Service)
In a Cloud CaaS offer, a consumer flexibly and dynamically acquires an environment (typically based on
Kubernates technology) in which containers can be developed, from a Cloud Provider. The CaaS environment
manages the container lifecycle and the related scaling-up and upgrade needs in line with shared policies
Caching
The caching of web content (videos, HTML pages, images, etc.) is a technology that reduces bandwidth usage
and the time spent accessing content. A cache stores copies of documents requested by users in locations
closer to them than the original sites, so that subsequent requests can be fulfilled by the cache itself, under
suitable conditions. The enabling technology can be open and standards-based (Open Caching) or on a
proprietary and closed approach (Alien Caching)
Channel
A communication route that connects a source to one or more destinations using transmission media and
electrical, electromagnetic, optical or other signals.
Carrier
A telecommunications operator that provides a transportation service for communication services through its
own network.
Carrier Aggregation
Technique for aggregating multiple radio carriers and consequently increasing the transmission speed on a
wireless network.
CAS (Conditional Access Systems)
Conditional access systems are used by content providers, such as pay-TV operators, to ensure that only
subscribers’ devices that meet certain conditions can access protected content. Conditional access systems
work by encrypting digital transport streams (pay-TV content) and sending permissions to decrypt the content
separately.
CAT M1 (Category M1) or LTE Cat-M
Cat-M1, also known as LTE Cat-M, is a low-cost LPWAN technology developed by 3GPP as part of release 13 of
the LTE standard. The technology is complementary to NB IOT, with upload and download speeds faster than
1 Mbps and lower latency of 10 to 15 ms.
CCA (Current Cost Accounting)
With a current cost accounting (CCA) approach, the manager's asset base has been annualized based on the
gross replacement cost of the assets. CCA belongs to the family of constant annualization methods in which
amortization rate is stable and the cost of capital decreases over time, with a consequent reduction in income.
However, unlike accounting at historical cost, the annualization of amortization is adjusted based on price
changes of the assets under consideration due to technical progress and general price changes (inflation).
CDMA (Code Division Multiple Access)
CDMA is a multiple access technology used in radio communications. The first CDMA-based radio systems
were developed by Qualcomm, and introduced commercially in 1995. It enables the same channel to be used
simultaneously to transmit multiple signals, each of which is modulated through an appropriate code to
distinguish one message from another.
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573
CDN (Content Delivery Network)
Content delivery networks are content distribution systems (particularly bandwidth-intensive multimedia
content, such as IPTV) managed by a Service Provider for the provision of audio and video streaming services,
offering better quality to customers.
CDP (Carbon Disclosure Project)
An international initiative that encourages companies to focus on managing climate change risks and
opportunities.
Cell
A geographical area covered by a radio station.
EMF (Electromagnetic Field exposure limits)
Electromagnetic fields are present everywhere and are produced both from natural sources (storms, terrestrial
magnetism) and from anthropogenic origins such as power lines, TV stations, mobile radio stations and
microwave ovens. Their effects on the human body depend on their frequency. For radio frequency fields such
as those produced by radio base stations and mobile devices, the greatest biological effect is the heating of
body tissues. The current position of the scientific community, as expressed by the World Health Organization,
is that while exposure to high levels of EMFs is harmful to health, it is not proven that prolonged exposure to
low levels of EMFs can be harmful.
The definition of which levels are low enough not to be harmful is left to individual countries, even though
guidelines have been defined by the International Commission on Non-Ionizing Radiation Protection (ICNIRP).
As far as Italy is concerned, the exposure limit is 20 V/m; an “attention threshold” of 6 V/m, averaged over 24
hours, is also defined for homes, schools, playgrounds and all places where individuals stay for more than 4
hours a day.
Central Office
A Central Office is a building from which the copper or fiber lines that form the access network and which
reach customers originate. It houses equipment for telephone services (Line Phase in TIM terminology), for
broadband data services (DSLAM) and potentially for ultra broadband services (OLT). Some Central Offices also
host higher-ranking devices (SGU for telephony, routers for data services), in which case they also collect the
other COs that do not have them.
Central Unit (CU)
A logical node housing PDCP, RRC and SDAP protocols and other control functions based on a higher layer
functional split.
CI/CD (Continuous Integration/Continuous Delivery)
In software engineering, CI/CD or CICD are the combined practices of continuous integration (CI) and (more
often) continuous delivery or (less often) continuous distribution. CI/CD bridges the gap between teams and
their development and operational activities by applying automation to the creation, testing, and deployment
of applications.
Closed User Group
A group of users that can send or receive communication services only within the same group, to which
dedicated rates can be applied.
Cloud
Cloud is an abbreviation of “Cloud Computing”, which refers to a model of network use of IT resources (for
example networks, servers, memory, applications and services); in the Cloud, the end customer (or consumer)
is allowed broad, easy and on-demand access to a shared and configurable set of resources that can be
acquired and released quickly and with minimal management effort or interaction with the service provider.
The Cloud model has five essential characteristics: 1) Self-Service on the customer’s request, 2) extensive
network access, 3) resource sharing, 4) resilience/automation in resource requests, 5) certified SLAs, three
service modes (see SaaS, PaaS and IaaS) and four distribution/deployment models (private, public, hybrid
cloud and through communities).
Cloud Continuum
A cloud composed of centralized edge-distributed presence points which constitute a single cloud
infrastructure.
Hybrid Cloud
A cloud solution consisting of private and public resources.
Native Cloud
A native cloud refers to an application-building approach which allows for the full use of the cloud paradigm
(see Cloud).
CNI (Cloud Native Infrastructure)
CNI is the set of hardware and software that runs and supports Cloud Native applications.
CNF (Cloud Native Function)
A virtualized network function on commercial off-the-shelf (COTS) hardware, hosted on Telco Data Center or
Public Cloud, with flexible and dynamic capacity, use of Containers and Micro Services, and automated LCM.
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574
ONC (Optical Nodal Center)
This is the flexibility point in PON architecture and separates the primary optical network from the secondary
optical network. The ONC houses the optical splitters connected to the passive fiber optic network.
Cogeneration
Cogeneration is the joint production of electrical (or mechanical) energy and useful heat from the same
primary source. Cogeneration (using the same fuel for two different uses) is aimed at a more efficient use of
primary energy, with relative economic savings, especially in production processes where there is a strong
contemporaneity between electrical and thermal sampling.
Cognitive Computing
An advanced artificial intelligence system in which machines have parts of the typical functions of a human
brain. The technologies that make up cognitive computing are capable of processing enormous amounts of
information, learning autonomously, interacting in human language and reproducing human thought patterns.
COLT (Central Office Long Term)
A central office that, in long-term transformation plans, remains necessary to collect NGAN customers through
a fiber optic distribution network.
Community
A group of people who have any kind of interest in common and exchange messages on the internet (e.g.
through social media).
Connected Car
A connected car is a vehicle which, in addition to having internet access, has sensors and can send and receive
signals to explore the surrounding environment and get in touch with other vehicles and services.
Container
A container is an abstract software unit that is executable and independent, with everything needed to run an
application: code, runtimes, tools and system libraries. Each running container is reproducible. Containers allow
applications to be decoupled from the host infrastructure on which they run. This approach makes it easier to
deploy in the cloud or in different operating systems.
Co-siting
Agreements for the sharing of technological sites (for ICT, network access sites and passive infrastructures) by
multiple actors, for a more efficient use of network infrastructures both in urban areas and in rural areas.
CO2 – Carbon Dioxide
Carbon dioxide is one of the most important greenhouse gases. It can be traced back to industrial processes as
a product of combustion, in particular from the use of fossil fuels.
CMS (Content Management System)
A content management system, often abbreviated to CMS, is software that helps users create, manage, and
modify the contents of a website without the need for specialized technical knowledge.
CPE (Customer Premise Equipment)
Customer Premise Equipment is a user-side electronic telecommunications device (terminal, telephone,
modem) that can connect directly to the geographical transmission network through appropriate interfaces.
The connection between the CPE and the network can be built on a physical carrier (optical fiber, telephone
wire pair) or on a radio carrier (wireless).
Choreography
In the context of IT architectures, this term refers to the coordination and organization of interactions between
different software components or systems. Choreography is a design pattern that enables the development of
distributed systems where components interact with each other through a set of well-defined interfaces,
without relying on a central authority or coordinator.
COTS (Commercial Off-The-Shelf)
A software and/or hardware product that is commercially ready and available for sale, rental, or license to the
public.
CPS (Carrier Pre-Selection)
Within the framework of the Equal Access policy guaranteed for all operators, CPS (Carrier Pre-Selection) is a
telephone network service that allows permanent call-routing to the preferred operator with which all calls are
made. This function must be implemented by the access operator in their control panels.
CPU (Central Processing Unit)
The CPU (central processing unit) is the HW component that controls the interpretation and execution of
instructions. A PC's CPU consists of a single microprocessor. The term “processor” is often used to refer to a
CPU.
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575
C-RAN
It refers to a centralized cloud RAN, a paradigm dealing with centralized computing, collaborative radio, real-
time cloud computing, and energy efficient infrastructure. This architecture aggregates the computational
resources of base stations into a central pool, allowing for better radio coordination. C-RAN exploits software-
defined networking (SDN) and network function virtualization (NFV) techniques, as well as data center
processing capabilities to allow the separation of control planes and data and to achieve high flexibility by
allowing network resources to be shared dynamically.
Cybersecurity
Cybersecurity deals with the analysis of threats, vulnerabilities and risk associated with the use of IT tools,
hardware, software and data connected to the Internet to protect them from attempted attacks such as:
alteration, disabling, theft, destruction, unauthorized access.
DAM (Digital Asset Management)
Digital asset management (DAM) is the integrated system for the centralized strategic content management.
This software allows content to be created, organized and distributed on different channels such as websites
and applications, and increases the effectiveness of communication.
DAS (Distributed Antenna System)
This is a network of distributed antennas that is connected to a signal source to provide wireless services in a
geographical area or a building. The radio frequency signal is combined and distributed through the antenna
system.
Data Center
The Data Center is the department of a company that hosts and manages backend IT systems and data
archives: its mainframes, servers, databases, etc. In the past, this type of management was located in a single
physical location, hence the name of data center. The development of new distributed computing technologies
has brought in new management criteria, which has led to the existence of more than one physically and
virtually located data center.
Data Governance
A set of processes, policies, roles and standards designed to guarantee the effective, secure and compliant
management of data management within an organization by ensuring the quality, integrity and optimal use of
data to support strategic and operational decision-making.
Data Lake
A data lake is a centralized repository in which large volumes of data (structured or unstructured) from various
sources are stored.
Data Mining
The process of discovering models and insights from large data sets using statistical and machine learning
techniques.
Data Warehousing (DW)
A method for collecting and storing large amounts of data in a central location for analysis and reporting.
DCC (Digital Contact Center)
A set of platforms used to connect the customer with the human or virtual customer care agent most suited to
the customer’s needs, through different channels (voice, web, apps, mail, chat, SMS), and to help agents
interact with customers (e.g. voice orders, back office).
DDoS (Distributed Denial of Service)
An attempt to make a networked computer resource (system/service) no longer available to users. Attacks of
this type seek to saturate the network and computer resources available to the target system of the attack,
such as a website, to the point of making it no longer able to provide the service.
Decommissioning
The disposal of older (legacy or obsolete) technological solutions in order to rationalize and simplify current
telecommunications networks with the aim of optimizing investments and improving the quality and time-to-
market of services.
Deep Learning
A subset of machine learning that involves training multi-layered neural networks on large amounts of data.
DevOps
In computer science, DevOps (a contraction of Development and Operations) indicates an agile method of
software development targeted communication, collaboration and integration between developers and
operations personnel. DevOps is therefore an approach to developing and implementing applications in the
company that aims for the release of the product, the testing of software, evolution and maintenance
(correction of bugs and minor releases) in order to increase reliability and security and to speed up
development and release cycles.
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Digital divide
The technological gap that may exist for territorial reasons in some geographical areas where people do not
have effective access to digital technology, such as fixed broadband services. The Digital Divide also refers to
the economic or cultural barriers that certain sections of the population have in accessing digital services.
Distributed Unit (DU)
A logical node hosting RLC/MAC/High-PHY protocols based on a lower layer functional split.
DLA (Data Layered Architecture)
An architecture to manage user data in a telecommunications network in real time (e.g. user profiles), which
introduces a separation between a logically centralized data storage layer, which is responsible for the
consistency and availability of the data, and a front-end layer that manages the requests coming from
network devices.
DNS
The record containing numerical IP addresses (for example 123.456.789.0) associated with alphanumeric
addresses (nome.cognome@dominio.com) commonly used to identify a website or email address.
DPI (Deep Packet Inspection)
Real-time packet traffic analysis technology that observes “in depth” the content of packets “in depth”; i.e. up
to application level, rather than only up to IP/TCP/UDP header level. It enables advanced traffic management.
DRM (Digital Rights Management)
Digital rights management is a way to protect copyrights to digital media and content. This approach involves
technologies that restrict the copying, reproduction, and use of copyrighted works, protected content, and
proprietary software.
DSL Network (Digital Subscriber Line Network)
A family of network technologies that provides wide-bandwidth digital transmission at limited distances
through the traditional copper telephone pair from the first switching center to the end user.
DSLAM (Digital Subscriber Line Access Multiplexer)
Digital Access Line Multiplier Equipment: processes digital signals from different customers whose lines are
equipped with xDSL technologies, and multiplies their communications on a high-speed connection to the
internet backbone.
DSS (Dynamic Spectrum Sharing)
A new antenna technology that, for the first time, allows the parallel use of LTE and 5G in the same frequency
band. This technology drives real-time demand for 5G and LTE.
DTT (Digital Terrestrial TV)
Digital terrestrial TV is a type of transmission technology that allows greater efficiency in the transmission of
television services (in terms of number of channels and image quality) through the use of a digital system.
DVB-H (Digital Video Broadcasting-Handheld)
DVBH is a digital broadcast video transmission standard optimized for mobile networks on portable devices,
such as mobile phones and smartphones.
DWDM (Dense Wavelength Division Multiplexing)
This technology multiplies and simultaneously transmits optical signals with different wavelengths along a
single optical fiber in order to increase the available bandwidth.
EDGE (Enhanced Data for GSM Evolution)
This technology increases the data transmission rate of the GPRS standard from 30-40 kbit/s to more than 400
kbit/s under optimal radio transmission conditions.
Edge (Network Edge)
A network segment located between the access and main network, where service functions (such as those
performed by BRAS) are located. Depending on the environment, this segment can be highly distributed (e.g.
up to mobile Base Station level) or less distributed (e.g. on the network backbone edge).
Edge Cloud
A cloud infrastructure distributed at the network edges. Edge cloud architecture is used to decentralize
computing power at the network edges.
EEB (Energy Efficiency in Buildings)
An international initiative promoted by the WBCSD (World Business Council for Sustainable Development) for
researching energy efficiency in buildings in order to reduce environmental impact and energy costs.
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EFFC (Extraction Full Free Cooling)
A cooling system that reduces consumption without using greenhouse gases. EFFC is based on the free-
cooling principle (forced ventilation without the use of air conditioning) and linked to a system extracting the
hot air produced by equipment and additional (adiabatic) cooling of incoming air, and is obtained by exploiting
an area with a high concentration of nebulized water.
eMBB (Enhanced Mobile Broadband)
Mobile broadband data service on the LTE-A network, 5G.
EMS (Environmental Management Systems)
Environmental management systems enable the sustainable management of production and support
processes, and promote the continuous improvement of environmental performance, These tools ensure
effective management, prevention and continuous reduction of environmental impacts in work processes.
eNB (Evolved Node B)
The 4G Base Station which implements the LTE radio interface and manages its radio resources.
EPC (Evolved Packet Core)
The core segment of a 4G network. It manages user mobility, routs traffic (since 4G is only packet traffic),
applies criteria, produces taxation data and interconnects with IP networks.
EPC NSA (Evolved Packet Core Non Standalone)
Core network mobile 4G capable of supporting dual-connected LTE and New Radio accesses.
EPG (Electronic Program Guide)
Electronic programming guides are systems that provide television, radio and other multimedia application
users with continuously updated menus that display programming information for scheduling of current and
future broadcasts
EPON (Ethernet PON)
Also known as Gigabit Ethernet PON or GEPON, this is a type of pure optical fiber that uses a symmetric
pattern both downstream and upstream and can reach a maximum of 10 Gigabits per second of transmission.
This solution is IEEE-standardized.
EPS (External Power Supplies)
External power supplies for equipment.
ESG (Environmental, Social and Governance)
ESG is a strategic framework for identifying, evaluating and addressing organizational objectives and activities
ranging from a company’s carbon footprint and commitment to sustainability, diversity and inclusion, to
ethical risk management and business practices.
eSIM (embedded SIM)
This is an evolution of SIMs: an integrated circuit incorporated directly into a device and therefore not
removable and not replaceable, but which can be managed remotely through the functionality of the device
itself.
Ethernet
A family of high-speed data link technologies for local area networks (LANs) and metropolitan area networks
(MANs).
ETSI
The European Telecommunications Standards Institute.
EuP (Energy-using Products)
Falling within the Eco-design Directive for Energy-using Products (2005/32/EC), this is the regulatory framework
that energy-using devices must comply with from the design phase onwards to increase energy efficiency and
reduce the negative environmental impact of products.
Feeder
Carrier class IP routers that collect and concentrate fixed and mobile network traffic and commercial traffic for
a number of Central Areas. The traffic collected by feeders is delivered in double homing mode to Metro nodes
on physically diversified routes.
FDD Frequency Division Duplex
Frequency-division duplexing is a method for establishing a full duplex communication link, using two different
radio frequencies for transmitter and receiver operation. FDD normally assigns the transmitter and receiver to
different communication channels.
FFC – Full Free Cooling
A cooling system that uses forced ventilation to reduce energy consumption.
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Optical Fiber
An infrastructure for transmitting data through light signals, formed by glass or plastic filaments. Each fiber
cable contains several individual fibers, each capable of conveying the signal (light pulses) at a practically
unlimited bandwidth. Fiber is used for the construction of both optical communication backbones and for
access networks across multiple architectures (FTTx).
Fronthaul
Within the functional division of a Base Station, this refers to the interface between the Remote Unit (RU) and
Distributed Unit (DU).
FSC (Forest Stewardship Council)
The Forest Stewardship Council is an international non-profit NGO. The FSC is an internationally recognized
forest certification system. The certification aims to ensure proper forest management and traceability of
derived products. The FSC logo guarantees that a product has been made with raw materials from properly
managed forests according to two main standard principles: forest management and chain of custody. FSC
certification is an independent, third-party scheme.
FTTx (Fiber To The x)
This term is used to indicate any network architecture that uses fiber optic connections that partially or entirely
replace the traditional copper connection used in telecommunications networks. The different technological
implementations differ at the point of the distribution network where the fiber connection reaches the end
customer: in FTTC (Fiber to the Cabinet), the fiber terminates in the device (distribution cabinet) located on the
sidewalk, where the customer-end copper connections begin; in FTTB (Fiber to the Building), the fiber
terminates in a distribution box at the base of the building, where the vertical copper climb begins; in FTTH
(Fiber to the Home), the fiber terminates directly in the customer’s home. in FTTO (Fiber to the Office), the fiber
terminates in the Office; and in FTTR (Fiber To The Room), the fiber extends into different rooms of the home.
FWA (Fixed Wireless Access)
Fixed Wireless Access indicates a set of transmission systems developed to exploit certain frequencies of the
radio spectrum so as to provide fixed broadband access services (with a nominal connection speed of 1 Gbps).
Gateway
A node for the interconnection of different networks. A gateway node can perform a domain splitting function
between homogeneous networks or it can functionally interconnect different networks, thus performing
protocol interworking functions.
G.FAST (Fast Access to Subscriber Terminal)
G.FAST (group “G” of ITU-T recommendations) is a fourth-generation DSL standard over copper, adopted by
ITU-T in 2014, which allows aggregated downstream and upstream speeds of around 500 Mbit/s up to 100m
and of around 800-900 Mbit/s up to 50m.
Therefore, the technology has a higher speed than VDSL2 and eVDSL but, since it is optimized for very short
distances, it requires network devices to be positioned nearer to the customer than in distribution cabinets, or
indeed in the distribution boxes at or at the base of buildings.
GPON (Gigabit capable Passive Optical Network)
A passive optical network (PON) is a network architecture that brings fiber cabling into the customer’s home
using a point-to-multipoint scheme. It uses passive optical splitters to serve multiple rooms with a single
optical fiber. GPON is part of a set of PON standards (defined in the ITU framework), which differ by the
maximum overall speed attainable within each optical shaft, a structure often shared with 64 users. With
GPON, the maximum speed is around 2.5 Gbps downstream and 1.25 Gbps upstream, shared with a pre-
established number of users, which can be up to 128. The operator will then set the nominal maximum speed
for each of the connected lines (e.g. 1 Gbps download). Other types of GPON standards are:
■
XG-PON - maximum speed 10 Gbit/s downstream and 2.5 Gbit/s upstream
■
XGS-PON - maximum speed 10 Gbit/s downstream and 10 Gbit/s upstream
■
NG PON2 - maximum speed 40 Gbit/s downstream and 10 Gbit/s upstream
GPRS (General Packet Radio System)
A packet-switched system for data transmission over 2G cellular networks.
GPU (Graphics Processing Unit)
A specialized processor (or CPU) designed to accelerate the digital rendering of graphic objects.
GRI (Global Reporting Initiative)
A leading organization in the field of sustainability, the GRI promotes the adoption of sustainability reporting as
a way for organizations to contribute to sustainable development.
GRX (GPRS Roaming eXchange for Mobile Operators)
The GRX service allows mobile operators to interconnect GPRS networks around the world and to offer the
Global Roaming service for GPRS coverage.
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GSM (Global System for Mobile Communication)
The standard-based system for digital cellular communications developed worldwide and operating on 900
MHz and 1800 MHz bands. GSM is a second-generation (2G) system.
GSMA (GSM Association)
The GSMA (deriving from Global System for Mobile Communications, and originally Groupe Spécial Mobile) is
an industry organization that represents the interests of mobile network operators around the world.
HCFC (Hydrochlorofluorocarbons)
Compound chemical molecules used mainly in cooling systems to replace Chlorine Fluorocarbons. These are
prohibited by the Montreal Protocol due to their limited ozone depressant effect (their ozone damaging power
is about 10% of that of CFCs).
HCP (Hyperscale Cloud Provider)
A cloud infrastructure provider capable of mass-scaling resources over large quantities of globally distributed
servers.
HFC (Hydrofluorocarbons)
Hydrofluorocarbons: composite molecules in use in cooling systems. They are part of the greenhouse gas
family. They do not harm the ozone.
HDSL (High-bit-rate Digital Subscriber Line)
An xDSL technology standardized in 1994, it provides symmetric connections of up to 8 MB/s over pairs.
HLR (Home Location Register)
The database in which 2G and 3G customer profiles are registered.
Home Access Gateway – Access Gateway – Home Gateway – Residential Gateway
Domestic-use devices used to concentrate customer voice/data/video traffic for private telecommunication
networks and to connect household devices to the internet or other geographical networks (WAN).
Housing
The leasing of managed physical space within a Data Center for the installation of equipment or servers.
HSPA (High Speed Packet Access)
An evolution of UMTS, which allows downstream (HSDPA) and uplink (HSUPA) mobile broadband data
connections of up to 42 MB/s and 5.76 MB/s, respectively.
IaaS (Infrastructure as a Service)
With a Cloud IaaS offering (see also Cloud models), a consumer flexibly and dynamically acquires computing,
memory, network and other fundamental IT resources from a Cloud Provider, with which the customer can
develop and run arbitrary software, including operating systems and applications. The consumer does not
manage or control the underlying cloud infrastructure, but controls the operating systems, memory,
applications and possibly, to a limited extent, some network components (such as firewalls).
ICT (Information and Communication Technology)
The set of methods and technologies which form information transmission, reception and processing systems.
IEEE (Institute of Electrical and Electronics Engineers)
This international association of professional scientists aims to promote technological science and the research
of new applications and theories in electrotechnical, electronic, computer, biomedical and telecommunications
science. The Institute also defines and publishes standards in these fields.
IETF (Internet Engineering Task Force)
The IETF is an internet standardization organization that is responsible for the technical standards that
constitute the Internet Protocol Suite (TCP/IP).
IMS (IP Multimedia Subsystem)
The architecture for the creation of IP Multimedia services (i.e. voice/video/text/etc. communications over IP
networks). It includes all network elements relating to reporting and media flow processing.
IMSI (International Mobile Subscriber Identity)
A globally unique identifier linked to a SIM card.
Unavailability (U)
The likelihood that an object will be unable to perform a required function under certain operating conditions
and at a given instant in time.
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Artificial Intelligence
The ability of a technological system to solve problems and carry out tasks and activities typical of the human
mind and behavior. In the field of IT, this discipline is concerned with creating machinery (hardware and
software) that is capable of “acting” autonomously (solving problems, performing actions, etc.).
Generative Artificial Intelligence
This term refers to Deep Learning models capable of generating high-quality texts, images and other content
based on the data they have been trained on.
Interconnection
The physical and logical connection of different operators’ public communication networks, aimed at allowing
the users of one operator to communicate with the users of the same or another operator, or to access the
services offered by another operator.
Internet
The global interconnection network between computer networks of different natures and extensions, which is
made possible by a suite of common network protocols (TCP/IP) that constitute a common “language” with
which connected computers (hosts) connect and communicate with each other.
Internet of Things
This extends the internet to the world of objects (devices, equipment, plants and systems), which become
recognizable and acquire intelligence precisely because they can communicate data about themselves and
access aggregated information from others. This has many fields of application: from industrial applications
(production processes), to logistics and infomobility, and to energy efficiency, remote assistance and
environmental protection.
IP (Internet Protocol)
The packet-switching data transmission protocol used to transmit data on both private and public networks, in
particular on the internet. The IP address uniquely identifies a single element in the network. IPV4 uses 32-bit
addresses represented by 4 numbers (e.g., 192.168.1.1) with approximately 4.3 billion addresses in operation.
This has evolved into IPv6 (a necessity given the depletion of available IPv4 numbers), which uses 128-bit
addresses
represented
by
hexadecimal
numbers
separated
by
colons
(e.g.,
2001:0db8:85a3:0000:0000:8a2e:0370:7334), thus offering a huge number of addresses (about 340* 1036).
IPCC (IP Contact Center)
See DCC.
IPTV (Internet Protocol Television)
Technology that uses IP transport infrastructure to convey television content in digital format through a
broadband internet connection.
ISDN (Integrated Services Digital Network)
A digital telecommunications system that allows different services (e.g. voice and data) to be transmitted end
to end in digital form. The first technical definition of ISDN, which involves different components of networks,
dates back to the ITU-T recommendations, Series I of 1984.
ISO (International Organization for Standardization)
The world's leading organization for the definition of technical standards.
ISPs (Internet Service Provider)
A company that sells services to access the internet and World Wide Web.
ITU (International Telecommunication Union)
An international organization that defines telecommunications and radio wave standards. Founded in 1865 in
Paris, it is a specialized agency of the United Nations and its current headquarters are in Geneva.
J2C (Journey to Cloud)
A transition that aims to migrate business resources to the cloud, allowing reductions in IT costs and
greenhouse gas emissions, improvements in business results and a quicker pace of innovation.
Jitter
The variation in one or more signal characteristics, such as amplitude, frequency, phase or transmission delay.
KPI (Key Performance Indicator)
Measurable performance indicators which allow us to evaluate the performance of a given activity.
KPO (Key Performance Objectives)
Key Performance Objectives (KPOs) are measurable and specific goals that allow performance to be
evaluated.
KVAR (Kilovolt–Amperes Reactive)
A measurement system, expressed in kilovolts, for measuring the electrical current lost in an AC electrical
system.
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581
Kubernetes
An open source container orchestration platform, allowing scaled container management.
LAN (Local Area Network)
A computer network that covers a limited geographical area (e.g. a school or a company) and provides
telecommunication services and interconnection between terminals (e.g. PCs).
Lambda
The single optical channel on which the signal is transmitted over fiber optic networks.
Latency
The latency of a system can be defined as the interval of time that elapses between the moment when an
input reaches the system and the moment when its output is available. In other words, latency is simply a
measure of a system’s response speed.
LCA (Life Cycle Analysis)
An analytical methodology for assessing and quantifying the environmental impacts associated with a
product/process/activity throughout its entire life cycle, from the extraction and acquisition of raw materials to
recycling.
Local Aggregator (LA)
Carrier class IP routers that collect and concentrate fixed and mobile network traffic and commercial local
traffic for a number of Central Areas. The traffic collected by the local aggregators is delivered in double
homing mode to Metro nodes on physically diversified routes.
LLM (Large Language Model)
A type of Artificial Intelligence algorithm that uses deep learning techniques and large data sets to understand,
summarize, generate and predict new content.
LLU (Local Loop Unbundling)
The service that allows telephone operators other than Telecom Italia to rent the final part of the telephone
wire pair, that is, the copper cable that connects the Telecom Italia unit to the user location.
Local Loop (Telephone Pair)
The pair of copper wires through which a home or office connects to a telecommunications network; This is the
traditional technology for creating telephone access lines and is often called the 'last mile'.
LPWAN (Low-Power Wide Area Network)
A type of wireless telecommunication geographic network designed to allow long-range, low-bitrate
communication between connected battery-powered objects, such as sensors.
LTE (Long Term Evolution)
See 4G.
Machine Learning
The ability of computers to learn without having been explicitly and previously programmed.
MBB (Mobile Broadband)
The mobile broadband data service available on a 3G/4G-LTE network.
MEC (Multi-access Edge Computing)
Technology that allows edge devices, such as smartphones and IoT devices, to process data closer to the
source, reducing latency and improving performance.
ETSI MEC (Mobile Edge Computing)
A specific type of edge computing, standardized by ETSI, designed to meet the needs of mobile network
operators and their subscribers, providing low latency and high bandwidth services to mobile devices.
MEMS (Micro Electro-Mechanical Systems)
Miniature devices ranging from a few micrometers to a few millimeters in size which perform detection,
processing and implementation functions using electronic, mechanical, optical, chemical or biological
components, usually integrated on a hybrid silicon circuit.
MGCP (Media Gateway Control Protocol)
A signaling protocol that allows the management of multimedia functions and telephony conversion between
traditional telephone networks and VoIP services.
MGW (Media Gateway)
A device that processes different voice, data and video connections by adapting their encodings between
different technologies and protocols (e.g. from circuit to packet).
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582
Meter (M)
Carrier class IP routers that collect and concentrate fixed and mobile network traffic and commercial traffic for
the MAN area.
Microservices
When the term microservices is used in modern software application development, it refers to a specific
architectural model for developing a single application as a suite of small services, each identified as a
specialized processing process (e.g. a web server, a storage application, etc.) capable of communicating with
fast and streamlined mechanisms, often based on API interfaces for describing HTTP resources. These services
provide capabilities for developing a company’s business and are particularly suitable for creating software
products using agile methodologies; each microservice can be created and managed independently using fully
automated implementation algorithms, thus ensuring maximum flexibility in the development and
maintenance of applications.
Midhauling
Within the functional division of a Base Station, this refers to the interface between the Distributed Unit (DU)
and the Central Unit (CU).
MIMO (Multiple Input Multiple Output)
A set of techniques aimed at increasing the overall radio access band by simultaneous transmitting two (or
more) data signals on two (or more) placed antennas, using the same frequency resources. The receiving side,
also equipped with two or more antennas, is able to discriminate between the different data signals by
leveraging the differences in time and direction of arrival of the simultaneous signals, which are caused by
their propagation on multiple paths. In fact, multipath radio wave propagation (i.e. the fact that a signal from
point A reaches point B through multiple paths due to reflections and dispersions caused by objects such as
buildings and trees), once seen as a disturbance, is a natural phenomenon in radio communications. On the
other hand, MIMO techniques exploit this multiplicity of paths (using appropriate signal encodings) to increase
capacity.
mMTC (Massive Machine Type Communication)
Also known as MMC (Massive Machine Communication) communication, this type of communication occurs
between a huge number of machines over a wireless network on which data generation, information exchange
and implementation takes place with little or no human intervention.
mmWave (millimeter Wave)
Millimeter waves (often referred to as high-band 5G) are frequencies that start at 24 GHz and above. As radio
waves increase in frequency, each wave shrinks in length. Because of their high frequencies, mmWaves have a
limited range and struggle to penetrate buildings, but they have a high carrying capacity.
MOCN (Multi-Operator Core Network)
A technology that allows multiple mobile operators to share the same radio access network (antennae and
infrastructure) while maintaining separate core networks. This reduces costs, improves coverage and optimizes
the use of network resources.
MPEG (Moving Picture Experts Group)
A joint technical committee set up by international organizations ISO and IEC in 1988. It was created with the
aim of defining standards for the digital representation of audio, video and other types of multimedia content
to satisfy a wide variety of applications.
MPLS or IP/MPLS (Multiprotocol Label Switching)
An IP network technology that allows multiprotocol traffic flows to be routed between source and destination
nodes through the use of labels positioned between pairs of adjacent routers, with simple operations
performed on the labels.
MR (Mixed Reality)
Augmented reality (AR) with special visors to allow hands-free use.
MSC (MoVile Swiching Center)
A mobile network node that performs switching and control functions, such as call management, traffic
switching, billing, registration and authentication, acting as an interface with other networks.
Multimedia
A service or product that entails the simultaneous and interactive use of two or more mutually-integrating
communication media (e.g. voice, video, text, etc.).
Multicast ABR (Multicast Adaptive Bit Rate)
This technology encodes multicast video traffic into different streams at different bitrates according to the
channel conditions, making it possible to optimize user enjoyment and the use of network resources.
MVNO (Mobile Virtual Network Operator)
A mobile communication service provider that does not own the radio spectrum or network infrastructure, but
leases them from a third-party operator.
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583
NaaS (Network as a Service)
The provision of virtual network services by a network provider to a third party, such as a service provider that
is not equipped with geographically infrastructured network resources, or a medium/large customer who
requires basic or advanced connectivity resources on a public or shared network infrastructure. Some examples
of NaaS-model services are VPNs (virtual private networks), dynamic bandwidth (BoD) services and mobile
network virtualization. The spread of NaaS offerings today is increasingly supported by flexible network
virtualization models and the use of network programming and automation technologies such as SDN
(software defined networking).
Naked
“Naked line” refers to a copper access line devoid (hence naked) of a voice service. This line is dedicated
exclusively to data services.
NB IoT (NarrowBand Internet of Things)
A 3GPP specification that enables the Internet of Things by optimizing narrowband radio access with a view to
applying LTE technology to sensor networks. It provides a few small messages per day, a large coverage range
to reach basement meters, a very long battery life (10-year target), tens of thousands of connections per cell
and a very low module cost.
NEF Network Exposure Function
The NEF (Network Exposure Function) is related to 3GPP 5G architecture. This function provides a means to
securely expose the services and capabilities provided by 3GPP network functions.
Net Neutrality
The principle that internet service providers must treat all data equally and must not discriminate or
implement different charges according to the user, content, website, platform, application, type of equipment,
or method of communication.
NAT (Network Address Translation)
A technique used to map the IP addresses of devices on a private network to a single public IP address so as to
optimize the use of IP addresses and ensure security.
Network
A system of interconnected elements. In a telecommunications network, customer voice and data service
management devices and equipment are connected through a transmission system that uses optical fiber,
metal cables or radio connections.
Network Cap
See Price cap.
Network Slicing
When referring to 5G: the creation of multiple ad hoc logical networks segregated on the same physical
network infrastructure. Each “slice” is an isolated end-to-end network tailored to meet the different
requirements of a particular application.
Network to Cloud (N2C)
The process of porting network capabilities, which is typically implemented on premises, either physically or
virtually, in a public or private cloud.
Neural network
A type of machine learning algorithm that is modeled on the structure and function of the human brain.
NFT (Non-Fungible Token)
“Digital certificates” supported by blockchain technology, which aim to identify ownership of a digital product
in a unique, irreplaceable and non-replicable way.
NFV (Network Function Virtualization)
The NFV paradigm allows both fixed and mobile network functions to become software applications, called
VNFs (virtual network functions), which the operator can instantiate on commercial servers, thus leveraging
virtualization technologies and splitting the link between hardware and software present in today’s devices.
NGAN (New Generation Access Network)
A fixed access network built with different technological solutions, ranging from evolved ADSL to optical fiber
in the user's home (see FTTx).
NGDC (Next Generation Data Center)
A data center that uses physical concentration and server virtualization with the aim of reducing maintenance
and management costs and energy consumption and improving their efficiency.
NGN (Next Generation Network)
The next-generation network created by Telecom Italia to meet the demands of industry, public administration
and the general public. The new network architecture guarantees infrastructure that serves a variety of
offerings to increase the levels of customization and bandwidth availability, together with a wide variety of
access systems.
Other information
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584
NGNs (Non-Geographic Numbers)
Telephone numbers not associated with a particular geographical location (for example, higher rate services,
toll-free number, directory assistance services).
NG-RAN (Next Generation Radio Access Network)
An access network that includes NR (new radio) access technology.
Node
Generically indicates a communication and processing element within a network.
Node B (corresponds to BTS in GSM)
The base radio station in UMTS technology which, via the antenna, sends a radio signal to cover a cell
(generally 3 cells per Node B). It also performs functions that are closely associated with managing the radio
connection.
N-Play Offering
Customer offerings that include two or more fixed and mobile services in a single rate: voice, connectivity and
data traffic, video and TV services, value-added services (e.g. gaming).
NYSE
The New York Stock Exchange.
OAM (Operation, Administration and Maintenance)
The set of processes, activities, systems and standards involved in the operation, administration, and
maintenance of a system.
OAO (Other Authorised Operator)
Operators other than the dominant operator, which provide services to their customers using the dominant
operator's fixed access network.
ODF (Optical Distribution Frame)
A frame used to provide cable interconnections between communication structures, which can integrate fiber
splicing, fiber termination, fiber optic adapters and connectors, and cable connections together in a single unit.
OHSAS (Occupational Health and Safety Assessment Series)
The international standard that sets out the requirements that a management system must have to protect
the safety and health of workers.
OLOs (Other Licensed Operators)
Operators operating in the national telecommunications services market other than the dominant operator.
OLT (Optical Line Termination)
The optical element of the PON (Passive Optical Network) network, which acts as an interface between the
PON itself and the backbone network. The OLT is located at the central office location.
ONAP (Open Network Automation Platform)
The open source framework from the Linux Foundation, designed for the orchestration, management, and
automation of edge computing networks and services.
ONT (Optical Network Termination)
The optical element of the PON (Passive Optical Network) network, which acts as an interface between the
access gateway at the customer’s home and the OLT device in the central office. The OLT is located at the
customer’s location, is powered, receives and deciphers (and vice versa) the optical signal, and converts it into
an electrical signal (through an Ethernet output) that can be received by the access gateway.
ONU (Optical Network Unit)
Optical element of the Passive Optical Network (PON) that acts as an interface to the user access device or
distribution network to the users. The ONU is located in a distribution cabinet.
OPC (Optical Packet Core)
The national multiservice IP transport backbone (formerly called Optical Packet Backbone - OPB). It consists of
interconnected nodes called OPC (formerly OPB) nodes and the very high capacity connections existing
between them.
OPM (Optical Packet Metro)
A metro-regional collection network that provides Ethernet and IP connectivity for fixed and mobile network
traffic, as well as for Retail or Wholesale customers. It consists of IP routers distributed on three hierarchical
tiers of aggregation: Remote Feeder, Feeder and Metro. These are interconnected in double homing mode
through physically diversified two-way links (where possible).
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585
Open Source
Refers to software whose rights holders make the source code public, encouraging it to be freely studied and
allowing independent programmers to make modifications and extensions to it.
OTT (Over the Top) Operators
Operators offering content and services over the Internet without having ownership of the telecommunications
network infrastructure.
ORAN (Open Radio Access Network)
Also known as Open RAN, this architecture is used to create virtualized RAN on open hardware, with AI-based
integrated radio control. The architecture is based on well-defined, standardized interfaces to allow an open
and interoperable supply chain ecosystem, fully supporting and complementary to the standards promoted by
3GPP and other industry standards organizations.
Orchestration
The coordination of multiple automated activities into advanced workflows so that individual activities work in
concert to perform specific functions or processes.
OSS (Operations Support System)
Methods, procedures (automated and non-automated) and systems that directly support the function and
operation of telecommunications infrastructure.
OTN (Optical Transport Network)
A technology developed to enable the multiplication of digital signals which are to be carried over WDM links
and to obtain OAM performance of these signals similar to those available in SDH.
This allows a better use of WDM connections, making it possible to insert high-speed signals (e.g. 100 Gb/s) on
lambdas that can contain more lower-speed signals (e.g. 10 Gb/s) rather than having a dedicated lambda for
each lower-speed signal.
Outsourcing
Entrusting external parties to carry out business services and processes. Services that can be outsourced
include the design, construction or hosting of a network or of specific equipment belonging to a company and,
ultimately, the management of the entire telecommunications system.
PaaS (Platform as a Service)
One of the three cloud service models offered. With a PaaS offering from a cloud provider, the consumer is
able to distribute self-created applications or applications acquired by third parties on the cloud infrastructure
using programming languages, libraries, services and tools supported by the provider. The consumer does not
manage or control the underlying cloud infrastructure, including the network, server, operating systems,
memory, but has control over the applications and possibly over the hosting environment configurations.
Packet-Switched Services
Data services that use packet switching.
Pay-Per-View (PPV)
System in which the spectator pays to see a single program (such as a sporting event, film or concert) at the
time of its broadcast.
Pay TV
Pay television channels.
PBX (Private Branch Exchange)
Equipment for private telephone networks (also called Switchboard)
PCS (Personal Communications Services)
A set of wireless voice and/or data communication capabilities, which provide services similar to mobile phone
services.
PDH (Plesiochronous Digital Hierarchy)
A telecommunications network transmission technology (first standardized under ITU in 1988) designed to
transport large volumes of data through large scale digital networks.
PE (Provider Edge router)
The boundary device between a service provider's local network and that of a customer.
Peering
The voluntary interconnection between internet networks, belonging to different and administratively distinct
internet service providers, which allows users to exchange traffic between networks.
Market Penetration
The number of people (or subscribers) who buy a particular brand or category of good/service as a portion of
the total population for which the service is available.
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586
NRRP (National Recovery and Resilience Plan)
Platform
A running environment that includes hardware and software, applications and other tools to support the
running of programs.
PNF (Physical Network Function)
A network function on physical HW that is hosted in Telco locations: static capacity, management via Element
Manager.
PKI (Public Key Infrastructure)
A system used to manage digital certificates and public-private key pairs, and to protect electronic
communications and transactions.
PoC (Proof of Concept)
Also known as proof of principle, PoC is the realization of a particular method or idea to demonstrate its
viability, or an in-principle demonstration aimed at verifying that a particular concept or theory has practical
potential.
PON (Passive Optical Network)
The optical network usually used for point-to-multipoint architectures in which no elements or devices play an
“active” role in the section connecting the housing unit to the power plant; in other words, there are no devices
that require electrical supply.
POP (Point Of Presence)
A network access point (router), provided by an internet service provider (ISP) that is capable of routing traffic
to the end users connected to it.
POTS (Plain Old Telephone Service)
È il servizio di telefonia tradizionale (linea telefonica per la voce, servizi di telefonia fissa e accesso alla rete di
telefonia vocale pubblica).
Price-Cap
Identifies the maximum price limit established by the regulator at which a service/product can be sold.
Prpl (Purple standard)
The prpl (Purple) project is an open-source initiative that develops software to improve the connectivity and
security of smart home devices and Wi-Fi networks, with a focus on flexible, interoperable and user-
controllable home networks. Prpl helps manufacturers and users create more efficient and secure networks.
PSTN (Public Switched Telephone Network)
The first-generation telephone network to provide a basic telephone service (see also RTG).
PTN (Packet Transport Network)
An equipment class that natively implements SDH and Ethernet technologies; in other words, it is able to carry
and switch both of these two types of traffic separately. It is used to connect smaller, peripheral central offices
to larger offices; this case of use occurs where alongside packet traffic (e.g. backhauling of mobile sites and
broadband access) there is also circuit traffic (e.g. telephony, 2G backhauling).
QoE (Quality of Experience)
Also abbreviated to QoX, this is a measure of the overall level of customer satisfaction. QoE expresses user
satisfaction both objectively and subjectively. The QoE paradigm can be applied to any service and product
provided to the consumer.
QoS (Quality of Service)
A description or measurement of the overall performance of a service, such as a telephone or computer
network, or a cloud computing service, in particular the performance seen by network users. To quantitatively
measure QoS, several interrelated aspects of network service are often taken into account, such as packet loss,
bit rate, throughput, transmission delay, availability, jitter, etc.
QKD (Quantum Key Distribution) – QKE (Quantum Key Exchange)
Quantum key distribution (QKD) A quantum mechanics system used to ensuring secure communications. It
enables two parties to produce and share a random secret key only between each other, which they can use to
encrypt and decrypt their messages. This exchange takes place by leveraging the quantum properties of
photons. An important and unique property of quantum distribution is the ability of two communicating users
to detect the presence of a third party trying to obtain information about the key, since a measurement
process in a quantum system generally disturbs the system.
WEEE (Waste from Electrical and Electronic Equipment)
The electrical/electronic equipment that the owner intends to dispose of because it is broken, unused, or
obsolete.
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587
RAN (Radio Access Network)
The part of the mobile network that implements radio technologies, including both radio-interface data
transport functions and control functions.
RAN Sharing
The most complete form of sharing the access network. It involves sharing all equipment in the access
network, including antenna equipment, towers, and backhauls. Each of the RAN access networks is embedded
in a single network, which is then split into separate networks at the core connection point.
Refarming
The reassignment of a mobile network operator's frequency band from one technology to another for
optimization reasons (e.g. UMTS900 instead of GSM900 or LTE1800 instead of GSM1800).
Remote Unit (RU)
A logical node hosting the Low-PHY protocol layer and RF processing based on a lower layer functional split.
RNC (Radio Network Controller)
Devices (or nodes) that have the function of controlling radio resources within the 3G network.
ROADM (Reconfigurable Optical Add-Drop Multiplexer)
A remotely reconfigurable optical multiplier capable of switching traffic in a WDM (Wavelength-Division
Multiplexing) system. Its use in a transmission network increases transport efficiency by allowing up to 90 high-
bitrate channels (now up to 200Gbit/s) to be transported on a single fiber pair.
Roaming
An agreement between two or more mobile telephone operators, operating in the same territory or in different
countries, whereby users subscribed to one operator can use the network of other operators.
The roaming service is activated, for example, when the terminal is used abroad, enabling a mobile radio user
to access a network other than the one to which they are subscribed.
OSB (Optical Splitter for Buildings)
Passive optical device of the PON (Passive Optical Network), which splits an optical fiber entering the network
into several fibers going out to property units or distributes incoming and outgoing fibers to lend flexibility to
the optical network. It is installed a few meters from the home: it is often found in the building's meter room,
but can also be mounted on an external wall, underground or inserted into a distributor.
RoHS (Restriction of Hazardous Substances)
European Directive No. 95 of 2002, which establishes rules restricting the use of dangerous substances in
electrical and electronic equipment to contribute to the protection of human health and the environment.
Routed Optical Network (RON)
A network that combines IP routing with optical transport capabilities, without complex conversions between
optical and electrical signals. This allows large amounts of data to be sent faster, reducing costs and energy.
RPA (Robotic Process Automation)
The automation, using software (robots), of repetitive tasks performed by human operators.
RTG (Rete Telefonica Generale)
Known in English as PSTN (Public Switched Telephone Network), this first-generation telephone network
provided basic telephone services (see also PSTN).
SaaS (Software as a Service)
A cloud service model (see also Cloud), the SaaS (Software as a Service) model expresses the right given to a
consumer to use a supplier’s applications and services operating on a cloud infrastructure. The applications are
accessible from different devices through a lightweight interface (thin client), such as an email application in a
browser, or from programs equipped with a special interface. The consumer does not manage or control the
underlying cloud infrastructure, including the network, server, operating systems, memory, or even the
capabilities of individual applications, with the possible exception of limited configurations intended for the
consumer (parameterization).
SAR (Specific Absorption Rate)
Expresses the measurement of the percentage of electromagnetic energy absorbed by the human body when
it is exposed to the action of a radio frequency (RF) electromagnetic field. See also EMF (Electromagnetic Field
exposure limits).
SCEF (Service Capabilities Exposure Function)
Introduced in version 13 (LTE) of the 3GPP specifications, this function was designed to provide a means of
securely displaying the services and functionality provided by 3GPP network interfaces.
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SDH (Synchronous Digital Hierarchy)
A physical layer protocol (i.e. a transport protocol) used for time division multiplexing and the subsequent
digital transmission of telephony and data in geographical telecommunications networks over optical fiber,
electrical cable or radio bridge. Networks that use this physical layer protocol are called SDH networks.
SDK (Software Development Kit)
SDK is a collection of software development tools in an installable package to facilitate the creation of
applications.
SDN (Software Defined Networking)
A network virtualization based paradigm that aims to transform traditional networks into flexible and
intelligent platforms to respond in real time to bandwidth needs and the dynamic nature of modern
applications.
SD WAN (Software Defined WAN)
In the field of networking, SD-WAN (Software Defined WAN) solutions represent an innovation of traditional
Wide Area Network solutions and Edge IP Networking, developed to offer advanced connectivity services
aimed at business customers. SD-WAN solutions work agnostically from access and WAN transport network
technology, using dynamic application-based data routing strongly integrated with Multi-Cloud solutions to
link certain value-added services such as WAN optimization, application monitoring and advanced security to
connectivity.
Segment Routing (SR)
A technology that simplifies the routing of network traffic using predefined segments contained in packets.
SRv6 uses IPv6 addresses to define segments and is ideal for modern, flexible networks, while SR-MPLS is
based on MPLS labels and is more suited to existing legacy infrastructure.
Service Discovery
The process of finding and identifying the location of a service, typically performed using a service record or
naming service.
Service Exposure
Infrastructure for the exposure of API (Application Programming Interface) functions both to third parties (e.g.
business partners) and for internal use.
Service Mesh
A configurable infrastructure layer for applying microservices, which makes communication between service
instances flexible, reliable, and fast.
Service Orchestration
Refers to a single, centralized business process runnable through an orchestrator (e.g. a software platform),
which coordinates the interaction between various services and is responsible for their invocation and
composition, as well as for the management of transactions between individual services. Service Orchestration
is often compared to Service Choreography, which instead creates a decentralized approach to service
composition, where each of the services that participate in the choreography implement a self-consistent
process/workflow.
Service Provider
Someone who offers users (residential or business) a range of content or services under a supply contract.
Universal Service
The guarantee given to all users from a national territory (regardless of their geographical location) that they
will be able to use certain electronic communications services at a pre-established quality level and at an
affordable price, as an expression and practical application of a fundamental citizen right.
SIP Trunking (Session Initiation Protocol Trunking)
A service offered by a communication service provider that uses the protocol to provide Voice over IP (VoIP)
connectivity between a local telephone system and the public switched telephone network (PSTN). SIP is used
to connect, manage and terminate a call.
SLA (Service Level Agreement)
Contractual tools which define the service metrics (e.g. quality of service) that must be respected by a service
provider (provider) towards its customers/users.
Small Cell
Low-energy nodes for accessing the radio spectrum. Smaller than the antennae usually used in mobile
telephony, these can be used both to cover outdoor areas (squares, pedestrian streets, etc.) and to cover
indoor hot spots (airports, stadiums, shopping malls, stations, hospitals, university campuses, etc.).
Urban Group Stage (UGS)
Local switching center for telephone traffic transport, routing and transmission. See also Central Office.
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Line Stage (LS)
See Central Office.
Shared Access
The provision of access to only the upper portion of the spectrum available on the access operator's local
copper network to allow the provision of broadband services.
SLU (Sub Loop Unbundling)
The provision of access to the Operator's local copper subnet (i.e. to the portion of the network between the
user's location and the distribution cabinet or an intermediate concentration point).
SME (Small Medium Enterprise)
The market segment of small and medium-sized businesses that have between 3 and 50 employees.
Smart City
Refers to an urban area that uses integrated ICT technologies to optimize resources in key areas: mobility,
communication, economy, work, environment, administration and construction. From an infrastructural point
of view, the networked use of available resources improves economic and political efficiency and can facilitate
social, cultural and urban development.
Smartphone
An electronic device that combines the functions of a mobile phone and those of a handheld computer
equipped with a full operating system.
Smart TV
The new generation of televisions which allow users to enjoy audio-video multimedia content (movies, TV
series, music videos, gaming, etc.) through an internet connection.
SMS (Short Message Service)
Short text messages that can be sent and received on mobile phones connected to GSM networks. The
maximum text length is 160 alphanumeric characters.
SOHO (Small Office / Home Office)
A market segment consisting of small businesses that use telephone lines, instead of dedicated lines, for
internet connections. These are small businesses, generally with one or two employees, and businesses
conducted from home.
SON (Self-Organizing Network)
A set of technologies and architectures which, in the area of mobile radio networks, allow Operators to
introduce technological enablers for the automation of the network configuration, optimization and assurance
processes.
Optical Splitter
A passive element of the optical network used to create point-to-multipoint optical networks. The optical
splitter receives a single optical fiber at the input (OLT side) and outputs N signals on N optical fibers (1:N
splitting factor). In the downstream direction (from OLT to ONT), the splitter “copies” the input light onto the
output optical fibers, thus dividing the light power by N. In the upstream direction (from ONT to OLT), the
splitter r aggregates the light contributions carried by the N optical fibers.
Switch
■
Telephone switch: a synonym for Central Office (i.e. equipment used to establish and direct telephone calls
to a number called through other Central Offices). They may also record information for billing and control
purposes;
■
Network switch: data network devices capable of receiving and forwarding packets using level 2
information on the OSI model (i.e. hardware addresses of other devices).
Synchronous
A type of data transmission in which there is permanent synchronization between the transmitter and the
receiver.
STB (Set-Top Box)
A user device capable of receiving TV signals from a communication network (such as broadband/
ultrabroadband access networks, terrestrial TV broadcasting, satellite TV broadcasting, etc.) and sending them
to TV devices or other display devices (monitors, projectors, etc.) It may include Conditional Access functions to
manage paid content.
Tablet
Small laptop computer where it is possible to write or give commands on the screen with the touch of your
fingers or with a special stylus.
RLP (Remote Line Powering)
Technique to power road equipment (such as ultra-broadband devices placed in the splitting cabinets of Fiber
to the Cabinet architecture) from the Central Office.
TCO (Total Cost of Ownership)
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590
The overall cost of an asset (e.g. computer equipment) across its lifecycle. The TCO includes both direct costs
(hardware costs, network infrastructure, licenses) and indirect costs (management, maintenance, energy
consumption).
TDD (Time Division Duplexing)
TDD (Time Division Duplex) refers to duplex communication links where uplink is separated from downlink by
allocating different time intervals in the same frequency band. It is a transmission scheme that allows an
asymmetric flow for the transmission of data upstream and downstream. Users are assigned time frames for
uplink and downlink transmission.
TDMA (Time Division Multiple Access)
Technology for the digital transmission of radio signals, such as between a mobile phone and a base radio
station. TDMA technology divides signals into sequential parts of a defined length, placing each part in a
specific interval information channel and then recomposing the parts at the end of the channel.
TIC (Transparent Internet Caching)
A special form of network caching that is transparent to both the requestor and the requestee. The TIC
transparently intercepts the content request and delivers the requested content if its cache has a copy.
TM Forum (TeleManagement Forum)
A global industry association of more than 850 companies that collaborate to reduce technological and
cultural barriers between digital service providers and their technology and service providers, system
integrators, and consultants in the telecommunications sector.
ToIP (Telephony over IP)
Often used synonymously with VoIP, this term, however, has a broader meaning as it includes advanced
telephony services (such as video, messaging and call processing services, etc.) in addition to basic voice
calling.
Analog Transmission
A method of transmitting voice, data, image, or video information using a continuous signal that varies in
amplitude, phase, or other properties, in proportion that of a variable. One example is the transfer of a source
signal using an analog modulation method such as frequency modulation (FM) or amplitude modulation (AM),
or no modulation at all. In Telco networks, analog transmission has commonly been replaced by digital
transmission technologies.
TRX
Radio transmitters located in BTS.
TTM (Time-To-Market)
The total time needed to bring a product its conception to its availability on the market. Companies use time-
to-market metrics when developing and introducing new products to achieve first-mover advantages (e.g.
market share, sales revenue).
UMTS (Universal Mobile Telecommunications System)
See 3G.
Unbundling
The service that allows telephone operators other than Telecom Italia to rent the final part of the telephone
wire pair, that is, the copper cable that connects the Telecom Italia unit to the user location by disconnecting it
from Telecom devices and connecting it to their own.
UPF 5G (User Plane Function)
A fundamental component of the architecture of the 3GPP’s New Radio (NR) mobile core infrastructure
system. UPF is the evolution of the data plan for a Control and User Plane (CUPS) separation strategy,
introduced for the first time by 3GPP in their Release 14 specifications as an extension of the existing 4G/LTE
EPC (Evolved Packet Core).
UPS
Uninterruptible power supply.
URLLC (Ultra-Reliable Low-Latency Communication)
A set of features that offer low latency and very high reliability for mission-critical applications such as the
industrial internet, smart grids, remote surgery, and vRAN intelligent transport systems.
V2X (Vehicle-to-Everything)
A system – a family of use cases – which enables vehicles to communicate with other vehicles (V2V),
infrastructure (V2I), network servers (V2N) and vulnerable users (pedestrians and cyclists) using existing
communications technologies in order to improve safety, traffic efficiency and overall mobility. Communication
can take place either directly between devices (over 3GPP PC5 and IEEE ITS-G5 standard interfaces) or
indirectly via the network (V2N2X); In the latter case, the only available technology is 3GPP technology over Uu
interface.
VAS (Value-Added Services)
Services that provide customers with additional functions compared to the basic services offered by a
telecommunications network. In first-generation telephony (PSTN) and mobile networks, telephony (switched
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591
voice communications, first analog then digital) was considered a basic service, while VAS could include either
data transmission and fax services or call processing services (e.g. call waiting, call forwarding, etc.).
Subsequently, call processing based VAS expanded with additional features such as toll-free numbers, virtual
private phone networks, etc. A new class of VAS developed over mobile networks, including messaging services
such as SMS and MMS. In parallel, the development of data networks has led data transmission services (e.g.
initially X25, then Frame Relay, ATM, Ethernet, IP) to be considered basic services for these networks, for which
VASs can include address translation, virtual lines and virtual data networks, traffic prioritization, encryption,
etc.
Another area of VAS concerns content provided by certified network service providers, from services provided
over the telephone network to content provided via SMS (news, weather, etc.) and then from content
consumable via mobile and fixed browsing to video content streaming.
VDSL (Very-high-data-rate Digital Subscriber Line)
Access technology that makes it possible to provide the customer, through a special device installed in the
house (VDSL modem) with voice and TV services over a traditional telephone pair at downstream speeds of up
to 50 megabits per second.
VDSL2 (Very-high-data-rate Digital Subscriber Line 2)
“2nd generation” VDSL, which is capable of reaching peak downstream speeds in the order of hundreds of
Megabits per second. The actual speed depends on the distance between the customer’s device and the
network device; for example, at a distance of a few hundred meters, the attainable speed is about 100
megabits per second. For this reason, network devices are typically placed in splitting cabinets so as to be
closer to the customer. An evolution of VDSL2 called eVDSL (enhanced VDSL) enables effective speeds of
about 200 megabits per second. This has recently been deployed in the TIM network.
Vectoring
Transmission technology that eliminates mutual interference (crosstalk) between copper lines embedded in
the same cable. Of particular interest is the use on VDSL/VDSL2/eVDSL lines given the increasing penetration
of ultrabroadband services, which would make interference more sensitive. From this perspective, vectoring
makes it possible to maintain the typical performance of the above-mentioned technologies. The technology is
located in ONU equipment where, to be effective, it must be applied to all lines of a given cable; therefore, in
the case of SLU (Sub Loop Unbundling) – i.e. where the ONUs of several operators deploy the lines of a given
cable – a more complex implementation is necessary,: MOV (Multi-Operator Vectoring), which coordinates the
vectoring of the various ONUs.
Virtualization
A function implementation approach which uses only software that can be run on commercial, generally non-
dedicated hardware, as opposed to approaches that also use specialized and/or dedicated hardware.
Virtual Machine (VM)
Software which, through a virtualization process, creates a virtual environment that typically emulates the
behavior of a physical machine without the underlying hardware that allows organizations to scale processing
power, test malware and develop software.
VLAN (Virtual Local Area Network)
A virtualized connection that connects multiple devices and network nodes from different LANs in a logical
network.
VLR (Visitor Location Register)
A database used in mobile networks to temporarily store subscriber information and track the location of
mobile devices when they are active.
VNF (Virtual Network Function)
The virtualized network function on HW COTS (Commercial Off The Shelf) is hosted at Telco Data Center with
flexible capacity, use of a Virtual Machine and manual or automatic Life Cycle Management.
VOD (Video On Demand)
The provision of television programs on the user’s demand in exchange payment of a subscription or a fee for
each program (e.g. a movie or football match) purchased. This is particularly widespread for satellite television
and cable TV. Possible payment models are: SVOD (subscription to a VOD catalog) and TVOD (payment for a
single content viewed).
VoIP (Voice Over IP)
Technology that enables a telephone conversation to be conducted using an Internet connection or other
dedicated network using the IP protocol, instead of going through the normal telephone transmission line.
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VoLTE/ViLTE (Voice over LTE/Video over LTE)
A service that provides voice and video calls over IP through LTE radio access, controlled by the standard ToIP
architecture called IMS (IP Multimedia Subsystem). VoLTE/ViLTE are defined together because the service is
essentially the same for voice and video, differing only in the type of media streams that are established. As a
standards-based service, it achieves interoperability between user terminals and between the user terminals
and networks.
VonR (Voice Over New Radio)
A service that provides Voice over IP calls through New Radio radio access.
VPN (Virtual Private Network)
A network designed for a business customer or public body, using the infrastructure of a carrier providing
customized services, which operates in such a way as to appear dedicated to that specific user.
VR (Virtual Reality)
The use of computer technology to create a simulated environment that can be explored at 360 degrees.
Unlike traditional interfaces, virtual reality places the user within the virtual environment, offering an
experience with different degrees of immersion depending on the device used.
VRAN (Virtual Radio Access Network)
An architecture applied in 4G/5G networks that requires the Base Station to be divided into two parts: a
Centralized Unit and a Remote or Distributed Unit. The former is typically placed in a more centralized site than
the antenna sites and performs baseband signal processing, causing it to be known as BBU (BaseBand Unit),
whereas the latter, which remains at the antenna site to provide radio coverage, is also known as RRU (Remote
Radio Unit). Given this division, the Centralized Unit can be implemented as a Virtual Network Function on an
appropriate hardware infrastructure: hence the “virtual” header.
A fundamental aspect to make this architecture practical is the choice to split the Base Station functions
between Centralized and Distributed Units, which impacts the connection requirements between CU and DU
(midhaul). In 5G evolutions, this aspect has been addressed by identifying splitting options that are candidates
to be standardized.
VULA (Virtual Unbundling Local Access)
A wholesale service offered by the dominant operator to alternative operators, whereby the former provides
the latter with data traffic transportation on its broadband access network (“bit streams”) between end
customers and the interconnection point where the alternative operator receives the traffic. In the specific case
of Telecom Italia, the interconnection point is located at the Local Central Office, next to the OLT (Optical Line
Termination), the optical access network termination device.
W3C (World Wide Web Consortium)
The World Wide Web Consortium (W3C) is the leading international organization for standardizing the World
Wide Web. The W3C standards define the fundamental parts of what makes the World Wide Web work.
WAN (Wide Area Network)
A private network that covers a large geographical area through the use of public telecommunications
services.
WDM (Wavelength Division Multiplexing)
Technology which enables different information flows with distinct and separable wavelengths to be
transported on a single optical fiber.
Web Service
A software system designed to support interoperability between different computers on the same network or
in a distributed context (see the definition of W3C).
Wi-Fi
Wireless technology for creating data connections in a limited area, generally within a hundred meters, and
with speeds of up to tens of Megabits per second. Typical uses are home or office use as an alternative to a
wired LAN, or in a public environment to provide internet access, or even to connect devices (e.g. a laptop with
an internet-connected smartphone).
WLL (Wireless Local Loop)
The provision of a customer access equivalent (i.e. the connection between the customer location and the
central office) using wireless technologies rather than cables.
Wi – Max (Worldwide Interoperability for Microwave Access)
Technology that enables wireless access to broadband telecommunications networks, initially specified to
operate over distances of up to tens of kilometers and with speeds in the order of tens of Megabits per second.
It was defined by the WiMAX Forum, a worldwide consortium formed in 2001 by the leading fixed and mobile
telecommunications companies for the purpose of developing, promoting and testing the interoperability of
systems based on IEEE standards.
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WLR (Wholesale Line Rental)
A telephone-only wholesale service offered by the dominant operator to alternative operators, whereby the
alternative operator obtains a service similar to ULL without the need to install their equipment at Local
Central Offices. Technically, this is similar to Carrier Preselection (CPS) and differs commercially in that the end
customer is not a subscriber to the dominant operator’s access service and does not receive invoices from the
latter; this allows alternative operators to provide customers with both access and traffic services and to
produce a single invoice for both services.
WTTX (Wireless to the X)
WTTx is a 4G and 4.5G based broadband access solution, which uses wireless to provide fiber-like broadband
access for home use.
xDSL (Digital Subscriber Line)
Technology that uses normal telephone lines and encompasses different categories such as ADSL
(Asymmetric DSL), HDSL (High-Data-Rate DSL) and VDSL (Very High Bit Rate DSL) and eVDSL (Enhanced Very
High Bit Rate DSL). With this technology, the digital signal occupies high frequencies, so the data transfer rate
is higher.
XR (eXtended Reality)
The extension of reality using devices that enable AR, VR, MR and all their combinations.
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USEFUL INFORMATION
The Annual Financial Report 2024 can be viewed at www.gruppotim.it/it/investitori/report-presentazioni/
report-finanziari.html and www.gruppotim.it/en/investors/reports-presentations/financial-reports.html.
The Annual Corporate Governance Report and the Remuneration Report can be viewed by respectively
accessing: www.gruppotim.it/it/gruppo/governance/strumenti-governance/relazione-governo-societario.html e
www.gruppotim.it/it/gruppo/governance/remunerazione/relazione.html.
Information on TIM is also available at www.gruppotim.it and information on products and services at
www.tim.it.
Finally, the following contact numbers are available:
•
Free Number 800.020.220 (for calls from Italy) or +39 011 2293603 (for calls from abroad) available for
information and assistance to shareholders;
•
investor_relations@telecomitalia.it.
TIM S.p.A.
Registered Office in Milan at Via Gaetano Negri 1 - 20123 Milan, Italy
Secondary Office and General Administration: Via di Val Cannuta, 182 - 00166 Rome
Certified email address (PEC): telecomitalia@pec.telecomitalia.it
Share capital 11,677,002,855.10 euros fully paid up
Tax Code/VAT No. and Milan-Monza Brianza-Lodi Business Register No. 00488410010
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